Your business is unique, and changes are inevitable. The highly trained premium consultants at MEM will work with you to make sure you’re paying on your actual payroll and risk exposures — nothing more, nothing less.
At the beginning of your workers compensation policy, your estimated premium is determined based on anticipated payroll and exposures using NCCI class codes. However, it can be difficult to predict how your business and payroll might evolve over the next year. For example, you might hire an additional employee, or drop someone down to part time.
Policies are often audited at the end of a coverage period to make sure your premium reflects your actual payroll exposures. Annual audits can be conducted easily by phone, mail or on-site. They may even be conducted online if certain qualifications are met. After your audit, you may receive an adjustment.
New policy consultations.
As a new policyholder, you may be eligible for a consultation during your first three months with us. You’ll work closely with one of our consultants to answer your questions, help you set up your records and identify your classification codes and estimated exposure.
Depending on your needs, this consultation can happen one of two ways:
- By phone: Before your call, we’ll let you know which records you will need. Your consultant will review your records with you on the phone, ask (and answer) specific questions — and then follow up with your detailed audit.
- In person: Our consultant will visit with you (or company principals) in person to review and discuss your company’s operations and risks in detail.
The end result of each is the same: you’ll have a clearer idea of your exposures and will have the confidence you are paying the right amount for your workers comp insurance.
How your audit can save you money.
The consultation process is designed to protect you and help you save money. But it does take a bit of planning on your part to make the most of it. Here are a few tips you can use to prepare for the audit process:
- Keep good records: Proper record keeping can reduce insurance costs and speed up the audit process.
- Break out deductions: You may be able to reduce premium by deducting certain items, like tips and a portion of overtime, from your overall payroll.
- Separate payroll by classification: According to NCCI rules, payroll may be split between certain class codes to get the benefit of the applicable rates for each code.
- Manage subcontractor records: Secure a valid Workers Compensation Certificate of Insurance from each subcontractor you use. If you do not have a valid Certificate of Insurance, the subcontractor must be treated as if they were an employee.