Most Companies Unknowingly Overpay Workers’ Compensation Premiums
What your insurance agent doesn’t tell you about your policy might be costing your company hundreds of thousands of dollars every year. Fortunately, companies with high premiums may see relief soon.
(PRWEB) February 5, 2005 -- Workers Compensation premiums are a major expense
for most businesses today. This government mandated insurance is required for
every business with employees and can sometimes hurt a company’s profits more
than taxes. Because of heavy government involvement and confusing pricing
structure, most businesses pay premiums without second-guessing their insurance
agent. By whole heartedly handing over the full amount their insurance agents
request of them, most business overpay their premiums by ten
percent.
Workers compensation overcharges occur because of a complex
system put in place and governed by clerical personnel and actuators in 50
states. Premiums are based on a complex system of calculations which take into
consideration items such as: payroll amounts, experience, and other pertinent
safety information. Insurance agents collect all this information when creating
a policy but, according to recent studies, most insurance agents do not monitor
all these variables as thoroughly as they lead us to believe. They send in
auditors yearly to check certain aspect but barely scratch the surface of what
might be costing your business thousands of dollars every
year.
Government officials in most states are working on bills to
simplify the code and save business money but many believe this is too little
too late for companies that have been paying outrageous premiums for decades.
Fortunately, for those companies paying the highest premium amounts, relief is
available immediately. Businesses which pay out more than $30,000 annually in
workers’ comp premiums can apply for a free review of their policy with
Benevolent Business Services Corp. BBS will examine your policy for the previous
five years to determine if you have overpaid. Besides reducing premiums for this
year and beyond, they might even be able to convince your insurance company to
refund a portion of what you have paid in the past. The service has been very
successful so far and there are plans to begin servicing smaller companies
before the end of this year. To have your policy reviewed, free of charge, you
can visit BBS’s website at www.wchelp.com or call them at (877) 369-1118.
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Source : http://www.prweb.com/releases/2005/2/prweb205350.htm