Below are some of the most frequently asked questions on the Work Comp Audit Expense Reduction Service:
How much time will the client spend on the review?
Total time spent by the client is typically an hour at the most during the course of the review. Client will be responsible for executing request for document letters and possible follow up by email or phone to agents/insurance carriers.
What is the target market for the W.C. service?
Clients paying an average annual premium of $40K qualify for the service. An ideal W.C. client is one who is paying between $100K - $500K annually for their W.C. insurance.
What is the best way to sell the W.C. service?
Without a doubt, face-to-face meetings is the best way to sell the service. We have found other marketing means to be less effective.
What industries should we target?
The industries with the higher risk of employee injury are the best target industries including construction, manufacturing, temporary employment agencies, health care, etc.
What states are the best states to target?
We do NOT conduct reviews in the monopolistic states (WA, WY, ND & OH). Over the years, we've had our best results in states located along the east coast from Maine to Florida as well as the midwest including Illinois, Wisconsin, Tennessee, Kansas, Indiana and Colorado. We've had success in California (not as much as the other states mentioned above), however California premiums are the highest in the country so California companies should be motivated to have a review conducted based upon the amount of premiums being paid.
Average total recovery is 10-15% of a company's one year average annual premium. For example, if a company has been paying on an average $100,000 per year in workers' comp premiums, the average total recovery would be $10,000-$15,000.
How far back will a review go?
An overpayment can go back 5-7 years, however depending on the class codes and some restrictions some recoveries will only go back 3 years.
What documents do I need to obtain from my Client in order to start a review?
While W.C. has now taken the document gathering responsibility in-house, there are three documents needed initially from the client that the Advisor is responsible for obtaining. These 3 documents as well as other training and marketing documents are located over in the Resource Center;
1. Signed Agreement
2. Letter of Authority
3. Client Interview Checklist
Who should I be talking to for the Client contact?
Go where the money is: The CFO level will usually handle this. However, if a company is large enough they may have their own Risk Manager. Stay away from HR.
How do I gain access to the W.C. back office?
The advisor needs just 1 initial client submission in order to get access to the back office. This database is used as a key communication tool and allows advisors to put in comments and communicate with W.C.
Advice to Advisors when talking to Clients?
- Make sure you stress up front with clients that you are not trying to sell insurance. You want them to keep their relationship with their current carrier. This is simply an audit review that will either lead to some sort of recovery of funds for errors that were found OR they receive a free audit to know that everything has been done correctly.
- "Plant that seed of doubt" - 7/10 reviews lead to some sort of recovery.