Workers Compensation Rates - What Insurance Companies Don't Want You to Know!

Workers' compensation rates have been on the rise across the country.

Wouldn't you like to know if you are being overcharged?

Insurance companies are notorious for giving people the runaround when it comes to analyzing their workers compensation premium amounts or the calculation of their experience modification rating. It's in the insurance company's best interest to keep you ignorant about your policy. If you knew about these mistakes you would be demanding a refund on your overpaid workers' compensation premium.

Things They Don't Want You to Know:

    Lack of One Entity Overseeing the Process: The insurance company will only do as much as they have to according to the state insurance laws. They do not calculate the experience modification factor or develop classification codes. This is done by rating bureaus like the National Council on Compensation Insurance (NCCI) or in California the Workers Compensation Insurance Rating Bureau (WCIRB). The insurance agency or broker is paid by the insurance companies and are subject to contracts with them. Because everybody works independently of each other, too many hands touching your data can lead to mistakes that cause you to be overcharged!
    Your Experience Rating Compares Your Company's Past Premiums with Past Losses: In reality, the formula compares the actual incurred losses for your company with average loss data for all companies in the state who utilize the same classification codes and similar amounts of payroll.
    Large Insurance Companies Don't Make Mistakes: The entire system is based upon a method of reporting data that almost guarantees mistakes. First, is simply the "human element" - people making mistakes, which leads to the "garbage in - garbage out/overpaid premium" problem. Second, there is the timing issue, with reporting the data to the bureau that calculates the experience modification. Lastly, as we have discussed above, no one is performing a quality control check on themselves or on each other.
    There Are Errors in The Calculation of Your Audit Premium: Unfortunately, many insurance company premium auditors are under tremendous pressure to audit as many policies as possible. On top of that, they are poorly trained in workers compensation laws and auditing procedures. As a result, payrolls are often reported incorrectly. They either are overstated, not limited by legitimate audit rules, or misclassified. Either way, it is costing your company money.
    Insurance Companies Would Never Recommend an Independent Audit: The workers' compensation insurance industry is burdened with errors from wrong classification codes to simple incorrect calculations, costing your business money. Because of the complexity of the workers compensation system and the various entities involved, there is no universal method to correct these errors. An independent audit would reveal these errors, entitling your company a refund, which would make the insurance companies look bad.

Question:

Would you allow an IRS agent to conduct an audit without an expert at your side?

Would it seem like a good business move if you were to have the IRS call you, ask you to send them your estimated taxes for the year, then have them pickup your records at the end of the year and just trust that they made sure you paid the lowest amount of taxes you were legally obligated to pay?

I don't think so!

A worker's compensation audit performed by the insurance company may actually cost you more than an IRS audit. Typically a workers' comp audit occurs every year, whereas you may never get audited by the IRS.

With workers compensation rates skyrocketing these days, it's a smart move to speak with a workers comp consultant about reviewing your insurance premiums to make sure that you are not being overcharged.

With over seventy years of combined experience in the workers' compensation industry, our experience and "inside knowledge" of the system allows us to understand the complication and red tape that can occur when dealing with workers' compensation premium overcharges and get you the money you are due.

Frequently Asked Questions About Michigan's Workers' Compensation Laws

Question: The injury that occurred was my employer's fault. Can I sue my employer for my pain and suffering?

Answer: Generally, Michigan law prohibits employees from suing their employers for damages, beyond the economic benefits provided by workers' compensation. However, you may be able to take legal action against the manufacturer of a defective product or against an individual (other than a co-worker) who caused the injury. If you have questions about your potential legal claims, you should talk with a Michigan workers' compensation lawyer.

Question: I believe that my injury resulted from a violation of my civil rights. Can I sue my employer in this situation?

Answer: Perhaps you can. In the workers' compensation law, there are exceptions to the general rule that prevent an individual from seeking non-economic damages from an employer. One exception is a civil rights violation; another is an injury that directly results from an intentional act by the employer. If you feel that one of these exceptions applies to you, talk with a Michigan workers' compensation lawyer about your potential legal claims.

Question: I was injured while on my way into work. Am I eligible for workers' compensation benefits?

Answer: Workers' compensation usually does not apply to one who is traveling to and from the place of employment. However, once a worker is on the employer's property, workers' compensation insurance may cover an injury.

It is important to note that employees who must travel to perform work assignments are covered by workers' compensation benefits if they are hurt on the job. For example, a person who is injured after leaving the worksite to make a delivery or attend a meeting at another location may qualify for workers' compensation, because the trip was an essential part of his or her job assignment.

On the other hand, workers' compensation may not cover an injury, if the employee was hurt while making a side-trip to handle purely personal business. If you have questions about coverage in this situation, talk with a Michigan workers' compensation lawyer.

Question: My co-worker and I were goofing around when I was injured. Am I still entitled to make a claim for workers' compensation benefits?

Answer: Michigan courts traditionally recognize that employees may engage in a certain amount of "horseplay." In most cases, this would still qualify an individual for workers' compensation benefits. However, each case must be evaluated separately, based on the specific circumstances. A worker who engaged in serious willful or intentional misconduct may lose the right to workers compensation benefits.

Question: My employer offered me a different type of job, but I feel that it is beneath my previous pre-injury position. Do I have to accept the position?

Answer: Michigan workers' compensation law requires injured employees to accept a position offered by their own employers (or other employment sources), if the new job is within their qualifications and training, and any medical restrictions. When the new job pays less than the previous position, the worker should receive partial wage loss benefits, to cover part of the difference between the individual's previous and current earnings.

A worker seriously risks any claim for continued workers' compensation benefits by turning down the offer of a job that he or she is able to do. If you are not sure how to handle a job offer or your employer demands that you actively look for other work, consult an attorney immediately.

Question: What happens if I try to return to work in a job that is supposed to be within my medical restrictions, but cannot perform the job duties?

Answer: Under the law, it should be possible for you to resume receiving benefits. However, your employer may challenge whether you made a real effort to return to work. If this happens, and you truly are unable to work, you should talk with a Michigan workers' compensation lawyer immediately.

Question: Can I choose my own doctor when I am getting treatment for my work-related injury?

Answer: For the first 10 days after a work-related injury, the employer has the right to choose the treating doctor. However, after 10 days, the law allows you to select your own doctor and other medical care providers, as long as you select qualified medical professionals and notify your employer of your intentions.

If you or a loved one has suffered a workplace injury, it is important to talk with a Michigan workers' compensation lawyer with experience in Michigan worker's compensation law.