A quick review of the workers compensation policy declarations (Dec) page prior to renewal and upon receipt of the renewal policy can turn up opportunities to save premiums or avoid disputes with the insurer. Take a close look at the following items and give some thought to the possibilities.
- Estimated payrolls -- If they look high, you could be giving your insurer a free loan. If they are too low, then expect severe sticker shock from an additional billing at the time of the premium audit.
- Classifications -- Are these the jobs the employees are actually performing?
- Discounts and Rates -- Are they similar to your last policy?
- Credits -- Are they similar to last year? Have any credits been eliminated?
- Deposit premium for the policy period -- Can you pay a smaller deposit premium and make monthly payments?
- Insured's information -- Check the first section, usually listed or shown as Item 1, and verify information about the named insured, such as name, address, and entity type. Make sure that this matches your company's info exactly. (There can be major problems when the policy has a slightly different name or address.)
- Coverage provided -- Item 3 of the Dec page details information concerning coverage. Check Section A, Workers Compensation Insurance, and Section C, Other States Insurance. If your company is operating in a state that is not listed, you could end up paying a WC claim out of pocket.
- Premium calculation -- Usually Item 4, does this look right to you? Does it look similar to last year's policy?