ToughComp Workers Comp Cost Recovery

Many companies are overpaying their workers compensation insurance premiums due to incorrectly used classifications, payroll audits, calculated experience ratings, misapplied discounts, and errors in experience rating modification factors, often without fault of the insurance carrier or the insurance broker. If there were errors, the businesses are then entitled to and will receive a refund, but only if the errors are identified and the recovery is applied for.

By taking an independent look at the Work Comp history of companies we do a non-invasive, independent audit without turning this into a time-consuming project for our clients.  The recovery team will review the information and assist in in the recovery of the overcharges strictly on a contingency basis (meaning we don’t ask for any money up front for what we do) we recover any premium overcharge dollars from the past.  We recover premium dollars that companies have paid based upon these errors.

This is a two-step process:

First we correct classifications and payroll allocations, as this can:

  • Produce higher dividends
  • Open more alternatives when looking for a better program
  • Improve your loss history
  • Lower retrospective rated premiums
  • Reduce earned premium audit bills.
  • Correct mis-allocated payrolls & payroll inclusions resulting in lower audited premiums

Then we correct claims, charges to the experience modification (“ex-mod”) and rating by:

  • Examining past claims and reserves
  • Analyzing the frequency & severity of claims for accuracy & their impact on your Experience Modification
  • Submitting all identified errors in the “your favor” for revision to the appropriate rating bureau
  • Recalculating premium audits based on experience modification revisions
  • Obtaining on your behalf any outstanding return premiums as a result of these revisions
  • Reviewing each claim and expedite their settlements
  • Negotiating reserves with your insurance carrier
  • Investigating potentially fraudulent claims
  • Reviewing payroll allocation, classifications, rates and applicable state premium credits