Insurance Newsletter – June – Work Comp Focus

June, 2007 Issue 85 – Since 2000

This Month, a Workers Compensation Focus!!!

Learn the Rating Plan of Your Work Comp Policy

Each insurance company has several workers’ compensation plans. Many have three – Preferred, Standard, and Sub-Standard. Some insurers have only Standard and Preferred. The difference is in the rates. Preferred rates are, naturally, lower than standard. Find out what plan you’re in. Find out what you have to do to get moved into a lower rated plan.

The current insurance marketplace is as competitive as any in 15 years. Push your insurer to provide you with the best rate.

Learn the Credit Structure of Your Work Comp Policy

Insurers include discretionary credits or debits in the pricing of your w/c policy – discretionary by the underwriter. These factors can increase or decrease your premiums by as much as 25%. They’re used as competitive tools by insurers – reduce the premium to be more competitive – increase the premium when they can get it. The factors are loosely tied to loss control and management programs. In reality, they are entirely subjective.

Review your policy to learn if you’ve been debited or credited. Track your factors at renewal. Ask for a better rating to reward good loss experience.

Control Your Work Comp Costs – Get a Copy of Your Audit Worksheets
Ask your insurer to provide you with a copy of the Audit Worksheet prepared for your most recently expired policy. This document provides the details of how the insurance company determined your final premium. It lists employees, classifications and payrolls. Look for errors such as the inclusion of overtime and incorrect classification of employees.

Having an employee classified in a higher rate code could cost you big premium dollars.

Workers Comp Tool – Looking for Guinea Pigs

The experience modification is a big part of the final premium you pay for your workers’ compensation. I’ve developed a simple tool that will evaluate the inner workings of your mod. I’m looking for a few employers to test this out on. I’ve used it with several clients. I’d like some outside feedback. Let me know if you’re interested – For helping me out, I’d be glad to spend some time with you on how you can improve your experience modification in the future.

Informative Insurance Teleseminars

I hold regular teleseminars to help insurance buyers with their insurance. My goal is to provide useful, easy-to-implement ideas. These are not sales presentations, but solid info you can use to make better insurance decisions.

Email me to register or for more information –

June 20 – For BMW Dealers – Through special arrangement with BMW this is part of a special series of teleseminars for BMW dealers only.

June 28 – Simmonds on Bank Insurance – Property Insurance, General Liability, and Work Comp Issues for Banks

(These sessions are free to insurance buyers. Insurance people are welcome at a $75 fee.)
All sessions start at 10:00 am Eastern and last for 45 minutes. If you have a topic suggestion for future teleseminars, let me know.

Maine and Other Stuff

While spring may be here, it certainly isn’t warm. We’ve had the heat on several times over the past two weeks. The fireplace has been in use often.

We graduated two kids from school in the past month. Christine from college, and Jarred from high school. Christine already has a teaching position lined up in Mexico, Maine (2 hours northwest from here).

Time To Brag… I have recently been recognized with “Board Approved” status by the Society for Advancement of Consulting, an organization accepting only the top 1% of consultants nationwide. I’m the fourteenth consultant to be so honored worldwide and the first in the insurance business.

Wildlife Report: Humming birds at the feeder all day long. the finches are everywhere. No bears this spring. Plenty of squirrels. Turkeys every so often.

Do You Have The Right Insurance?

Contact me to discuss an unbiased review of your insurance program. Do you have the right coverage? Can your policies be fine-tuned to improve the protection? Can changes be made to ease the administrative burden insurance causes? Are you getting the service you should from your broker? I can help. Remember, I don’t sell insurance so I’m unbiased.

Need A Speaker?

I’m pleased to speak to trade, business, or service associations about insurance topics.

Please Forward This Newsletter To Your Business Associates

Scott Simmonds, CPCU, ARM Insurance Consulting
Phone 207-284-0085
Fax 802-992-4027

Comments regarding insurance policies or products in this newsletter do not constitute an endorsement. I accept no fees of any kind from any company mentioned in this newsletter.

© 2007 Insurance Consultants of Maine, Inc. All Rights Reserved. We encourage sharing this newsletter if copyright and attribution (including my web address) are always included.