Historically, workers compensation rates are governed by non-competitive markets based on traditional stand-alone policy insurance carriers. The concept is actually easy to understand. Every company has what the industry calls a MOD Score. This MOD score is set at 1.0 (Equivalent to 100%) for new companies. This provides an even playing field for all companies trying to get off the ground.
After 3 years, this score goes up for companies that mismanage the company's safety guidelines and have a claims history. A 1.34 MOD Score (134%) would notify the carrier assessing your risk that they are entitled to charge you 34% more on any rate due to your claims loss history. The score also goes down for companies with good claims management and little to no claims at all. A .89 MOD Score (89%) would notify the carrier that you are entitled to an 11% discount from the state rate for your good claims loss history. Year after year, NCCI which sets the ratings for these companies preform a claims history audit behind the scenes from the data they receive from the carriers.
Unfortunately, this is never the case for Blue-Collar companies which is usually any company that is related to the construction field. It’s hard not to feel the pain when reports show that over half of all employers' overpay for workers compensation insurance by 25% to 60% due to unnecessary workers compensation surcharges because they mismanaged their workers compensation policy simply for not knowing what are the consequences. It’s an enormous drain on employers' profit margins and often leads to illegal employer practices for not having workers compensation. It also often goes unnoticed (or improperly addressed) and is regularly swept under the rug by both, the individual at your company handling the business lines of insurance and the insurance agents for not educating you at the time of binding your policy.
What Can We Do About It Working Together?
Unlike traditional policies which never tend to approve you, peopaygo.com can work with just about any company of any size. We can work with owner-operator companies with as little as a $500 a week payroll to companies that have had extreme losses in their claims. Our staff dedicates itself on educating all of our clients on the importance of working together in managing a good claims history. We strive in holding your hand through the entire process.
One of our specialties is designing unique plans strictly based on your current situation. This is what makes us special. Our most popular is the Pay-As-You-Go Workers Compensation Plan. It allows you to pay for it just as you would pay for your light bill, only for what you use. Have any questions on how we can work together? Call us today at 1-800-355-7741.
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Give us a call today to see the many options available to you for your Workers Compensation needs! 1-800-355-7741.