With apologies to Winston Churchill, Workers Compensation is a riddle wrapped in a mystery inside an enigma. But there is key. And many companies have found that the key to their happiness and profits.

One of the latest changes in the essential importance of money the organization in New York. In the past, in New York on Compensation Insurance Rating Board (NYCIRB) established a fixed rate at which insurance companies charge Workers Comp premiums. This means – whether you use a private insurance company or the State Insurance Fund – there was very little difference in the actual rate.

I mean, you did not have many options. Price price.

But now, after 2008, the New York Insurance Law came into force, the system changed. Now NYCIRB only questions “loss cost” base factor. Then the insurance companies apply a multiplier called a “loss cost per click” (LCM). They multiply the final rates for LCM for $ 100 of wages. LCM insurance varies from company to company. It can go from as low as 1.0562 to as high as 1.4850. (Already you can see there is a difference of more than 40%!)

Just for an example, let’s take a masonry supply company with the wages of millions of dollars. Classification code for masonry 5022. Courses will be run as follows:

LCBR LCM final interest amount of wages

11.12 x 1.0523 = 11.50 x 10000 = $ 35000

11.12 x 1.4837 = 15.30 x 10000 = $ 45000

It goes up to $ 10,000 difference in the rate you pay in the final award. Well worth buying!

What happened in New York – and for a long time was right in other countries – that Comp workers’ insurance business has become really competitive. This means that you are no longer locked in. Now you can go shopping for rates!

So go shopping. And when you find something you like, call your insurance broker so that you get the best price.

But to get lower rates is just the beginning. To really get ahead, you should audit your own workers compensation insurance premiums for the past seven years. You can have enough money in reimbursements – money owed to you – to get your own stimulus package!

How would 40% to 60% of all companies have overcharged on their contributions. And most companies will never know it – the loss of tens of thousands of dollars in overpayments. Most employers look for workers’ compensation insurance as only one of the inevitable expense of business. They sign the form and not give it a second thought. But the company should review its policy of Worker’s Compensation. They just might be a means to recover lost money and repair the flowing bottom line.