Does CompSource Oklahoma Surcharge?

I get calls all the time saying okay, you say you can Save me up to 37% on my workcomp. Prove it. Most of these calls come from clients of CompSource Oklahoma. When I ask them if they have ever read their policy, guess what? The answer is an affirmative NO. I then direct them to Part Five-Premium of their CompSource policy that explains their deposit premium and how it is treated. It's very clear that it is not applied to any premiums owed. Well, guess what? If it doesn't apply to any premiums owed, what is it used for? Another typical response is, I don't Know. Uh....., it might be considered a surcharge by some. The deposit is always kept at 25% of whatever your annualized premium is but is never applied to your premium. Since CompSource clients have to do a monthly payroll report, they (CompSource) are always current with your premiums. It also, states that the deposit will be retained until cancelled and a final audit is completed. The deposit will be applied to any past due premiums determined to be due by the final audit. This is not to say that some real insurance carriers don't do the same thing. They do. They just don't hide their intentions to do so. Most real insurance carriers will collect a 25% deposit and let you have 9 to 12 monthly payments to pay the workcomp policies off. However, their deposits are applied to your premium. So, can we Save YOU up to 37%? Probably. However, if you don't understand what I have just explained, You will be better served to continue and pay an additional 25% and feel good about YOUR decision.
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"How to Get-Even with Insurance Companies"

Insurance Companies like individuals have all types of different characteristics, attitudes, beliefs and some are just difficult to work with. However, the only reason you take out insurance coverage is to protect your financial well being. You need to have some comfort in the fact that when you have a loss, most if not all of it will be taken care of by your insurance carrier. Meaning you will get to replace the loss with cash to buy another, whatever, ie; car, boat, motorcycle, home or (whatever). Anyway, sometime you might encounter an individual that has an attitude which may hamper the recovery of your loss. This has happened many times. The solution is to try and negotiate with the adjuster to a satisfactory settlement. If that doesn't work, you might enlist the help of your agent. He/she should be able to go to the insurance carriers' claims manager and work out a settlement. Let's suppose that doesn't work and everything is heading south on you. Before hiring that attorney, submit a complaint to the insurance department. I've attached an Oklahoma Complaint form. This is a non-litigious way of seeing if the insurance carrier truly is putting smoke and mirrors up to not pay your claim. You fill out the form telling the insurance department your side of the story. They send your version to the insurance carrier that has to respond in so many days as to their side of the story. You get a copy of their response. If you're still in disagreement, you write another letter to the insurance department. This time they may or may not have a sit-down session with you and the insurance carrier. If the department agrees with your position, 9 times out of 10 a settlement will be forth coming. However, if they don't, then belly up to the bar and hire your own gunslinger (attorney) and duke it out. A non-interested 3rd. party legal eagle will decide, the JUDGE! Rest assured, this happens a lot but mostly insurance companies would rather settle than pursue the gunslinger mentality. This is the method I would suggest to "Get Even with YOUR insurance carrier". (http://www.oaktreeagency.com/Forms/RequestForAssistance.pdf)http://www.oaktreeagency.com

"How To Be a WorkComp Guru Part III"

Isn't it interesting that the most important element of a workers compensation program is the employee which is at the heart of this blog and the least to which consideration is given. Everything works fine until the employee complains of a physical problem. One which he discovered while working. Most employees never ever venture into the real participation of a workers compensation claim. However, those that do are really two diverse personalities of claimants. Those that are really injured and those that are chronic manipulators of the workcomp system. You see, workers compensation is a strict liability statute. Meaning, if you're hurt or discover that you're hurt while on the job, the employer pays, regardless. Knowing this, it would seem that employers would take the time to check out their new hires a little better than they're doing. Why, you ask? It's simple, the insurance companies are going to surcharge you if they pay out more than they take in (premiums). You the employer are always going to foot the bill, no matter what they charge you. Well, that is unless you decide to go out of business. Not a good alternative to developing a branding quality to your identity as a business. This situation can be drasticlly reduced. You the employer need to check the workcomp background of your employees, especially new hires. You simply have an area on the employment application where they sign acknowledging their acceptance of letting the employer run background checks. This service normally runs between $10 and $50 depending on how in depth of a check you want. To see and know more about workcomp go to:http://www.oaktreeagency.com/Work_comp.html

"How To Be a WorkComp Guru Part II"

The hardest part of being in business is staying up with all the paper work. However, if you don't, it will surely come back to haunt you. Workers Compensation is an insurance coverage you buy to protect you from the government and your employees. It is statutory, meaning it's required if you have employees! Okay, you say, I'll do what's required. That makes you a good risk for some insurance carrier. You should get the state prevailing rate. Pay the premium and everything is fine. Well, at least you hope that's the way it is. I hope so, too. Sometimes, it just doesn't work out the way we hope for, however. When you issue a pay check to an employee, you need to be able to breakout the overtime, bonuses, reimbursements, per diems and any other monies paid to that employee and keep them separated through out the year. Why, you ask? Because 45-60 days after your policy expires or renews, a company representative normally referred to as an auditor will visit you. This is done either by a personal visit, phone audit or a paper audit which is referred to as a voluntary audit. Kind a sounds like an IRS stipulation, doesn't it? Voluntary always means, it's a requirement and is even stated so in your Workers Compensation contract (POLICY). By keeping all of these various methods of pay separated, YOU can save up to 31% on your workers compensation costs. Now you're talking some BIG BUCKS! or could be, not to mention the time involved in bringing your payroll records to the level needed to accomplish an audit. So, now we have covered 1. Correct Classifications and 2. Being Careful on Audits. Stay tuned to Part III of "How to Become a WorkComp Guru". To see and know more about workcomp go to:http://www.oaktreeagency.com/Work_comp.html

"How to Be a WorkComp Guru"

Most employers would rather take an enema than spend a few moments discussing the ins and outs of workers compensation. It's a necessary evil in our modern world. However, for those employers bold and persistant enough to take the time to understand their workers compensation program, the pay off may be tremendous. Did you know that classifications can be changed? Suppose you start out as a dynamite hauler. Wow, big time costs there! Over time you're promoted to a salesman or better yet an inside expediter. The cost of workcomp is reduced by up to 98%. Bet your insurance company or their representative didn't tell you about that. Well, you say, the auditor will catch it. Maybe, maybe not! Someone signs off on your annual audit. That someone may not know to ask the auditor, this guy doesn't do that particular job anymore. Can we put him in a lower classification? Be sure to get a copy of the audit you sign off on. It usually comes back to haunt you if you don't. If your not sure about which employee should be in which classification, you can call "NCCI" (National Council on Compensation Insurance) at 1.800.622.4123. They will be glad to help and they are the source for most insurance companies obtaining correct classifications. Now you have been introduced to Part I of "How to Be a Workcomp Guru". To see and know more about workcomp go to:http://www.oaktreeagency.com/Work_comp.html