A number of companies have non-auditable policies, at least here in NY. But you need a good broker with a large client base that KNOWS insurance, not just a salesman that sells policies. Insurers will often "tailor" programs if there are enough premiums in certain markets, and that's why the right broker is important. The fees you'll pay the broker will pale in comparison to the savings.
If you're a small company, there's really no sense going through the machinations I described previously. But if you're a larger firm, the savings we're talking about could mean a new truck, a lot of cool tools, or a nice vacation... year in and year out.
As for WC, at least here in NYS, you're pretty much stuck because even if you have multiple companies under the same ownership or shareholder, it all goes under one master policy. However, there’s PLENTY you can do to make sure you're not overpaying.
First, delineate clerical versus non-clerical employees. The rate on clerical employees (your office staff) is much lower. And no playing games here - unless you want a big claim not to get paid.
Second, be sure to report the CORRECT payroll. Here in NY, overtime and other plus rate differentials are computed at 1.0 for WC purposes, so don't just take your gross payroll number otherwise you'll end-up paying big time - especially if you're a union shop with double and triple OT.
Third, watch WC auditors. Many are outside companies on contract and get paid and renewed based on how much extra premium they bring in. They're not just being lazy when they only ask for your 941's for an audit - it's a convenient way for them to "overlook" OT and other premium rate differentials so they can whack you on the full payroll. I've got two large refund checks sitting on my desk from this "omission" alone.
Fourth, and finally, don't submit small claims because they will hike up your experience mod. Small claims are often "over reserved" so a claim that ends up costing $300 could've been reserved for $5,000 for years until its closed - and you'll be paying premiums on that the whole time. Here in NY by law, small injuries (there are rules on this though) can be paid directly by the employer. And here's the best part: You can further reduce the check amounts you'll be writing by making sure doctors and hospitals are charging the allowed WC rate, not their regular uninsured rate.
Wow, I'm really giving away a lot of secrets here! But since everyone here has been so generous with their expertise, it's the least I can do to return the favor. Happy savings!
