Workers' Compensation Audits for OCIPs and CCIPs
Owner Controlled Insurance Programs (OCIPs) and their cousin, Contractor Controlled Insurance Programs (CCIPs), add another level of complexity to the premium calculating process. The OCIP carriers, over whom a subcontractor has no control, is responsible for reporting the subcontractor’s data to the bureaus. Errors can result not only in overstated premiums, but also in overstated modifications that can adversely affect the subcontractor’s bidding strength.
A contractor was involved in multiple Owner Controlled Insurance Programs insured by large carriers, some of whom were out of business when we began our study. The mod was materially overstated due to reporting errors and the contractor was losing bids. We had the appropriate parties report accurate numbers, and the bureau accepted our analysis to replace that of carriers who were out of business, recovering large premium overcharges and restoring the contractor’s bidding position.
A contractor was involved in multi-state OCIPs. CRC identified how the company was being triple charged in some instances, and substantially lowered the premiums.
A contractor was involved in a large OCIP. The company’s accounting firm prepared the workers’ compensation audit, incorrectly, for the insurance company. CRC had the audit revised, returning well into six figures of insurance premiums.