Work Comp Premium Audit Services for Manufacturing Companies

The manufacturing industry is a major source of both goods and jobs in the U.S.

According to the U.S. Bureau of Labor Statistics (BLS), there are more than 12 million employees working in manufacturing. These numbers include workers in mills, factories, plants and other businesses that make new products or components.

Manufacturing companies produce food, paper, textiles, apparel, electronics, furniture, medicine, chemicals and other items that our society depends on. According to the National Association of Manufacturers (NAM), manufacturers employ 8.58% of the U.S. workforce, and the total output from manufacturing was worth $2,345.85 billion as of 2019.

Workers in the manufacturing industry often need to use power-driven machinery, and this can involve risks. Other risks may stem from chemicals that are used in the manufacturing processes, heat sources and ergonomic injuries.

According to the National Safety Council, manufacturing ranked as the third most dangerous industry based on the number nonfatal worker injuries in 2020. Manufacturing has a nonfatal injury rate of 113 per 100,000 workers, which is the seventh highest. The manufacturing industry also suffers from fatal worker injuries. BLS says that there were more than 300 fatalities each year between 2017 and 2020 in the manufacturing sector. In 2020, the rate of injury or illness was 3.1 per 100 full-time workers.

Overall, manufacturing can be considered a relatively dangerous industry. As a result, workers’ compensation rates may be comparatively high. However, many manufacturing companies are paying even more than they need to because of work comp rate calculation errors.

A manufacturing company should run smoothly, like a well-oiled machine. Unfortunately, workers’ compensation rate errors can throw a wrench in the works. This can increase overall operating costs, making it harder for manufactures to earn a profit and stay competitive.

We conduct audits on workers’ compensation premiums, and 80% of our audits find that the client is overpaying.

In most situations, common mistakes are to blame for the overpayments. These mistakes include:

• Payroll errors
• Mod calculation errors
• Claim valuation errors

These overpayments can be significant. For one pharmaceutical manufacturer, we were able to recover $428,000 in work comp overpayments made over a five-year period.

There’s one way to find out if you’re overpaying: undergo a work comp premium audit.

We work on a contingency-fee basis. This means that you don’t pay anything upfront. If we find an overpayment, we take a percentage of the amount that we recover for you. If our audit does not uncover an overpayment, you do not pay anything.

You have nothing to lose by scheduling a work comp premium audit review. You might have hundreds of thousands of dollars to gain. That’s reason enough to arrange for an audit now, but there’s another reason. Even if you’re not overpaying due to mistakes, you may still be able to reduce your premium costs. We can make recommendations that can help you reduce your costs going forward.

Your manufacturing companies can’t run without workers, and you can’t have workers without paying for workers’ compensation. At the same time, you don’t need to overpay. We can help you protect your operations and your bottom line by making sure you’re not paying more than you have to.

Are you ready to see how much you’re overpaying? Our work comp premium audit services can help. Get in touch.