A large commercial cleaning contractor recently engaged us to conduct a detailed review of their workers’ compensation premiums. With operations spanning multiple states and a sizable workforce, even minor rating discrepancies can have a significant financial impact. Leadership wanted to confirm that their experience ratings and prior audits were accurate across all jurisdictions.

During our analysis, we uncovered errors in the Experience Modification Ratings issued in New York, New Jersey, and Connecticut. Because each state calculates and applies its own rating, inaccuracies in any one jurisdiction can materially affect overall premium costs. In this case, incorrect ratings had been applied across multiple policy years, resulting in overstated premiums.

After working through the correction process with the appropriate carriers and rating authorities, revised ratings were issued and the affected policies were adjusted. The total recovery across four policies exceeded $86,000.

Beyond the immediate financial return, the corrected ratings now provide a more accurate foundation for future premium calculations. This positions the company for improved cost control moving forward.

For multi-state employers, workers’ comp increases with each jurisdiction. A thorough independent review can uncover substantial savings that would otherwise remain hidden within prior policy years.