Premium Recovery Experts’ recent work with an HVAC company perfectly illustrates how subtle errors in workers’ compensation calculations can add up to major overcharges. As part of our standard review process, we analyzed their past audits and experience modification ratings to determine whether their premiums accurately reflected their claims history and payroll exposure.

Our review revealed discrepancies in the experience modification factors applied to two prior policy years. Although the differences appeared minor, even small miscalculations can have a meaningful financial impact. We worked directly with the insurance carrier, NJM, to request corrections on behalf of the client and ensure that the proper experience ratings were applied retroactively.

Once the revised audits were issued, the updated experience modification ratings dropped from .620 to .549 and from .614 to .564. The result was a total refund of $47,662 for overpaid premiums.

Beyond the immediate financial recovery, the corrected experience ratings will help reduce future premium costs and strengthen the company’s financial position moving forward.

This case is another example of how a careful, independent review can uncover hidden savings and deliver measurable results for business owners and CFOs.