I like the way you explain the audit as being similar to doing taxes and that premiums up to that point are estimated premiums. ACA premiums work the same way, except that those audits are called reconciliations. It’s a great way to frame the experience and manage client expectations. Thanks!
When you look at the heart of this stuff it’s complicated. A bunch of subs have ripped off insurance companies. Now companies are making rules and the general contractor gets hit for it. We blame lawyers but total get why the work comp audit becomes the bad guy
I have a friend he pay thousands of dollars to insurance for yrs... Like 20 yrs Never had claims... Paying more than $30k per yr... My point: government & insurance they're ripped off people for yrs... Of course they make all of this a law , so we can be obligated to pay.. Insurance industry gives to government millions of dollars to keep those laws running to the meddle class people.. The Meddle class are who pays the price.... The whole system is been made it to control your money... One day all that is going to change.....
If your audit was never paid years ago can you still get WC with another company if you open another business? Or if you make payments can another lender approve you for your new business?
Every company and agency has a different way of going about it but generally, agents receive a lower first year commission for P&C but they get a commission every year the policy renews. Life/Health/Annuities is generally higher when a new policy is put into place with little or no long term commission paid.
Life is higher up front (90%-100% of annual premium is the comission typically) but P&C over time becomes exponentially more (10-20% per policy and for each renewal) annuties can be very lucrative too! Its a percentage of whatever the investment is (typically 4-10%..) if you have investments over 100,000 you can make really good money
What happens if I use my business bank account for personal expenses but I keep receipt of everything, proving I am not paying another employee, does that will complicate the workers comp. Audit?
Have separate accounts, they can pierce the corporate veil (it means if you have an LLC but you mix things up they can easily go hold you as a person liable for everything your business owns or does wrong)
Had licensed subcontractors with three own liability ins use there own tools and truck and swift says there not subs because they do to much work for me !!!!!! They are so crocked screw over small businesses
Totally get it! We don’t make the rules and they can totally suck but you’re right. If a sub makes a large percent of their total annual income from your business, work comp companies are going to add them to your payroll and audit you accordingly. Argument1: they are jerks. Argument 2: this shows that they’re essentially employees and they would file a claim under your work comp and win if something bad happened. If an insurance company is going to have to pay in a claim they want some premium for it. That’s the weird balance for work comp companies.
No no no do you even understand the construction trades if a general has a lot of work and likes the work a sub does and that sub bids work to him and gets alot ot that work and he is his own business with insurance and trucks and tools and supply's how in any world is he a employee this is just a bunch of poeple who sit behind a desk all day and have no freaking clue how stuff works and are so freaking money hungry making money off other poeple back!!!
@@jcaldwell7272, totally. To get slightly more specific, in most states, if your sub has their own work comp or general liability policy, your insurance company shouldn't be adding them to your figures in an audit. Generally speaking, the only time a sub should be added to your numbers is if their own policies don't exist or aren't "good enough". If you feel your subs have proper insurance coverage, push your agent to help you understand why they're being counted on your audit.
Hmm, well maybe. I think we can all agree that basing a Work Comp policy price on payroll makes sense. The higher the payroll the more risk. But the policy starts before anyone has actually been paid. So the basis of the policy has to be a guess. If there was no system for checking in on the actual numbers, everyone would guess super low. That would be awesome for a bit but the premium wouldn't come in to support the claims going out, the companies would go bankrupt, and the system would fail. So help us understand why checking in to confirm numbers is extortion.
@@ShineInsurance What does what someone make have anything to do with injury risk? Is Bill Gates more likely to get injured than any other office worker at Microsoft doing similar work?
It's the mandatory and extraction of payment by force. If one doesn't comply you get fined. If you dont pay the fines and comply they will seize the funds. If you resist furthur they WILL send armed men to arrest you and if you resist further you will be maimed or worse
What if I have a LLC, with no employees and no subcontractors. I do all on my own. How would the audit work?
Buy health insurance and supplemental disability. Don’t buy work comp if you don’t have employees.
I like the way you explain the audit as being similar to doing taxes and that premiums up to that point are estimated premiums. ACA premiums work the same way, except that those audits are called reconciliations. It’s a great way to frame the experience and manage client expectations. Thanks!
Thank you so much! I just got an insurance audit and was sooo confused and scared…but feel so much better now 🥰🥰
So glad we could help. The word audit does seem scary but it's really not. Let us know if you have any issues with it. We're happy to help.
Workes comp is such a headache they are a RIP off and so crocked
When you look at the heart of this stuff it’s complicated. A bunch of subs have ripped off insurance companies. Now companies are making rules and the general contractor gets hit for it. We blame lawyers but total get why the work comp audit becomes the bad guy
@@ShineInsurance
How can you rip off insurance companies ?
😂
They have millions
@@luisguzman1393 , if you rob Jeff Bezos and get caught you still end up in jail.
I hate this fucking process.
Thank you so much for this video!!!!!
First explanation that makes sense. Thank you
Greatest compliment we could receive!! Thank you and best of luck in your workers comp journey.
I have a friend he pay thousands of dollars to insurance for yrs...
Like 20 yrs
Never had claims...
Paying more than $30k per yr...
My point: government & insurance they're ripped off people for yrs...
Of course they make all of this a law , so we can be obligated to pay..
Insurance industry gives to government millions of dollars to keep those laws running to the meddle class people..
The Meddle class are who pays the price....
The whole system is been made it to control your money...
One day all that is going to change.....
First you need to learn how to spell and write a complete sentence.
If your audit was never paid years ago can you still get WC with another company if you open another business? Or if you make payments can another lender approve you for your new business?
Thanks for explaining this. It makes so much sense ❤️❤️❤️
So happy it helped!!
I heard alot that they dont refound wich is not nice ?
So what is the truth ? Thank you
What if i only reported 1 employee and had more and want to avoid being charged more?
What about when it goes to collection
Excellent video. Thank you!
Glad it was helpful!
Are the commissions (sales) higher for P&C or Life/Health/Annuities etc? Thank you
Every company and agency has a different way of going about it but generally, agents receive a lower first year commission for P&C but they get a commission every year the policy renews. Life/Health/Annuities is generally higher when a new policy is put into place with little or no long term commission paid.
Life is higher up front (90%-100% of annual premium is the comission typically) but P&C over time becomes exponentially more (10-20% per policy and for each renewal) annuties can be very lucrative too! Its a percentage of whatever the investment is (typically 4-10%..) if you have investments over 100,000 you can make really good money
What happens if I use my business bank account for personal expenses but I keep receipt of everything, proving I am not paying another employee, does that will complicate the workers comp. Audit?
Have separate accounts, they can pierce the corporate veil (it means if you have an LLC but you mix things up they can easily go hold you as a person liable for everything your business owns or does wrong)
Can you explain general liability
The general liability audit is VERY similar to what we explain here. We'll get that video out soon though.
Glad to watch this
Very helpful, thank you so much !
Happy to Help!! Thanks for watching.
Thanks for the advice.👍👍🙋
What about just one employee …
From a small flower shop
$19,000 a year
Thanks, Jeremy!
U was right
Wow I wish I would have seen this 4 years ago lol 😂 I’ve experienced all of this lol
Nice thanks
Thanks l for info on that
Glad it was helpful.. Right?
U didn't lie to me thank u for that
thank you
No problem. The audit thing can be a total bummer if you don't get how it works. Hopefully that won't be you from here on out :)
Quick 📚
Had licensed subcontractors with three own liability ins use there own tools and truck and swift says there not subs because they do to much work for me !!!!!! They are so crocked screw over small businesses
Totally get it! We don’t make the rules and they can totally suck but you’re right. If a sub makes a large percent of their total annual income from your business, work comp companies are going to add them to your payroll and audit you accordingly. Argument1: they are jerks. Argument 2: this shows that they’re essentially employees and they would file a claim under your work comp and win if something bad happened.
If an insurance company is going to have to pay in a claim they want some premium for it. That’s the weird balance for work comp companies.
No no no do you even understand the construction trades if a general has a lot of work and likes the work a sub does and that sub bids work to him and gets alot ot that work and he is his own business with insurance and trucks and tools and supply's how in any world is he a employee this is just a bunch of poeple who sit behind a desk all day and have no freaking clue how stuff works and are so freaking money hungry making money off other poeple back!!!
jj keller, cool. You clearly agree with argument 1. Don’t let us cool you off. Be mad with your bad self
Sorry man just makes no sense
@@jcaldwell7272, totally. To get slightly more specific, in most states, if your sub has their own work comp or general liability policy, your insurance company shouldn't be adding them to your figures in an audit. Generally speaking, the only time a sub should be added to your numbers is if their own policies don't exist or aren't "good enough". If you feel your subs have proper insurance coverage, push your agent to help you understand why they're being counted on your audit.
Watching these vids make me jealous of what others get to pay for there class code. 10 per 1000... more like 13 per 100...
SOUTHERN ROOFING COMPANY
$ 68 PER $ 100 LABOR
@@5thsealministries685 that's crazy, how do u make any money ??
@@5thsealministries685 it’s not 68 dude I live in Baton Rouge and have a roofing company
Payrole
I pay carpenters less than 35perhour. Their class close is 32% you are all lucky.
End day every business owner just working for IRS and insurance and pay taxes plus taxes and taxes every day BTW welcome to America freedom land 😢
Extortion at its finest!
Hmm, well maybe.
I think we can all agree that basing a Work Comp policy price on payroll makes sense. The higher the payroll the more risk.
But the policy starts before anyone has actually been paid. So the basis of the policy has to be a guess. If there was no system for checking in on the actual numbers, everyone would guess super low. That would be awesome for a bit but the premium wouldn't come in to support the claims going out, the companies would go bankrupt, and the system would fail.
So help us understand why checking in to confirm numbers is extortion.
@@ShineInsurance What does what someone make have anything to do with injury risk? Is Bill Gates more likely to get injured than any other office worker at Microsoft doing similar work?
It's the mandatory and extraction of payment by force. If one doesn't comply you get fined. If you dont pay the fines and comply they will seize the funds. If you resist furthur they WILL send armed men to arrest you and if you resist further you will be maimed or worse
Also not get behind
Don't plan that 1 that's fraud
Wait, what’s fraud?
Fine if don't gott
Pop small business enterpernureship
Slow role it