Let’s Talk Close Outs with Michele Andersen

Michele Anderson of CR Solutions
Michele has been a member of the CR Solutions team since 2008. Her primary role is to ensure that all incoming data is accurately entered into CR-Insight (CR Solution’s RMIS). Specifically, her tasks include entering contractor’s monthly reported payroll, preparing and mailing enrollment packages, generating OCIP/CCIP certificates of insurance, entering loss run information and verifying policy logs with the insurance carriers.

Why do we verify payroll?

As an Account Associate, I am responsible for analyzing all data that is submitted to ensure accuracy in reporting. This process entails careful attention to payroll rates and improper usage of workers compensation (WC) codes. In the case where a contractor reports payroll at a significantly higher or lower dollar per hour rate than what we usually see for a specific WC code, I contact the contractor to verify the payroll amounts. In some instances, a contractor is assigned a specific WC code but is reporting payroll under another WC Code. Often, this is a red flag that needs to be addressed promptly. Sometimes benefits are added into payroll totals when they are not supposed to be, or limited payroll for our NY projects may not be calculated correctly. Most of these discrepancies can be resolved through a quick phone conversation. It is very important to keep an accurate monthly payroll report on file as this can affect the length of the close out process. Before the Account Manager can finalize the insurance credit calculations, all payroll-related issues must be worked out. As such, if the contractor reports payroll outside of the wrap-up policy’s effective date, we cannot close out the contract until this has been corrected.

Why is it essential to submit proper close out documentation on time?

Receipt of the wrap-up work termination form notifies us that a contractor has completed their work. This notification triggers several actions. First, we will forward this notification on to the insurance carrier and ask that all OCIP/CCIP provided coverage be terminated. At the same time, we will classify the contractor as “completed” in CR Insight, which will tell the system to stop all requests for monthly payroll reports to the contractor. Next, we will review the contractor’s file for completeness. Once we have confirmed that all of the required wrap-up documentation has been received and is accurate, we will perform our close-out insurance credit calculation. Finally, the general contractor and/or owner will be notified of the contractor’s termination from the program; then, a close-out package will be sent to the contractor. It is important that all of these steps happen in a timely manner to ensure coverage is cancelled at the appropriate time so as to avoid erroneous claims and begin the carrier audit process. Timely processing also eliminates any delay in the release of the final retain age to the contractor due to insurance issues.