INSURED
A multi-state satellite installation company with 36 employees.
SITUATION
The company unexpectedly received a $499,916 audit premium notice. The previous premium was $13,530.
ASSESSMENT
In reviewing the audit, CWCAs from Trissel, Graham, and Toole discovered that the auditor had ruled that the company’s independent contractors—working in more than ten states— were actually employees. As a result, the auditor applied a new code to the policy, which was a high classification for workers who install antennae on radio towers.
SOLUTION
With the support of the expertise from the Institute of WorkComp Professionals, the CWCAs from Trissel, Graham, and Toole found a rule in the manual stating that the auditors cannot apply a new code on the policy at the time of the audit. The auditor agreed and did not pursue the reclassification.
RESULT
By catching this error, the company reduced its premium to $24,000, a savings of more than $475,000. The issue also compelled the company to take steps to ensure that all of its subs have their own Workers’ Compensation policies.
Source: Institute of WorkComp Professionals