INSUREDimage of satellite antennas

A multi-state satellite installation company with 36 employees.


The company unexpectedly received a $499,916 audit premium notice. The previous premium was $13,530.


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.


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.


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

Posted 2:42 PM

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