A careful audit helps
save oil company $2,000
Insured
The insured is a large oil company making deliveries to area businesses,
including five convenient stores/service stations that it owns. The company
has 40 employees and estimated annual revenues in excess of $50 million.
Situation
Following an audit, the insurance company attempted to charge the company
for higher job classifications even though the number of employees or the
type of work had not changed.
Assessment
Certified WorkComp Advisors (CWCAs) reviewed all audit worksheets. After
a careful review and discussion of the situation with the head of the company,
it was determined that there were two employees who had been classified
as truck drivers, when the proper classification was maintenance workers.
It was further determined that the misclassification was made by an independent
auditor hired by the insurance company who had no prior knowledge of the
company.
Solution
The CWCAs went through the NCCI Scopes Manual of Classifications and found
classifications more suitable to the two workers. The request for the change
was put in writing to the underwriter, who agreed to place the two employees
in the lower classification.
Result
By undertaking the new audit, the CWCAs were able to zero in on the mistake
and return close to $2,000 in premiums to the company. |