» 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, Certified WorkComp Advisors (CWCAs) 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 Certified WorkComp Advisors (CWCAs) found a rule in the manual stating
that the auditors cannot apply a new code on the policy at the time of
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.