Incorrect audits drive up rates for printing company
Insured
The printing company employs 85-90 people and with revenues
estimated at $15 million.
Situation
The employer was witnessing an increase in its Experience Mod
and annual premiums.
Assessment
The employer became increasingly dissatisfied with their current
carrier because they felt their audits were incorrect. Recognizing
the need to have an expert review of the audit, the employer
turned to Certified WorkComp Advisors (CWCAs). The CWCAs discovered
that not only were employees misclassified, but the business
itself was misclassified. They also had a higher than average
number of injuries despite a formal safety program that even
met state certification and insurance policy credits. This combination
resulted in unnecessarily high premiums.
Solution
The CWCAs toured the facility, interviewed employees as to their
duties and where they worked, and upon confirming their belief
that many employees were incorrectly classified, set up a new
audit. Furthermore, by taking the time to understand the nature
of the operation, they determined that the company itself was
being misclassified as a printing operation, when in fact the
operation was sheet-fed, which has a lower employee injury factor.
To tackle the number of injuries, the CWCA’s implemented
their Behavior Based Risk & Safety Improvement Program that
resulted in a reduction of the number of injuries by 63% in
the first year and 94% in two years.
Result
The CWCAs were able to lower the employer’s annual premium
from $85,000 to $43,000. The employer also got back an additional
15% of the $80,000 annual premium ($12,000) by correcting their
classification. They also saw their Experience Mod drop from
1.30 to .90, with an anticipated drop to .70 in year three due
to establishing a unique Behavior Based Risk & Safety Improvement
Program.
