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.
