A careful audit helps save oil company $2,000
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.
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.
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.
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.
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.