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WC Advisors help fence company contain $4500 in savings

» insured

The insured is a privately-owned company that installs fencing for construction sites. The company employs eight people with annual revenues of $750,000.

» Situation

The company had an unusual spike in its Experience Modification Factor. Traditionally, the company’s Experience MOD was in the area of 0.8, but was now peaking at 1.24, resulting in a rise in premiums.


Certified WorkComp Advisors (CWCAs) assessed the situation and found errors in both the company’s recent audit and in the classification codes. The company just had its 60-day renewal audit and it was discovered that an open claim on a driver was incorrectly reported to the NCCI. The claim was listed as $22,000 when in fact it should have been listed as only $12,000. The clerical mistake was impacting the Experience MOD by just over 0.4 points. Compounding the problem were a number of misclassifications. First, a driver who did nothing but deliver fencing to sites was being classified as a contractor setting up the fencing (a much higher classification), and, second, the company president’s salary was incorrectly being included in the payroll figures.


The Advisor contacted NCCI and fully explained the errors that were driving up costs for the company. They worked with the existing carrier to have the erroneous audit figures and misclassifications corrected.


The reclassification and revised audit figures lowered the Experience Modification Factor from 1.24 back closer to the original 0.80. The corrected Mod resulted in a saving of $800, and the corrected audit a saving of $3,700, for a combined savings to the company of $4,500.