Top 10 List of Work Comp Audit Errors
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Are You Overcharged for Workers Compensation?
Wrong Work Comp Job Class Used
Number 1 on the top ten list of Workers Compensation Audit Mistakes
- The wrong work comp job class was used on your audit.
- Workers compensation job classifications are used to identify the activities of insureds and place them into underwriting and rating groups based on industrial or occupational categories. Rules govern the application of classification codes. Generally your business will be classed and assigned to a governing class code which most represents your work. This is the class code that will show on your workers compensation policy. There are some exception classes that may also be applied to your policy. Certain types of businesses are allowed to use more than one class code in addition to the standard exception classes.
- Misapplication of job classifications occur in many work comp audits. With over 700 job classes to choose from it is easy to see how audit mistakes and errors may occur.
- Here's what you need to be looking for;
- Did the auditor change your work comp class codes on the audit?
- Were your class codes changed by the insurance company?
- Was your payroll put in the highest rated class?
- Were your key employees classified correctly?
- Was sub contract labor properly classed?
- These are just a few things to look for that may indicate an incorrect workers compensation audit. Incorrect audits mean you are paying to much for your workers compensation coverage.
- Keep in mind the auditor works for the insurance company, not for you! With over 700 job classification codes in use today classification errors occur frequently. We continue to find errors in job classifications that benefit our clients.
- Workers compensation job classifications are used to identify the activities of insureds and place them into underwriting and rating groups based on industrial or occupational categories. Rules govern the application of classification codes. Generally your business will be classed and assigned to a governing class code which most represents your work. This is the class code that will show on your workers compensation policy. There are some exception classes that may also be applied to your policy. Certain types of businesses are allowed to use more than one class code in addition to the standard exception classes.
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