Save Premium – Check Your Class

An Excerpt From My Book, Simmonds on Workers’ Compensation Insurance:

Your workers’ compensation rates are based on the business and industry in which you work. There are over 600 employment classifications in workers’ compensation for different industries; from “Abrasive Wheel Manufacturing” to “Zoo.”

Important point: your company receives a classification – not your employees. You may run a hotel and employ someone to do nothing but paint. That person will not be classified as a painter. He will be part of the mass of employees included in the hotel classification, along with your other maintenance people, sales staff, and housekeepers.

Each class has a specific definition that prescribes who gets classified in that “code.” The definitions for some classifications are several pages long.

Get a copy of the definition for each of the classifications you have on your policy. Are the descriptions correct for your company? Work with your insurance advisor to find a classification that is a better match (at a lower rate).