Among the many factors that affect your workers compensation California premium is the workers compensation California classification codes. These codes are assigned to help identify the job type and its risk. workers compensation California codes associated with a high risk job have higher premiums. The opposite is true regarding codes for jobs that are considered low risk.
workers compensation California classification codes are generally determined by the National Council on Compensation Insurance (NCCI). The NCCI uses the Scopes Manual to determine the risk rating of each job. From these ratings, the Workers’ Compensation Insurance Rating Bureau (WCIRB) can oversee the job classifications in California.
More than 700 californiaworkers compensation California class codes are used to identify job types. These codes are monitored by the Workers’ Compensation Insurance Rating Bureau (WCIRB). Each class code is assigned a rate by the insurer, which has been pre-approved by the California Department of Insurance. That rate increases for every $100 of payroll within the specific classification. As such, workers compensation California class codes have a direct and substantial effect on the premium.
When an insurance agent submitsworkers compensation California class codes, they are filed with the insurer. If the agent files the wrong workers compensation California codes, your premiums will be affected. For instance, and outside sales position is a higher risk than an inside sales position. So, if the insurance agent submits the workers compensation California class codes for outside salesmen even though the retailer’s salesmen are all inside, the premium will be more than it should be.
These errors often go unnoticed for many years, and frequently come to light because of a change in the premium. While your payroll is likely audited every year, having an audit of your workers compensation California insurance policy from a private auditor periodically can help identify errors in the workers compensation California class codes used in the policy. Once these errors are identified, a report and a request for changes can be submitted to the insurance agent. Most of the time, when an agent is presented with a private audit report showing errors in the workers compensation California class codes, the agent is willing to make the necessary changes to the policy.
In some cases, the misclassification of a job is the result of a clerical error. When such clerical errors happen frequently – several times over a few years – it may be time to change insurance agents to one who is more attentive. In doing so, you may eliminate the fluctuations or unnecessary changes in your workers compensation California classification codes.
When changing insurance agencies is your best option, you can use a comparison company like BizInsQuotes.com to find the best rates with quality companies that care about your business. Just fill out the Free Quotes Form to find out which companies are best for your business. Visit bizinsquotes.com for more information on agencies that care enough about your business to double check the workers compensation California class codes for errors.