Revitalizing a Sign Company's Workers' Comp Strategy
An outdoor sign company with fewer than 10 employees was paying $18,000 a year in workers’ comp premiums. They trusted their agent to get it right. Instead, they were misclassified into the highest-risk category available, paying a massive premium penalty for operations they didn’t even perform.
How the refund was won
The $12,000 annual savings — a $36,000 win over three years — was achieved using the exact strategies outlined in Module 3 (Classification & Premium Audit). The employer was placed into a high-risk construction code, despite performing significantly less hazardous work.
The insurance company will not correct a misclassification unless you force them to. By understanding the rules of class codes and demanding a correction, this employer moved out of the high-risk category and secured their correct, lower rate. If you don’t know the specific rules governing your classifications, the insurance company will default to the most expensive option, and you will pay the price.
This outcome maps to: