The company was facing the possibility of going out of business when it was suddenly brought to their attention that they were required to have workers’ compensation certificates for all its workers, at a cost of $1.1 million.

It was discovered through careful investigation that auditors were looking to send out 1099s for all of the company’s workers, although none were deemed by the company to fall into that category as they operated home day care locations. This was a Federal Program that the nonprofit was asked to help manage.

Knight-Dik caught the audit in its early stages and worked to have state officials explain the situation to the insurance carrier’s auditors. When the process seemed to lag, Knight-Dik then stepped up and secured a new carrier for the client, who overturned the previous ruling regarding the workers’ comp premiums.

As a result, the company did not have to file 1099s on its workers, the $1.1 million premium was overturned, and the company continued to successfully operate as it had in the past.

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