A demolition company located on the Rte 495 belt with 21 employees and revenue of $8.1 million was experiencing high insurance premiums due to inaccurate job classifications. Additionally, the company was not taking full advantage of auditable workers’ compensation deductions. Finally, the company was also in the assigned risk pool and was required to make large down payments at renewal.
The Knight-Dik Workers’ Comp specialists determined that a lack of job descriptions and clarifications was causing lump sum payrolls to be assigned to the highest rated code on the workers’ compensation policy. In addition, the insured was not taking full advantage of the Massachusetts construction credit for employees being compensated more than $30/hour, as well as the overtime deduction.
The team at Knight-Dik was able to create detailed job descriptions and separation of duties to properly classify all employees in payroll to the appropriate class code. Knight-Dik also worked with the client to prepare for audit by preparing the construction credit application and also separating all overtime pay. The Knight-Dik team also removed the insured from the assigned risk pool and placed them in a standard market policy taking advantage of all premium discounts and payment structures.
Because of the efforts of Knight-Dik, the insured’s annualized premium dropped by approximately 18%. Along with the premium savings, the insured took advantage of all workers’ compensation audit deductions.
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