Mistake 1: Wrong workers compensation job class
During a workers compensation audit, the insurance company's auditors may use the wrong classification codes. The purpose of the job classification is to help identify the activities in which the insured parties are involved and place them into appropriate categories. There are plenty of rules which govern the application of these classification codes. Ideally your business should be classified and later assigned to a code which most resembles the nature of your work. This is the same class code which is shown on your workers compensation policy. On the other hand, there are some exception classes which may be applied to your policy. There is an allowance for particular businesses to use multiple class codes on top of the standard exception classes.
During a workers compensation audit, the insurance company's auditors may use the wrong classification codes. The purpose of the job classification is to help identify the activities in which the insured parties are involved and place them into appropriate categories. There are plenty of rules which govern the application of these classification codes. Ideally your business should be classified and later assigned to a code which most resembles the nature of your work. This is the same class code which is shown on your workers compensation policy. On the other hand, there are some exception classes which may be applied to your policy. There is an allowance for particular businesses to use multiple class codes on top of the standard exception classes.
