MODIFICATION MATTERS

摘要

A SIMPLE MISUNDERSTANDING-OR misclassifica-tion-can lead to big costs. A handful of errors in experience modifications, employee classifications and missed credits or discounts can cost steel contractors tens of thousands of dollars a year. Finding and fixing these mistakes enable companies to recoup past costs and reduce future premiums. These costs can be quite significant. In fact, one Florida-based steel fabrication and erection company reduced its annual premium by $262,400 by identifying and correcting the experience modification rate, properly classifying employees and reducing overstated claim reserves. And one cell tower contractor reduced a $650,000 audit charge to $250,000 just by correcting employee misclassifications.