Your business can save plenty on workers comp premiums in New York simply by paying close attention to your class codes.
There are many steps NY employers can take to reduce their workers comp premiums; however, the easiest method any business owners can take is to make sure they are using the right job classification codes for their employees.
Workers comp class codes assign specific tasks to a classification based on risk. For example, a sheet metal worker is far more likely to experience an accident than an advertising telemarketer. Class codes for sheet metal typically have much higher workers compensation insurance premiums than a telephone sales person or marketer.
With over 700 w/c codes and an even greater number of employee classification codes, it can be difficult for employers to know just where their employees activities and job tasks fall. But, it is extremely important to understand class codes mainly because assignment of employees into the wrong classification can be very expensive.
This is due mostly to the fact that workers comp carriers use class codes to monitor claims or losses. When a specific category of employee is more likely to have an on-the-job accident, that category or class receives higher premiums to cover the expected workers comp claims that should statistically occur for those workers.
Overpayment occurs when employers use class codes for a higher rate class than what they should. This makes it vital for business owners and company managers to understand how class codes work. The first step is to take a look at your workers comp policy so you know which class codes are assigned to your workers.
Learn more about how to save on workers comp premiums and understand the classification system by reading the CFO Magazine article titled “Breaking the Code” here.
If you have questions about your current class codes or rates, be sure to give us a call or submit your questions via our contact form. We offer free workers comp quotes in New York, New Jersey, Pennsylvania and Connecticut. We’ll be happy to review your present policy and make recommendations about how Enforce Coverage Group can help you save on your premiums.