The Benefit of Boutique: Manufacturing

New Client: Michigan-based Manufacturer

Line of Coverage: Workers' Compensation

Issue

Payroll Audit from previous policy year resulted in significant additional premium owed by the client (33% of total annual premium).

Action

Tartan poured through the audit worksheets, consulted with the client, and determined that the insurance company was mistakenly shifting payroll from a low-cost class code to the high-cost "governing" class code. Tartan provided evidence to insurance company, who adjusted the audit.

Results

The adjusted audit reduced the amount owed by over 25%.

Commentary

Insurance companies make mistakes, but they will correct them if asked. It takes time and effort, but all audits should be reviewed to determine proper allocations.