SUCCESS STORY
Workers Compensation Classification Review
Storage / Logistics
about the client
The client didn’t raise the issue — we found it. Reviewing past, present and future obligations during onboarding uncovered an incorrect classification that had been costing the business year after year.
what their challenges were
The client hadn’t approached Actium Partners about their workers compensation premiums. The issue was uncovered as part of our initial review of the business during onboarding.
The business had been classified under Furniture Delivery and Removal Services at a workers compensation premium rate of 13.36%. The classification had been established by a previous adviser and had never been revisited.
As a result, premium invoices had been issued and paid year after year using a classification that did not accurately reflect the work the business was actually performing.
how actium partners helped
Our workers compensation classification review began with an examination of the business’s actual operations, the duties being performed and the wage records for each relevant policy period.
The evidence supported a substantially different classification: Storage n.e.c., with a workers compensation rate of 5.22% rather than the 13.36% rate previously being applied.
As part of our broader business planning and advisory approach, Actium Partners prepared and lodged a submission with icare seeking to have the classification corrected. Once the classification was successfully changed, we lodged a second submission requesting that the correction be applied retrospectively across the two preceding policy periods.
Before our review, the client had:
- a workers compensation classification that didn’t reflect its actual operations
- a premium rate of 13.36%
- years of premiums calculated using the incorrect classification
- no indication that the classification had previously been reviewed
After our review, the client had:
- the classification corrected to Storage n.e.c.
- an ongoing workers compensation rate of 5.22%
- $10,301.01 refunded for the current year
- $14,188.26 refunded for prior years
- a total of $24,489.27 recovered
- an ongoing premium rate reduced by more than 60%
Overall results
$24,489.27 recovered + ongoing premium reduced by more than 60%
