Wrong Class Code For Workers Compensation Has Customer ...

Why Class Codes Matter When It Comes To Buying Workers Compensation Insurance

by JB Woods
? 2012 Greenpoint Insurance Advisors, LLC

Denver, Colorado?Our office was recently contacted by a new customer who needed workers compensation insurance for their business in Colorado even though they had requested insurance from their existing agent.? I had to asked them why were they seeking insurance from us, when they had a quote ready to be executed with their current agent.

?JB, my current agent didn?t ask me a lot of questions about the type of work my employees were performing each day.? They assumed too much and I don?t want any surprises if there?s a claim.?? The customer cares less about price and more about coverages and accuracy.? The incumbent agent cares more about price and less about coverages and accuracy.

My response was ?I understand. ??

The truth is most clients don?t want surprises when something goes wrong with their insurance.? In this particular case, the job classification codes were erroneously quoted.? These codes (see list of class codes) are assigned and specific to each employee based on the type of work they perform.? For example, an employee who works in construction has more dangerous activities than an employee working at a medical clinic.? The codes are important factors for determining risk and price by the insurance company.

Some agents are inclined to choose incorrect class codes on purpose to save the client money or use to entice them.? This might be great news for the customer in the short run, however it can and will back fire if there?s ever a claim.? When the insurance company figures out the policy has been misclassified, the customer or agent agent could be penalized for the error.?

Therefore, customers must inspect what they expect from insurance agents.?

For Colorado companies needing workers compensation insurance, please click here for online application.

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