Landscaping Contractor Pays the Price for Inaccurate Classifications 

Wallingford CT General Liability Insurance and Workers Compensation Insurance

The Situation

A Wallingford, Connecticut landscaping contractor’s policy listed two classifications: residential landscaping and lawn maintenance. The activities were rated and classified separately. The insurance company distributed the insured’s payroll 50/50 between the two classifications.

The Burgess Solution

We reviewed this landscaper’s policy after he became frustrated with high premiums. When we asked detailed questions about his company operations and employee work distribution, we determined that half of his payroll had been rated based on “landscaping” when his primary activity was “lawn maintenance.” As a landscaping classification meant higher rates, the misclassification had cost him a great deal in overpaid premiums.

The Results

When we changed the landscaping contractor’s payroll allocation to reflect the right classifications, his premiums were much lower. The classification change affected both his workers compensation and general liability insurance premiums. As his expiring policies had not yet been audited, he requested a classification correction, which netted a significant return premium.