The WCIRB collects and validates classification data for all California employers. This data is critical to ensuring that policyholders engaged in common industries are similarly classified. It is also key to the publication of accurate experience modifications and the use of the data for ratemaking.
As part of this effort, the WCIRB’s team of Field Representatives conducts on-site reviews at policyholders’ business locations to gather a detailed description of the operations and to verify the classifications that apply to their business. Based on this review, the Field Representative prepares a Classification Inspection Report that is sent to the both policyholder and their current insurer.
The Inspection Report in Detail
The first page of the report provides an at-a-glance summary of the report’s key findings including: a summary of the operations conducted at the inspected location; a breakdown of employee activities by department, estimated payroll and assigned classifications; the basis of the classification assignment; an overview of any clerical office activities; and, if appropriate, an overview of the Multiple Enterprises Rule.
Clicking on any of the blue text takes the user to reference material included at the end of the inspection report. These include complete classification phraseologies and footnotes. Click on the blue links in the sample report to see this functionality in action.
Basis of Assignment
The Basis of Assignment column identifies the rule in the USRP that is the basis for the classification assignment. Applicable values include Specific (meaning the operations are specifically described by the assigned classification); Analogous (meaning the assignment was made based upon an analysis of process and hazard), Standard Exception, Miscellaneous Employee, General Inclusion and General Exclusion.
Multiple Enterprises Analysis
If the inspection report includes operations that meet the USRP’s definition of a “multiple enterprise”, this table breaks down the assignment based on a variety of factors to be considered at time of audit – including interchange of labor, physical separation and the relative pure premium rates. This analysis is specifically directed by the USRP in the Multiple Enterprises Rule. (The analysis and assigned classifications contained in this table are subject to insurer verification at time of audit)
This section provides a variety of additional data including: physical description of the location inspected, the employer’s website address, additional named insureds and any relevant notes about the business.
Key Factors for Class Assignment
For each separately classifiable operation, the report lists the specific factors – taken directly from the USRP’s definition of the classification – that led to the classification assignment.
Additional Key Data Points
This section includes detailed data collected during the inspection that is relevant to the classified operation. Information provided includes: type of customers; finished products, goods or services; raw materials; processes; and tools and equipment.
Assignment by Analogy
This section is used whenever the WCIRB determines that there is no classification that specifically describes an inspected operation and therefore the operation must be assigned to a classification that is most analogous from the standpoint of process and hazard. This section highlights by bold text and a checkmark the factors used in determining the most analogous classification.