June 26, 2015 Leave a comment
Texas’ workers’ compensation system has undergone several changes in the last year as it continues to take steps toward fully becoming an NCCI state. The latest in those changes is the implementation of Classification Quality Assurance inspections.
Classification Quality Assurance inspections
As of June 1, 2015, NCCI now performs CQA inspections throughout Texas as a service to our marketplace to ensure that businesses are classified correctly, and therefore priced correctly.
These inspections are on site and are not safety related. Their only purpose is to evaluate whether or not the business’ classification is accurate. NCCI will choose businesses to inspect by using statistically-credible, non-random criteria. In other words, companies aren’t chosen at random and the inspections will most likely target classifications that have been known to have frequent misapplications.
For Texas Mutual policyholders, these inspections should not be a source of worry or concern. We expect that the overwhelming majority of CQA inspections will reaffirm the classification of our policyholders’ businesses. If an NCCI inspection results in a request to change a classification, we will evaluate their findings and discuss with our policyholders and agents prior to making any changes.
These inspections are a welcome addition to Texas’ workers’ compensation system as they will likely help ensure fair pricing and aid in monitoring for abuse that sometimes occurs.
NCCI has been offering Special inspections for Texas businesses since June 1, 2014. These inspections are available at a cost to the requestor to provide third party analysis of a policy classification.
Texas Mutual conducts its own classification inspections and therefore does not request NCCI inspections. We are confident in our understanding of the classification system and work hard to ensure that businesses are placed correctly. However, policyholders and their agents may request an NCCI Special Inspection if they believe that they are misclassified and haven’t been able to reach a resolution with their carrier. At Texas Mutual, classification disputes can be made by contacting your agent or underwriter.
What these inspections mean for businesses
If your business is chosen for a CQA inspection, there is nothing to be concerned about. As mentioned above, inspectors are not there to evaluate workplace safety or OSHA compliance. They are simply there to ensure that the business’ classification is accurate. According to NCCI, an inspector visits the policyholder’s business and documents the type of work being conducted (e.g., process, materials, equipment, final product) and the employees performing the work. From that documentation, the inspector develops a detailed classification inspection report.
These inspections should bring minimal interruption to businesses and in most cases reaffirm Texas Mutual’s classification. If you have any questions about NCCI inspections, contact your agent or underwriter or call Texas Mutual at (800) 859-5995. If you’d like information about other NCCI changes taking place this year, visit texasmutual.com/NCCI.