$45,004 during the same period. While the insurance company pays these losses, the difference between the two premiums is $174,540. A savings of $174,540 due to fewer injuries (Employer I, see Table C) provides a competitive advantage. The fact that injuries affect the premium rate for three consecutive insurance years highlights the importance of preventing workplace injuries. Investing in time, training and equipment for employees is worthwhile, especially given the magnitude of premium savings described in our example. The benefits of being a caring and proactive employer in terms of employee productivity and morale are an important additional consideration. Class Code 8391A vs 8391B (CA only) • Class code 8391A applies to service technicians, porters and drivers. Any employee of the dealership who is engaged in repairs, maintenance, service, detailing or cleaning of automobiles or trucks should be assigned to this class code. Any employee engaged in driving or transporting automobiles or trucks should also be assigned to this code, as should parts drivers. • Class code 8391B applies to service writers, estimators, parts managers, parts counter-persons and service managers. Table A: Payroll Data (Employer I & II) Employee Annual Payroll No. of Employees Payroll Year 1 Payroll Year 2 Payroll Year 3 Clerical/Office Staff (Code 8810) $50,000 20 $1,000,000 $1,000,000 $1,000,000 Sales Staff (Code 8748) $80,000 20 $1,600,000 $1,600,000 $1,600,000 Technicians (Code 8391A) $80,000 23 $1,840,000 $1,840,000 $1,840,000 Service Writers, Parts Counter, Parts and Service Managers (Code 8391B) $85,700 7 $600,000 $600,000 $600,0000 Total 70 $5,040,000 $5,040,000 $5,040,000 Table B: Injury Data and Losses Paid Per Injury Employer I Employer II Year Claim # Type of Injury Incurred Losses Type of Injury Incurred Losses Year 1 1 Cut Finger $1 Back Injury $50,000 Year 1 2 Cut Finger $1 Back Injury $7,500 Year 1 3 Broken Finger $10,000 Broken Finger $10,000 Year 1 4 Cut Finger $1 Elbow Sprain $5,000 Year 1 5 Head Injury $5,000 Head Injury $5,000 Year 2 6 Arm Rash $1 Fatality* $175,000 Year 3 7 Back Injury/ Cumulative Trauma $25,000 Back Injury/ Cumulative Trauma $25,000 Year 3 8 Arm Rash $5,000 Arm Rash $5,000 Total $45,004 $282,500 *Death benefits are statutorily limited in certain states. In California, death benefits are capped at $320,000. Only $175,000 is used in this sample calculation. 16 SAN DIEGO DEALER
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