Client: A San Gabriel Valley protective coatings contractor · Coverage: Workers' Compensation · Status: Serviced
The problem
In the first year on its workers' comp policy, the contractor saw an $11,556 credit on its account, had no new invoice since July, and received a separate $524 dividend check. The office manager didn't know whether to request the money back or what the dividend was.
How Pierce helped
- Contacted the carrier's underwriter to confirm where the credit came from and how it was being applied
- Translated the answer into plain terms for the client
- Explained the two options: let the credit pay future bills, or request a refund through the carrier's billing department
The result
The credit came from the final audit of the prior policy year. It stays on the policy and pays future bills; it had already covered the latest quarterly bill, leaving $10,778.98. The dividend check is separate and the client keeps it. The client left the agency a Google review afterward.
Why it worked
Audit adjustments are one of the most confusing parts of workers' comp. Getting a clear answer from the carrier and explaining it in plain language let the owner make an informed choice about the money.
Related coverage
Workers' Compensation Insurance · Painting Contractor Insurance · California's 2028 contractor workers' comp rule
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Client names and identifying details are withheld for privacy. This story is based on an actual account handled by our agency, as documented in our files. Coverage, pricing and results for your business depend on your own details.