When I was asked by a vinyl window manufacturer recently whether I knew what workers’ compensation classification was in use by other vinyl manufacturers in the industry, I couldn’t imagine the reason for the question. When I learned that the answer might help companies save money on their worker’s compensation insurance, I decided to look into the topic further.

It seems that the company that posed the question had been advised to classify its workers as either wood or metal window manufacturers because there is no perfect category for vinyl window manufacturing. The problem with that is that vinyl window manufacturing is less dangerous than wood or metal manufacturing because of the saws and metal presses and other dangerous hands-on equipment in use at those types of manufacturers. This means that vinyl manufacturers that follow this advice, or similar advice another vinyl company received to classify workers as sheet metal workers, are probably overpaying for their workers’ compensation insurance.

I’ve made inquiries in several recent venues (our industry update webinar, recent trade association presentations, etc.) and have received only a handful of responses. A few companies agreed that this issue of classification is a problem and acknowledged that they are likely throwing away money on workers’ compensation insurance costs. However, they knew their workers were classified incorrectly and had no improved category to suggest. Several other companies responded with a suggestion that may be the solution to the issue. They reported classifying their workers as “4452 – Plastic Manufacturing – Fabricated Products,” a cheaper category than wood or metal product manufacturing.

I would advise any vinyl window manufacturers that are using another classification to at least inquire of their workers’ compensation insurance provider as to whether they could utilize this or another similar classification. In a soft market, any steps that can be taken to reduce operating expenses are always warmly welcomed. Also, I would appreciate receiving any additional feedback from other companies that have addressed this issue successfully so I can pass along any additional findings or recommendations in the future.