Case study: automotive services
Automotive Services Company Cuts Claims, Experience Modifier and Premium by 65% ($180,000)
Eleven locations, five kinds of business, and a lot of repeat claims. The fix started four months before renewal.
Start a conversationThe Employer Success ProgramThe business
Diverse business with 160 employees and 11 separate locations: gas and convenience stores, a heating oil distributorship, automotive parts stores, an automotive repair station and hardware stores.
The situation
The business was averaging 19 injuries a year and $113,800 in claim costs. Its experience modifier had climbed to 1.622, and it was facing a premium of $278,000.
What we found
The Risk Management and HR Assessment found an average safety program and poor hiring and return-to-work management. We also saw a significant number and cost of claims from employees who had multiple claims.
What we did
We provided comprehensive services, including risk management, safety, OSHA compliance, human resources and claims handling. We set up and facilitated a formal safety committee, changed their hiring processes, developed a new employee handbook and put in a drug free workplace program. We also set up a frequent repeater program and a Zero Lost Time Program.
The result
$180,000
Annual premium reduction, 65%
Most of these changes went in over the four months before their renewal, which made the business more attractive to insurance companies. We were able to negotiate an offer of $193,000.
Injuries fell to 11, then 5, then 2, followed by three years without any injuries. Claims costs have averaged $2,800 a year over the past five years. The experience modifier fell to 0.797 and premium came down to $98,000. That is a reduction of $180,000, or 65%.
Where the Employer Success Program comes in
It starts with a Diagnostic and Plan. We read your loss runs, your mod worksheet and your key contracts, and we talk with the people who run the work. You get the pattern behind your claims and a short list of what's worth fixing first.
From there our claims, HR, safety and fleet people work alongside yours, and you get a Score Card at the start and every year after, measured against your own starting point.
Start with a conversation
Tell me what's going on. I read these myself and reply within two business days. If there's nothing worth fixing, I'll tell you that too.