Case study: general contractor
General Contractor's Workers' Comp Drops in Just Two Years
A high mod was costing this contractor premium and keeping it from bidding work for large corporations.
Start a conversationThe Employer Success ProgramThe business
Commercial general contractor with 110 employees and revenue of $52 million in 2006.
The situation
A 62% workers' comp surcharge and a rising experience modification factor were costing the company an additional $185,000 a year in premium. The mod also kept them from bidding work for large corporations that required a mod of 1.00 or lower.
What we found
In the Risk Management and HR Assessment, the experience modifier analysis turned up an error and showed the mod was being mismanaged. The loss analysis of four years of loss data and OSHA logs showed the number and severity of claims were well above industry averages.
What we did
We showed the contractor they were paying the insurance company $3 for every $1 paid in claims. Then we built an aggressive plan of action: a safety committee with training and recordkeeping, administrative support with our team running the workers' comp process, and training for the safety coordinator. We also helped the company set up a relationship with an occupational medical center, a claim reporting system and a return-to-work process, and helped complete the job descriptions they needed.
The result
1.21 to 0.93
Experience mod in two years
The experience mod went from 1.21 to 0.93, with a projected mod of .90. Because the number and size of workers' comp claims dropped sharply, we negotiated additional discounts. Premium went from $430,302 to $394,000 in the first year and $365,318 in the second year.
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.