Automobile Dealership Slashes Premiums by over $1,000,000
Discover how an automotive dealership with 700 employees transformed their safety record and slashed insurance costs. Our comprehensive risk management approach reduced annual injuries from 36 to 1, cut claims costs by 97%, and lowered their experience modifier from 1.403 to 0.749. Result: Premium reduced from $1,647,000 to $284,000
Business
Automotive and Light Truck Dealership with 700 employees and locations
Situation
Dealership was averaging 36 injuries a year, and $506,900 in claim costs. Experience modifier climbed to 1.403. Faced a renewal offer of $1,647,000.
Assessment
Upon conducting a Risk Management and HR Assessment, realized that the safety program they had was average, focused on compliance and not truly a safety program. Hiring processes and return to work management were poor.
Solution
Provided comprehensive services to dealership including Risk Management, Behavior Based Safety, OSHA Compliance, Human Resources and performed Claims Handling for them. Established and facilitated their formal safety committee, changed their hiring processes, and implemented a drug free workplace. Established a frequent repeater program and a Zero Lost Time Program.
Result
Implemented these changes very quickly making them more attractive to insurance companies and was able to negotiate an offer of $639,000 instead of the $1,647,000 renewal offer. Injuries went to 10, then 5, then 1, followed by a year without any injuries. Claims costs dropped to averaging $12,600 a year past 5 years. Experience modifier fell to 0.749 and premium was slashed to $284,000.
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