Automotive Services Company Slashes Claims, Experience Modifier and Premium by 65% (by $180,000)
Discover how a diverse business with 160 employees across 11 locations transformed their safety record. Our comprehensive risk management approach reduced annual injuries from 19 to zero, cut claims costs by 97%, and lowered their experience modifier from 1.622 to 0.797. Result: Premium slashed by 65%, saving $180,000 annually.
Business
Diverse business with 160 employees and 11 separate locations: Gas/Convenience Stores, Heating Oil Distributorship, Automotive Parts Stores, Automotive Repair Station and Hardware Stores
Situation
Business was averaging 19 injuries a year, and $113,800 in claim costs. Experience modifier climbed to 1.622. Facing a premium of $278,000.
Assessment
Conducted a Risk Management and HR Assessment that identified that the safety program they had was average, and hiring processes and return to work management were poor. Also saw a significant number and cost of claims from employees that had multiple claims.
Solution
Provided comprehensive services to business including Risk Management, Safety, OSHA Compliance, Human Resources and performed Claims Handling for them. Established and facilitated their formal safety committee, changed their hiring processes, developed a new employee handbook and implemented a drug free workplace. Established a frequent repeater program and a Zero Lost Time Program.
Result
Implemented most of these changes over a 4 month period prior to their insurance renewal, making them more attractive to insurance companies. Was 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 dropped to averaging $2,800 a year past 5 years. Experience modifier fell to 0.797 and premium was slashed to $98,000. A reduction of $180,000 and 65%
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