Implementation of Zero Lost Time Program Lowers Mod & Returns $177,840 To Plumbing Contractor
Discover how a plumbing contractor with 265 employees transformed their workers' comp program. Our Zero Lost Time approach reduced their loss ratio from 80% to 9% and lowered their Experience Mod from .98 to .66. Result: $177,840 annual savings through a 25% Experience Credit. Learn how effective injury management drives success.
Business
Residential plumbing contractor with 265 employees and annual revenues of $40 million.
Situation
The company was in a transitional stage causing a higher-than-average claims activity. The result was a large number of open claims that included indemnity and an Experience Mod of .98 and rising.
Assessment
Reviewed the situation through a Risk Management and HR Assessment to realize that the Experience Mod was being driven up not only by the number of claims, but also by the number of malingering claims that were not successfully closed. In fact, because there was no injury management process in place, 80% of the lingering claims included indemnity.
Solution
Putting the number-one focus on injury management, and implemented a Zero Lost Time Program. Set up a model program by creating a transitional job bank, establishing a relationship with the local medical provider, and developing a comprehensive injury prevention package. Also set up educational meetings with all site managers, and created an incentive program built around work safety and loss time.
Result
The company’s loss ratio (Losses to Premium) decreased over a two-year period from 80% to just 9%. Along with a drop in the Experience Mod from .98 to .66, the company received a 25% Experience Credit from the carrier due to the decrease in the loss ratio, resulting in a annual savings of $177,840.
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