Comprehensive Workers' Compensation Program Cuts Claims Costs

Discover how a masonry contractor transformed their workers' comp program, reducing injury claims from $123,107 to zero. Our comprehensive approach, including indemnity review and return-to-work policies, reversed a 50% Mod increase. Learn how focusing on injury control, not just premium shopping, drives significant cost savings.

Business

 Masonry contractor with 30 employees and annual revenue in excess of $3 million. The company constructs residential brick walls, patios, sidewalks, floors and driveways.

Situation

In a three-year span, incurred injury claims losses of $123,107. As a result, the employer saw her company’s Experience Modification Factor (Mod) rise 50%, from 0.91 to 1.37.

Assessment

The Risk Management and HR Assessment of the business' Workers' Comp program found that the employer was “shopping for rates” to save money on Workers’ Compensation coverage rather controlling work-related injury costs. Despite focusing on cutting premium through "shopping", their premiums continued to climb. The lack of focus on the situations causing their injuries led the employer to have no written policy for dealing with employee injuries, safety, and hiring. 

Solution

Addressed these cost issues in several ways. First, implemented an “indemnity review” process that helps the employer to determine when to self-pay indemnity costs. Next, provided the employer with an employee handbook that, among other things, spells out in writing an injury-reporting program that requires immediate notification upon occurrence of an injury and a return-to-work program that defines the “light duty” jobs – such as inventory work – that employees will perform if physically unable to perform their regular jobs.

Result

Since then, the employer has not filed a claim for employee injury losses. Self-paying indemnity alone will save the company up to 70% of its total claims costs. In addition, the written reporting and return-to-work policies have significantly cut the number of work days lost while the clinic relationship program keeps everyone – the employee, employer and medical provider – informed about the employee’s recovery and working towards the employee’s return to full duty.

Don't Just Take Our Word for It! Real Businesses, Real Results

  • Elk Air
    David, I just can't thank you enough to finding and returning to us the $27,438 in overcharges from our last two years of audits.  I only wish we had been allowed to go back to the prior years to recover money.  More importantly, you provided us with a process so that we can avoid being overcharged in the future by the insurance companies.
    Ralph Kemp - President
    Elk Air Conditioning
  • CHarper
    I just cannot thank you enough for helping us to take control of our work comp.  In addition to making my life easier by helping to manage our claims, your team helped us create a very strong safety culture.  Our injuries are down significantly, but more importantly, you helped reduce our work comp premium by over $80,000 a year.
    Lori Bodnar – HR Director
    C Harper Automotive Group
  • Odyssey Communications

    David, you and your East Coast Risk Management team blew us away. First, your team recovered over $42,000 in overcharges that my agent allowed to happen. Second, over the next 7 months you overhauled our safety programs and hiring process. Your injury management team minimized a potentially uncontrollable and ugly claim which would have cost us tens of thousands of dollars in additional premium and rehiring costs. Third, your negotiations with our insurance company resulted in an additional $49,387 (44%) reduction in my workers compensation renewal premium. We figure you have added over $100,000 to our bottom line in just 1 year. Thanks!!!!

    Alex Yawny - CEO
    Odyssey Communications
  • Siegel & Jennings
    Throughout David’s career he has always been on the forefront of thinking. His understanding of insurance and specifically workers' compensation allow him to see things and establish practices that others eventually follow. David takes an entrepreneurial approach to problem solving resulting in both savings and added protection for his customers.
    J. Kieran Jennings, Esq. - Managing Partner
    Siegel Jennings
  • Kasto
    I first became acquainted with David’s knowledge of Workers’ Compensation when I attended a seminar in 2007. I took the opportunity to meet with David to discuss better ways we could handle not only our Work Comp claims, but how we needed to drastically overhaul our HR processes. The Benefits have been multitude. I have great confidence in ultimately can make a company more profitable.
    Colleen Maize - HR Director
    Kasto, Inc.
  • Gottlieb
    9 months ago I hired Duncan and their East Coast Risk Management to implement their Risk Solutions Program. As a result, I just saved $57,494 on my insurance renewal - That's 42%. Duncan met with me and my employees, toured my facility and put together an aggressive Risk Solutions Business Plan. They started implementing immediately and are in our plant several times each and every month.
    Robert Gottlieb - CEO
    Gottlieb, Inc
  • Jet Net
    David Leng is very knowledgeable about Workers’ Compensation and a pleasure to work with. His knowledge allowed our company to reduce its Workers’ Compensation premiums by almost 55%.
    Mike Spitznagel - CFO
    JetNet Corporation
  • Bowser Automotive
    Working with Duncan we were able to enhance the safety culture in our organization and reduced our Workers’ Compensation costs by over $300,000 a year.
    Gary Bowser, II, President
    Bowser Automotive Group
  • Duda Cable
    Duncan found that my experience modifier was WRONG!!!!  Not one of over a dozen plus agents that I spoke to previously saw that!  They were able to get my experience modifier corrected, and force my insurance companies to return over $86,000 to me! They leveraged what safety changes they implemented and obtain an insurance policy at our renewal that was over $100,000 lower. In a span of 4 months, they put almost $200,000 back in my pocket!
    Mark Duda - President
    Duda Cable Construction

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