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
Get Your Custom Risk Management Plan Today
Simply fill out the form and our team of experts will reach out to you to discuss your personalized risk management strategy.