Comprehensive Workers’ Comp Program Saves Manufacturing Company $40,000
See how a wood products manufacturer transformed their workers' comp program. Our risk management plan, focusing on transitional duty and claim closure, made them more attractive to insurers. The result? Over $15,000 annual premium savings and $3,000+ saved on a single claim.
Business
The insured is a wood products manufacturing company that employs more than 40 people divided into three work classes – sash/door/assembly millwork, sales people and clerical. The company works one shift, has a very stable workforce and consistently produces a high quality product.
Situation
Although the company has a highly competent management team, the Risk Management and HR Assessment, revealed that claims were being left up to the insurance company to manage and close. Open claims were found that resulted in a higher experience modifier and higher premiums. One claim in particular had no activity for over a year and was adding seven points to the experience modifier. The insurance company also failed to explain the importance of a transitional duty program.
Assessment
Reviewed the loss runs prior to the employer’s renewal. Found open claims with no activity that could be closed prior to the renewal. The company was sending the injured worker home to recuperate versus returning to work on a transitional duty job.
Solution
Implemented a risk management plan that included, among other components, detailed procedures for returning an injured employee to work. They also aided the client in proper follow up procedures with the insurance companies to get claims closed.
Result
Because the plan showed the promise of significantly decreased claim costs, the wood products company became more attractive to other insurance companies. By being more insurable, it was able to secure more services and better pricing, reducing their annual premium over $15,000.
On one claim alone, the insured saved more than $3,000 as a result of the improved management.
Don't Just Take Our Word for It! Real Businesses, Real Results
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.
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.
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!!!!
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.
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.
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.
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%.
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.
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!
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