Injury Management Program Reduces Annual Losses from $163,675 to $6,074
Discover how a multi-state machine maintenance company slashed annual workers' comp losses from $163,675 to $6,074. Our comprehensive injury management approach, including centralized claims coordination and zero loss time program, reduced their experience modifier from 0.97 to 0.83. The Result? $51,334 annual premium savings. Learn how effective claim handling drives significant cost reductions across multiple locations.
Business
Machine maintenance company employs 130 people in five states and has annual revenues of approximately $9 million.
Situation
Because the company is a multi-state risk, injury management was becoming a problem, especially since there was no on-site claims supervisor at any of the locations. The result were claims totaling $163,675 in 2005.
Assessment
Following the completion of a Risk Management and HR Assessment, determined that the company needed comprehensive injury management services. The company had a great HR department but lacked the needed knowledge for handling claims and management did not realize how each claim affected the overall cost. Therefore, a plan was developed to treat each situation as if all the employees were under one roof.
Solution
A four-step process to handle employee injuries in multiple locations was established:
- Trained a Designated Claims.
- Coordinator to oversee ALL claims, instead of processing claims through individual HR Departments.
- The Claims Coordinator is proactive and is the key contact with the injured worker, medical staff, HR Department and insurance adjuster.
- Initiated a medical-clinical relationship in each state.
- Implemented a Zero Loss Time program by having jobs inter-related to expedite a quicker return to work.
Result
By working with them, the company saw losses of $163,675 drop to $18,611 the next year, and $6,074 in the following year. In addition, the experience modifier which was at 0.97 is expected to drop to 0.83 that will result in an annual savings of $51,334.
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