Private School Learns a Lesson by Seeing Mod Drop 95 Points
Discover how a non-profit school for challenged students transformed their workers' comp program. Our strategic approach reduced their Experience Mod from 1.88 to 0.93, slashing annual premiums by six figures. Learn how effective injury management and employee training led to over $500,000 in premium savings over four years.
Business
The business is an electronics manufacturer. The company employs 110 workers and has gross revenues of $30 million.
Situation
After splitting from a large national manufacturer, the company saw its experience modifier jump to 1.45, causing uncompetitive labor costs and a loss of profitability.
Assessment
The Risk Management and HR Assessment determined that the increase in the experience modifier was a result of an increase in the severity of repetitious injuries to hands and wrists, due to the type of light assembly work involved. The experience modifier was also being driven up by a number of malingering claims and too much reliance by the manufacturer on their insurance company to manage the claims after they happened, resulting in higher premium costs. The manufacturer had no established return-to-work procedures nor 24-hour claim reporting requirements.
Solution
The focus was on lowering the severity of the hand and wrist injuries and improving the outcome of the malingering claims. Set up an occupational clinic relationship with pre-employment testing, including grip testing to eliminate potential future claims. A clinical relationship was also put in place for existing claims, set up a return-to-work process and made the clinic aware that light duty was available as a return-to-work option. This assured early intervention, proper medical treatment and a speedier return to work. Trained supervisors on 24-hour reporting requirements and the impact that Workers’ Compensation has on the employer’s costs, and started regular safety trainings. Furthermore, worked with management to demonstrate the value of this process by showing them how much money they would save.
Result
Malingering has been eliminated and outcome from severe claims has been reduced from $35,000 to $6,500, resulting in premium savings of $85,500 for three years.
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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