The Case of the Disappearing Claims
Learn how a fit and finish contractor slashed their workers' comp claims from $535,000 to $13,000 annually. Our comprehensive approach, including supervisor training and incentives, post-hire processes, and effective claims management, transformed their safety culture. Result: Premium reduced from $1.2 million to under $250,000 per year.
Business
Fit and finish contractor with a $1.2 million Workers’ Compensation annual premium. Because of financial issues, the company does not meet self-insurance requirements.
Situation
The company’s Workers’ Compensation claims amounted to $535,000. Much of the difficulty in managing the claims process resulted from the fact that the company operated crews in some 50 work sites at any given time.
Assessment
The Risk Management and HR Assessment analysis found mistakes on the company’s Experience Modification worksheet, a poor claims management process, and frequent injuries occurring with new hires.
Solution
Introduced Post Hire/Pre-Placement processes; Medical Clinic Selection protocols and a Supervisor Claims Responsibility Management Program with the support of a trained management process. Supervisors and a new Workers’ Comp Claim Manager were trained in how to control claims including two critical issues:
- The supervisors were shown claims reports so they could see what the premium costs were doing to the company’s bottom line.
- The company’s new Work Comp Claim Manager effectively managed claims and monitored their Early Return-to-Work program.
The management processes plus the Supervisor Claims Management Responsibility program was then further enhanced to make certain the dramatic gains would continue:
- Each supervisor without a claim during a 12-month period receives a bonus.
- Each year, individual supervisors are given a claims budget and they must stay within that budget to qualify for the annual bonus.
Result
Introduced Post Hire/Pre-Placement processes; Medical Clinic Selection protocols and a Supervisor Claims Responsibility Management Program with the support of a trained management process. Supervisors and a new Workers’ Comp Claim Manager were trained in how to control claims including two critical issues:
The supervisors were shown claims reports so they could see what the premium costs were doing to the company’s bottom line.
The company’s new Work Comp Claim Manager effectively managed claims and monitored their Early Return-to-Work program.
The management processes plus the Supervisor Claims Management Responsibility program was then further enhanced to make certain the dramatic gains would continue:
Each supervisor without a claim during a 12-month period receives a bonus.
Each year, individual supervisors are given a claims budget and they must stay within that budget to qualify for the annual bonus.
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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