General Contractor’s Workers’ Comp drops $101,207 in just two years

INSURED
A commercial general contractor with 110 employees and revenue of $52 million in 2006.

SITUATION
A 62% Workers’ Comp surcharge drove up the company’s Experience Modification Factor jumped to 1.12, costing them an additional premium of $185,000 per year. It also restricted them from bidding work for large corporations that required a 1.00 or lower Experience Mod.

ASSESSMENT
A review of the 2004-2005 Experience Mod work sheet, the loss data from the previous four years and OHSA logs revealed that the number and severity of claims were higher than expected.

SOLUTION
A Certified WorkComp Advisor (CWCA), showed the general contractor how they were paying the insurance company $3 for every $1 paid in claims. He designed an aggressive rehab plan of action: installing a safety committee, including training and recordkeeping, providing administrative support for the company by running the WorkComp process, and training the safety coordinator. In addition, he worked with the client in establishing a relationship with Occupational Medical Center, initiating a claim reporting system and a return-to-work process. He also assisted them is completing necessary job descriptions.

RESULT
Experience Mod went down from 1.12 to 1.03, with a projected 2007-2008 Mod of .95. Because of a radical reduction in the number and size of Workers’ Comp claims, additional discounts were negotiated, lowering the premium cost from $430,302 in 2004 to $394,000 in 2005 and $365,318 in 2006.