Smelting Plant Saves $126K, Sees Mod Drop 30%

INSURED

This aluminum recycling/smelting plant employs 36.

SITUATION

The employer was in the state Work Comp Fund and claims were skyrocketing.

ASSESSMENT

Certified WorkComp Advisors (CWCA) began working with the employer just two months after its latest renewal. The CWCAs found that much of the reason for the increasing claims was due to a lack of a defined employee-injury plan and hiring procedures that failed to identify employees who either were not well suited for the jobs for which they were hired or came with histories of prior workers’ comp claims.

SOLUTION

The CWCAs and their safety team worked with the employer to organize a formal program that specifically addressed the problems they were having. First, a comprehensive hiring plan was installed to ensure that those who were hired did not have previous histories of injuries or other issues that may affect their ability to do their jobs. Second, an organizational plan was implemented in order to improve workplace safety and decrease injury frequency. Third, a recovery-at-work plan was established and introduced to both supervisors and the rank-and-file. The plan identified both the steps to take when an injury occurs and specific “light duty” opportunities, as well as letting all employees know exactly how they were to act before, during and after an injury occurred.

RESULT

Because the plan showed the promise of significantly decreased claim frequency, the CWCAs were able to free the employer from the State Work Comp Fund and move them to a standard insurance company. This move saved the plant owners more than $57,000 in the first policy renewal and more than $69,000 in the second renewal. In addition, over the two years since beginning to work with the employer, the number of claims has dropped significantly – enough to warrant a 30% drop in its experience modification factor.