CASE STUDY

Soap manufacturer uses hiring practices to keep thousands from going down the drain

Company

A soap manufacturer located in Michigan with 100 employees and annual revenue of $16 million.

Situation

The company was facing a $275,000 work comp claim from an employee who stated he injured his back at work while lifting.

Assessment

A Certified WorkComp Advisor (CWCA) researched all aspects of the claim and discovered that the employee might have had a previous back injury. To determine the veracity of the claim, the CWCA had the employee examined by an occupational medicine physician who they had put in place for the employer. Because of the doctor's expertise, he was able to determine that the injury occurred prior to employment.

Solution

The CWCA compiled convincing evidence to dispute the claim, including that the employee may have filed Workers' Comp claims at three previous employers, the employee's lateness in reporting the injury and the uncertainty by the employee of exactly when and where the injury allegedly took place on the job. Working with the insurance carrier, the CWCA successfully disputed the claim and worked to get the claim settled.

Result

Because the CWCA was proactive in setting up hiring practices, including an occupational med center relationship for this client, they were able to settle their portion of this $275,000 claim for $21,900 or only 8% of the entire settlement. The employer's aggregated savings in Workers' Comp insurance premiums totaled $279,300.