Implementation of comprehensive
Workers’ Comp program saves manufacturing company $3,000 on one claim
Insured
The insured is a wood products manufacturing company that employs more than
40 people divided into three work classes – sash/door/assembly millwork,
sales people and clerical. The company works one shift, has a very stable
workforce and consistently produces a high quality product.
Situation
Although the company has a highly competent management team, claims were
being left up to the insurance company to manage and close. Open claims
were found that resulted in a higher Experience Mod and higher premiums.
One claim in particular had no activity for over a year and was adding seven
points to the Mod. The insurance company also failed to explain the importance
of a transitional duty program.
Assessment
Certified Work Comp Advisors (CWCAs) reviewed the loss runs prior to the
employer’s renewal. They found open claims with no activity that could
be closed prior to the renewal. The company was sending the injured worker
home to recuperate versus returning to work on a transitional duty job.
Solution
The CWCAs put a risk management plan together that included, among other
components, detailed procedures for returning an injured employee to work.
They also aided the client in proper follow up procedures with the insurance
companies to get claims closed.
Result
Because the plan showed the promise of significantly decreased claim costs,
the wood products company became more attractive to other insurance companies.
By being more insurable, it was able to secure more services and better
pricing.
On one claim alone, the insured saved more than $3,000 as a result of the
improved management. |