General contractor enjoys a Workers' Comp drop of $245,302 in just four years Insured A commercial general contractor with 110 employees and revenue of $52 million in 2006 and 150 employees and revenue of $75 million in 2008. Situation A 62% Workers' Comp surcharge drove up the company's Experience Modification Factor to 1.12, costing them an additional premium of $185,000 per year. It also restricted the company from bidding work for large corporations that required a 1.00 or lower Experience Mod. Assessment The CWCA’s review of the 2004-2005 Experience Mod work sheet, along with the loss data from the previous four years and the OSHA logs, revealed that the number and severity of claims was much higher than expected. Solution The CWCAs showed the general contractor how they were paying the insurance company $3 for every $1 paid in claims. The contractor accepted an aggressive rehab plan of action that included the installation of a safety committee and improved training and record keeping. The CWCAs provided administrative support for the company by running the Workers' Comp process and training the safety coordinator. In addition, the CWCAs worked with the client in establishing a relationship with an Occupational Medical Center, initiating a claim reporting system and a return-to-work process. The CWCAs also assisted the contractor in completing necessary job descriptions, and initiating a wellness process that has resulted in lowering the company's healthcare costs and increasing employee productivity. Result The Experience Mod went down from 1.12 to 1.03, with a projected 2007-2008 Mod of .95. The 2008-2009 mod is .69. Because of the 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, $365,318 in 2006, $303,000 in 2007 and $185,000 in 2008. The company uses its low Experience Mod and excellent safety record to beat their competition for work.