Wholesaler gets down to nuts & bolts with a
The business is a wholesaler specializing in the shipping of nuts, bolts
and other parts to the automotive industry. The company employs 50 workers.
Traditionally, the company had a low Experience Mod, but was now looking
at a potential leap from .92 to 1.15. The company did not understand
the reasons for the significant jump.
Certified WorkComp Advisors (CWCA) determined that the projected increase
was the result of a handful of injury claims in which workers were taking
several weeks to return to work. One claim, in particular, was driving
the increased cost. An employee, who suffered a hand injury, was undergoing
surgery. The doctor, unaware of any type of return-to-work policy, prescribed
four weeks out of work. The insurance company added the estimated cost
to the claim reserve.
Since reserves are treated in the same way as costs incurred, this was
the wake-up call to the employer, who had previously felt he was “saving
money” by having Workers’ Compensation pay his employee. He
was unaware of the financial implications for his company due to the indemnity
payments for the time away from work.
A CWCA worked closely with the company to give them a better understanding
of the impact of the lack of a light duty return to work policy
and helped them establish a Return-To-Work program. This turned the
previous ‘discretional’ medical
disability into ‘no’ disability allowing the injured worker
to return to light duty within days of her surgery.
As a result of the CWCAs’ actions, the company avoided having a
$5,000 premium increase and stopped a potential 10% increase on its Experience