CASE STUDY
Workers’ comp program saves roofing company $100,000
Insured
A commercial roofing company employing more than 200 people, with approximately
$15 million in annual revenue.
Situation
The company saw its Experience Modification Factor reach as high as 1.0.
In addition to increased premiums, there was the added danger of losing
significant business as general contactors typically will not hire sub-contractors
(which the company was classified as) if that company has a 1.0 Experience
MOD or higher.
Assessment
Certified WorkComp Advisors (CWCA) worked closely with the company and
found many open claims still on the books from 2000-2004 that were not
being properly managed. These included two significant open indemnity
claims; a hand injury claim left open for over $30,000 and a knee injury
claim also left open for over $70,000. Moreover, many claims were being
inadequately treated by general practitioners with little knowledge of
occupational-related injuries, there were very limited safety measures
in place, and a return-to-work program was virtually non-existent.
Solution
Through techniques learned at the Institute, Certified WorkComp Advisors
implemented a comprehensive plan that included a network of medical
personnel familiar with occupational related injuries, a complete revamping
of the company’s hiring and safety procedures developed through
a series of educational meetings with top management and safety supervisors
(including a reworking of the company’s safety manual), and the
implementation of a new return-to-work policy to get workers back on the
job quicker. This enabled the company to reduce all open claims to paid
amount status.
Result
As a result of the steps that were implemented, the company saw its Experience
Modification Factor go from a high of 1.0 down to 0.49 in less than one
year. This also included a drop in premiums from $300,000 to $200,000
yearly, a savings of $100,000. And most importantly, the company would
now be considered candidates for all general contracting projects. |