Wausau Glass Company Discovers Benefits
of Certified WorkComp Advisor
Insured
Located in Wausau, WI, Rib Mountain Glass specializes in glass
for commercial entrances and storefronts, construction glazing
and retail glass sales. With 40 employees, the company had sales
revenue in 2005 of approximately $2.5 million.
Situation
Rib Mountain Glass began working with a CWCA in 1995. Then,
in 2002, the company moved its account to a direct insurance
carrier at a time when rates were increasing and lower pricing
seemed to be the issue for the owners.
The direct writer promised the coverage would be the same as
that which was provided by the CWCA. It wasn’t. The direct
writer also agreed to provide Rib Mountain Glass with a safety
manual. What they received was a “generic template”
from a web site that was not specific to the glass business.
To use the manual, Rib Mountain had to revise it for its purposes.
In addition, although the goal of moving to the direct writer
was to save money, Rib Mountain was actually paying $30,000
more than it did in 2002, largely due to an increase in the
Experience Modification Factor (Mod) f rom 0.66 to 1.17.
Assessment
The Rib Mountain experience illustrates several important issues:
• Insurance policies that appear to be identical can be
quite different. It is often difficult for insured’s,
who are not familiar with coverage issues, to identify the differences.
• The value of a Certified WorkComp Advisor. A Certified
WorkComp Advisor reviewed Rib Mountain’s coverage and
found the direct writer’s handling of claims had not been
good. Some claims that should have been cleared in a year were
still open two years later. Rib Mountain’s Experience
Modification Factor (Mod), which had been 0.66 in 2002 left
nearly doubled from 2002 to 2004, reaching 1.17 in 2004.
Solution
Rib Mountain’s management requested a meeting in 90 days
to move the account back to the CWCA’s agency. This occurred
on the anniversary of the policy. The CWCA gave immediate attention
to the outstanding claims and works with Rib Mountain, the insurance
company adjuster and treating medical providers to reduce the
outstanding claims. There are many reasons that claim costs
escalate unnecessarily. Often employers do not know what to
do when an injury occurs and lack a clear and definitive process
to manage the injury. In addition, insurance company’s
claim management is challenged by increased caseloads and reduced
staffs. Medical care is often misdirected and uncoordinated.
CWCA’s are trained to Help employers closely monitor the
progress of injured employees so that costs do not spin out
of control.
Result
The CWCA has been able to stem the tide of Rib Mountain’s
rising Mod. For 2006, the client’s Mod will be 1.11 and
should continue to drop as the improperly handled claims are
cleared. Says a representative of Rib Mountain Glass, “With
the help of our CWCA, we are understanding WorkComp better and
using their guidance we’re learning how to get our rates
and costs under control.”
