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.
