Insured
The scaffolding company employs over 50 people with locations in two states.
Situation
The company experienced a substantial increase in claims activity in one year,
going from $45,039 to $107,606. The majority of these claims were longstanding
and many proved to be fraudulent in nature. The company hired an external risk
management firm and paid a significant amount of money in fees with few results.
Assessment
CWCAs met with the management team. The company had no formal injury management
program. Fraudulent claims were rampant throughout the organization. Employees
were hired on good faith or referral without any pre-screening measures; often
hired for jobs for which they were not physically qualified. There was no relationship
with a medical facility for treatment of injuries. Employees were kept out of
work until they could perform their job at full duty. There was no one person
in the organization responsible for claims or hiring.
Solution
The CWCAs immediately implemented an injury management program, working to close
outstanding claims and mitigate any damages. They established a sound pre-employment
screening process, including conditional offers of employment, physicals and
CORI checks. The CWCAs worked with the company to develop a relationship with
a local occupational health facility to manage all pre-employment screenings
and workers’ compensation injuries. The occupational health facility performed
worksite visits to develop a customized physical to ensure the company was hiring
the right employees for the job. To reduce indemnity claims and return injured
employees to full duty as soon as possible, a Back-on-the-Job program was established.
A newly formed in-house injury management team supervises program implementation.
Result
By controlling costs, the CWCAs were able to reduce reserves by $103,000. Claims
were reduced by 35% in one year. Furthermore, the CWCAs found five recoveries
not properly recorded by the insurance company, resulting in a 2-point Mod reduction
and a 2-point ARAP reduction. In making sound hiring choices, the company was
able to do more work with fewer people. Through the pre-hire screenings, the
company has eliminated a handful of prospective employees who either could not
meet the physical requirements of the position or who were scared away by the
process. The Back-on-the-Job program is so successful they have extended it to
all non-work-related injuries as well. With the creation of the injury management
team, the company is better able to manage injuries, has reorganized and reassigned
a number of employees to more appropriate positions, and has hired a fulltime
safety manager.
In addition to these costs savings, they have opportunities to bid on much better
jobs because of all their efforts.
