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The Case of the Out of Shape Employees


A business with 100 employees that markets and repairs construction tools.


The Experience Mod had jumped to 2.00 following a variety of job-related injuries, most of which were related to the physical requirements of the jobs. The Workers' Compensation insurance carrier had issued a "non-renewal" notice.


When the Certified WorkComp Advisors audited the Experience Mod, loss runs and OSHA logs, they found that many of the claims were the result of injuries from aging and the poor health of the employees. Many were overweight, smokers and engaged in little or no physical exercise. Their less than optimum physical condition contributed to an increased frequency and severity of claims.


Based on their findings, the CWCAs designed a Health & Safety Process for the company that included health risk assessments, health coaching, a Safety & Wellness Committee, safety training, supervisor training and a recovery-at-work program.


Based on the implementation of the Health & Safety Process, the insurance carrier withdrew the "non-renewal" notice. Over a three-year period, the Experience Mod went down from 2.00 to 1.00, while the Workers' Comp premium dropped from $98,000 to $39,000. Medical premiums went up only 4% per year or one-half of the normal medical trend. The success of the program led to writing the client's remaining P&C and Group Health business.