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Water & Sewer Company Sees Its Insurance Heading Down the Drain


A water & sewer contractor with 30 employees and annual revenue of $4 million.


The company was facing a serous increase in its Workers’ Comp insurance premiums and Experience Modification Factor as a result of an unusually large Workers’ Compensation claim (in excess of $60,000) for a company of its size.


Certified WorkComp Advisors (CWCA) researched all aspects of the claim. They discovered that the employee was on company business and on her way to pick up company mail at the local post office. Ice had formed outside the post office. The employee fell and severely injured her knee and shoulder, resulting in the large claim.


The Certified WorkComp Advisor worked with the insurance carrier to subrogate the claim, since the post office had some responsibility for the claim as a third party. Once the claim was successfully subrogated, the CWCA worked with the local ratings board to reduce the Experience MOD, which as a result of the injury claim, had risen from .94 to 1.05.


The employer’s Experience Mod was reduced to 1.0 and there was an aggregated saving in Workers’ Comp insurance premiums of $25,000.

(Note: Subrogation can effectively reduce Workers Comp premiums; laws vary by state.)