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Plastics manufacturer avoids potential increases


A plastics manufacturer with 200 employees and revenue of $30 million.


The company was literally sitting on an insurance time bomb with two large open claims that threatened to cause its annual premiums and Experience Modification Factor to increase dramatically. And they weren’t sure what to do about it.


Certified WorkComp Advisors (CWCA) began an extensive analysis of all open claims by running loss-run reports. They discovered that Claim 1 was open with a medical reserve of $17,000, and Claim 2 was open with a medical reserve of $10,000 and indemnity reserve of $10,000. Further investigation showed that Claim 1 was inactive, but remained open. In the case of Claim 2, the claimant had returned to work and the indemnity reserve was no longer necessary.


As a result of the findings by the CWCA, the file on Claim 1 was closed and the reserve was eliminated. Claim 2 was also closed with the indemnity reserve removed and the medical reserve reduced to $7,000.


With a reduction in reserves of  $30,000, the client avoided a 15% increase in their Experience Mod that would have cost them close to $10,000 annually for the following three years.