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Controlling a claims epidemic saves $117,000


The company manufactures LED lighting assemblies and components and has 350 employees.


The employer's Experience Modification Factor had jumped to 2.54 following what appeared to be an "epidemic" of job-related injuries, most of which were motion related. Workers' Comp costs had skyrocketed, and appeared to increase following several substantial settlements.


Certified WorkComp Advisors (CWCAs) audited the Experience Mod worksheets and were able to reduce the reserves on 24 open cases, resulting in an immediate 10-point drop in the Mod. The account was moved to another insurance carrier, one with an in-depth loss control program. The CWCA and the carrier's Loss Control manager analyzed the situation and determined that ergonomic changes were required, along with the implementation of a loss control program.


Based on their findings, the team revised the company's Employee Handbook with both English and Spanish editions, implemented a return to work program, redesigned work areas ergonomically to avoid awkward postures and positions by using adjustable chairs with foot rests, reduced repetition by cross-training employees to complete a variety of tasks and had them change work stations every two hours so they were performing different tasks and not using the same assembly motions, and introduced a five minute exercise and stretching program that all employees participated in as they moved from one work station to the next.

Also, the team revamped the safety program, established a schedule of regular employee safety meetings, performed regular audits of the Mod worksheets and instituted a process to review and monitor open claims.


The program resulted in a reduction of the Experience Mod from the original 2.54 to 1.39. In two years, with payroll amounts remaining constant, the total Workers' Comp premiums dropped from $245,000 to $128,000. The CWCA also negotiated away and eliminated a "Consent to Rate" on the first policy renewal so that the net annual cost savings to the employer was $117,000.