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Implementation of comprehensive Workers’ Comp program helps bus company drive down premiums

A school bus contractor with 30 drivers.

The company was enrolled in a special state program for school bus operators that allowed it to receive a safety group dividend and preferred pricing on their Workers’ Compensation rates. Although the bus company didn’t file many claims, there were two or three claims--the result of accidents--that were spiraling out of control. As a result, its Experience Mod jumped from 1.079 in 2004 to 1.782 in 2007. With this increase combined with the insurance carrier’s debited surcharge due to the poor claims experience, the company was paying a 240% surcharge. Ultimately, its Workers’ Compensation coverage was dropped from the carrier’s program.

Certified WorkComp Advisors (CWCAs) reviewed the loss-runs claims report from the carrier and found three claims that were incorrect. The claims had not been closely monitored and no one at the company had kept in touch with the carrier. Thus, a breakdown in communication between the employer, physician and adjuster was creating an unnecessary cost for the company.

The CWCAs took over as the company’s Workers’ Compensation agent and immediately began a thorough review of the existing claims and implemented a plan for filing future claims. They then instituted a light duty return-to-work program and had employees attend a safety seminar that focused on accident prevention and how accident claims can affect the employer’s profit and, ultimately, each employee’s paycheck.

The CWCAs also put in place a physicians’ panel to deal with new claims and had the employer implement hiring tools to avoid hiring potential claims. Recognizing that these steps will control claims, the CWCAs outlined them into a business plan and submitted the plan to the carrier. The result was an immediate savings for the company since the carrier applied a 15% credit to the policy premium.


Through their efforts, the CWCAs were able to reduce the company’s annual premiums from $80,000 to $65,000, while projecting that the Experience Mod will decline by 25% over the next two years.