Articles | Cases



WC Savings for Log Home Distributor Has Company Barking up the Right Tree

» employer

The insured is a privately-family owned company that distributes custom log home component packages. The company employs over 60 people and annual revenues in excess of $11million.

» Situation

The company was seeing significant fluctuations in its Experience Modification Factor, ranging from 1.11 to as high as 1.61, as well as a high annual premium of $48,000 which lead them to attend an educational workshop presented by Certified WorkComp Advisors (CWCAs)


The CWCAs assessed the situation and found the company did not understand how Workers' Compensation claim costs affect the company and had no internal process to monitor or review their claims when they did occur. The company was also working with health professionals who were not up to speed on occupational medicine, a carrier with little expertise in Workers' Compensation, and there was no effective return-to-work program in place. As a result there were open claims remaining on the books and possible unnecessary indemnity payments being made.


The Advisor immediately began working with the company's HR Director and individual department managers to educate them on the entire Workers' Compensation process. They also set up meetings with medical professionals more versed in occupational medicine, worked on an improved return-to-work program, and moved to close any outstanding claims. They also rewrote the company's insurance to a "Workers Compensation only" carrier to provide a focus on loss prevention and claims management. Because of their expertise in Workers' Compensation, the Advisors examined the classification code. In prior years, the company was coded under "lumber yard," with a rate of $6.10. Based on the scope of work, the Advisor was able to able to assign the more favorable classification of "wood preserving," which brought the rate down significantly to $2.95.


The reclassification (which was able to be retroactive to 2009) and ongoing education within the company resulted in a $12,000 credit on its 2009 audit. Their annual premium has been reduced from the $48,000 to $18,400 in 2010. In addition, the Experience MOD dropped to 1.05 in 2010, and is projected to be .94 in 2011, resulting in future savings.