Implementation of Zero
Lost Time Program Lowers Mod & Returns
$177,840 To Plumbing Contractor
Insured
The insured is a residential plumbing contractor with 265 employees and
annual revenues of $40 million.
Situation
The company was in a transitional stage causing a higher-than-average claims
activity. The result was a large number of open claims that included indemnity
and an Experience Mod of .98 and rising.
Assessment
Certified WorkComp Advisors (CWCAs) reviewed the situation and realized
that the Experience Mod was being driven up not only by the number of claims,
but also by the number of malingering claims that were not successfully
closed. In fact, because there was no injury management process in place,
80% of the lingering claims included indemnity.
Solution
Putting the number-one focus on injury management, the CWCAs implemented
a Zero Lost Time Program. They set up a model program by creating a transitional
job bank, establishing a relationship with the local medical provider, and
developing a comprehensive injury prevention package. They also set up educational
meetings with all site managers, and created an incentive program built
around work safety and loss time.
Result
The company's loss ratio decreased over a two-year period from 80% to just
9%. Along with a drop in the Experience Mod from .98 to .66, the company
received a 25% Experience Credit from the carrier due to the decrease in
the loss ratio, resulting in a total savings of $177,840.
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