The Stakes: A non-profit care provider with 512 employees and a $20 million payroll was being crushed by a Mod of 1.71. Their premium stood at $321,734, diverting funds that should have gone to elder care.
The Investigation: The Advisor found the previous agent—who wasn’t certified—had classified staff into eight different codes, creating chaos. Even worse, the auditor had marked the office staff as “no exposure,” a red flag. Internally, the organization had no safety program and a deductible that was too low to discourage small claims.
The Breakthrough: The Advisor proposed a strategic $1,000 deductible to eliminate 75% of the small losses from the Mod calculation. They then called NCCI for a full classification audit, reducing the eight codes down to three. Finally, they implemented “Shoes For Crews” to stop slip-and-fall claims for drivers.
The Result: The Mod dropped from 1.71 to 1.24 in the current year, and eventually to 0.96. Despite payroll nearly doubling to $20 million, the premium stayed flat. Without these changes, the renewal would have been over $587,000. Total Savings: $250,732