The Stakes: An ownership group running five hotels with 2,000 employees watched their premiums climb to $1.8 million. Because each hotel was rated independently, they were paying maximum retail rates, and ownership couldn’t understand why costs were spiraling.
The Investigation: The Advisor suspected the structure was inefficient. They analyzed the ownership documents and the Mod worksheets for all five properties.
The Breakthrough: Using NCCI combinability rules, the Advisor determined the hotels were eligible to be rated as a single entity. This would allow the positive safety record of the better-managed hotels to offset the others, drastically lowering the overall rate.
The Result: The Advisor worked with the Rating Board to retroactively combine the ratings. The Experience Mod dropped from 1.26 to 0.84, generating a stunning $822,808 return in premiums.