The Stakes: A manufacturer with 25 employees saw their premium double in three years, hitting $50,000. Their Mod had spiked to 1.26, driven by a constant stream of 10-15 minor claims per month.
The Investigation: The Advisor found that the company was using its insurance policy like a maintenance plan. Tiny claims—like sawdust in the eye—were being filed as insurance losses, driving up the frequency score.
The Breakthrough: The Advisor implemented a $2,500 deductible. This meant the employer paid for the minor “sawdust” incidents out of pocket, keeping them off the loss run entirely. They also trained supervisors to report major injuries immediately to minimize lag time.
The Result: The Mod dropped from 1.26 to 0.89. The premium fell from $50,000 to $28,000—a 44% reduction.