7 Secrets that Cost Your Client a Bundle on their Workers' Comp

CWCAs find reserve error and help bank control Mod


The insured is a large community bank with 30 branches, 400 employees, and assets in excess of $850 million.


A 12-year client, the bank had a comprehensive Workers’ Comp program and an excellent claims history, with an Experience Mod that averages between .80 and .85. Based on a verification process that included reviewing Experience Mod worksheets, the 2007 Experience Mod was expected to be .838 with a manual premium of $35,000. Yet, it was much higher than what had been projected, showing instead a .239 increase to the Mod, the equivalent of a premium increase of $8,365.


Through the efforts of the CWCA, it was determined that a large claim had been previously settled but was still showing as active. The carrier neglected to remove the reserve of $25,000 from the claim, resulting in Mod and premium increases.


Recognizing that there was no reason for the increase, the CWCA investigated and discovered the error, called the insurance carrier and had them file a corrected report.


Through the CWCA’s efforts, the Mod reduced to the projected .836, saving the client $8,365 or 23% of premium.