The Stakes: An independent grocery store with $20M in revenue was facing a Mod increase from 0.94 to 1.06. The cause was a single large open claim with a $140,000 reserve for a back injury, with the threat of litigation looming .
The Investigation: The Advisor knew that timing is everything. The Rating Bureau takes a “snapshot” of claims on a specific “Unit Statistical Date.” If the reserve was high on that date, the Mod would go up for three years, regardless of what happened later.
The Breakthrough: The Advisor worked with the Safety Director to develop a settlement plan. They convinced the adjuster that the store was serious about controlling costs, allowing them to settle the claim and eliminate the litigation threat before the snapshot date.
The Result: The adjuster reduced the reserve by $100,000 just in time. The Mod stayed at 0.94, saving the grocer $60,408 over the next three years.