The Stakes: A school bus contractor with 30 drivers thought they had a great deal: a state program offering dividends and preferred pricing. But when a few accidents spiraled out of control, their Mod jumped to 1.079. The program that was supposed to save them money hit them with a 240% surcharge and then dropped them entirely.
The Investigation: The Advisor reviewed the loss runs and found three claims that were completely incorrect. The “preferred” program had failed to monitor the claims, allowing a communication breakdown between the doctors and the adjusters to inflate the costs.
The Breakthrough: The Advisor instituted a “Physician’s Panel” to control where drivers went for care and implemented a “Recovery-at-Work” program. They presented a new business plan to the carrier, proving that the company was now a safe risk.
The Result: The carrier applied an immediate 15% credit. Annual premiums dropped from $80,000 to $65,000, with the Mod projected to drop another 25%.