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

Landscape contractor sprouts a $104,000 refund

INSURED This major landscape contractor servicing commercial properties employs 120 people and does $19 million in annual revenues.   SITUATION A year after purchasing the company, the insured was concerned why, as a relatively new business, its Experience Mod was extremely high at 1.39, with annual premiums in excess of $400,000.   ASSESSMENT Certified WorkComp Advisors conducted a complete needs analysis on the company, running the gamut from human resources to claims filing. The insured was unaware of how the system worked in regards to ownership changes and it was discovered that the insured had actually inherited the previous owner’s high Experience Mod. Significant aspects of the operation, including the discontinuation of tree trimming, had changed.   SOLUTION Utilizing techniques and information garnered at the Institute of WorkComp Professionals, the CWCA did a thorough investigation of ownership laws and deduced that the insured should not have inherited the previous owner’s excessive Mod rating. Appropriate paperwork was filed with the rating bureau, and the Workers’ Comp Insurance Rating Bureau agreed on the findings.   RESULT After the successful filing with the bureau, the insured’s Mod was adjusted and lowered to 1.0 and a refund of $104,000 in premiums.