The Stakes: A rapidly growing nursing home group had acquired multiple companies over five years. The result was a data disaster: loss ratios hit 86%, and the Experience Mod contained $329,000 in errors because the various entities were never properly combined or rated.
The Investigation: The Advisor determined the previous broker was “in over his head.” They untangled the web of companies, identifying which ones should be combined under Rating Bureau rules and which had been reported with payroll errors.
The Breakthrough: The Advisor took over the entire injury management process, centralizing it across all locations. They corrected the combinability errors and implemented pre-hire screenings to stop the bleeding.
The Result: The loss ratio plummeted from 86% to 12%. The corrected Mod and operational savings generated a massive $350,000 reduction in insurance premiums.