A middle-market manufacturing company was plagued with a high experience modification factor. This was the result of numerous and large Workers’ Compensation claims, which unfortunately had gotten out of control. Without a process in place to handle the claims, no clearly defined chain of command or anyone to consult with the insurance Carrier on their behalf, the company consulted with Provider Group to help lower their experience modification and get things back on track.
From the moment a claim is made until it’s closed, we advised our client on the importance of putting a process in place to ensure claims are handled appropriately. A chain of command was agreed on, which included the HR Director and Carrier, along with Provider Group guiding the process. Our Workers’ Comp Consultant participated in conference calls with the adjuster and client, and we had conversations with the Carrier where various options were discussed. This all resulted in a more favorable and expedient resolution for the manufacturing company.
Because we’re familiar with the “system”, when the adjuster used technical language we could explain this to our client. We broke down the experience modification factor and explained how this complex formula was calculated. They were one step closer to understanding how to reduce their experience mod.
The importance of seeing things from the employee’s perspective and how to get them back to work ASAP was discussed, as well as the overall financial impact on the company. When a claimant is upset with a slow process they’re more inclined to hire an attorney and the claim can spiral out of control. Proactively addressing issues resulted in fewer claims and faster resolution when they occurred.
After implementing the Workers’ Comp claims management process as well as additional loss control measures, the company’s experience modification decreased by 53%, resulting in a significant reduction of their annual premium.
Although initially the manufacturing company didn’t think they needed a claims management process and their previous broker hadn’t gotten involved with this, they took our advice and were pleased with the results. Their experience modification was reduced from 1.5 to .98 and they view Provider Group as a true partner.
We have numerous phone calls with them throughout the year and multiple in-person meetings. The Managers at the company have benefited from our Workers’ Comp 101 presentation, and now clearly understand what their responsibilities are—and how they can positively impact the company’s experience modification factor.
For more information about our services please contact Patrick Darcey, Principal and Director of Business Development for our Commercial Lines group. He is a Certified Insurance Counselor (CIC) and works with clients to design and implement risk management strategies. Patrick can be reached at 401-671-6355 or firstname.lastname@example.org.