A wholesaler/manufacturer went through a rapid growth period, but unfortunately didn’t have hiring controls in place or adequate safety procedures to govern the increased staffing. Consequently, there was a surge of workers’ comp claims because perennial workers’ comp claimants were inadvertently hired.
As a result of the claims, the company was placed in “the pool”, and the only insurance available to them was through the Assigned Risk Pool (MA Workers’ Comp Plan). Their experience mod increased, which caused their premium to increase by 65%. The company turned to Provider Group to bring their safety procedures in line and help them get out of “the pool”.
Provider Group developed a strategy to address the problem, and ultimately get them out of “the pool”. In addition to developing stricter hiring guidelines, our approach was to utilize the loss control resources from the current carrier along with our OSHA certified trainer. Although the company had recently hired a new loss control manager, the policies and procedures weren’t cohesive throughout the company. They were more reactive in nature and issues were dealt with as they arose. We created a detailed assessment of over 35 pages, which included a range of recommendations as specific as guidance about their wall outlets to broader topics such as the organization of their safety files and procedures for signing off when a change is made.
Our Safety Consultant reviewed the client’s loss runs and became very familiar with the company. Procedures were implemented to ensure that past safety violations wouldn’t occur again. Areas for improvement were prioritized and the urgent violations were immediately addressed, while less significant issues were scheduled to be taken care of at a later date. The formal Safety Program included five major safety items to focus on, and because it’s important to be proactive, we also introduced formal driving and vehicle maintenance programs.
Our Consultant visited the company each week during the first year to ensure that the procedures were being properly implemented, and to answer on the job questions.
Our client now has a formal safety program, and their experience mod has been dramatically reduced from 1.49 to .85! They’re reaping the benefits of the Safety Program, and anticipate a further reduction of their mod to .80 this year. Since implementation of Safety Program and procedures, the company has had four straight years of very good claims experience.
The client appreciated our hands-on approach, understanding of their culture, and familiarity with their company—which gave us insights into what would be effective to help turn things around. Our comprehensive, proactive review and implementation of a Safety Program has resulted in a reduction of workers’ comp claims, a more stable environment and lower premiums for our client.
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.