IMPACTING LIVES, PRODUCTIVITY, AND PROFITABILITY WHILE
TAKING THE FRUSTRATION OUT OF WORKERS' COMPENSATION!
Statistical Results of the Duncan
Risk Profile Improvement Program
We have a significant number of clients that leverage our complete team of risk managers, health and safety professionals, human resources, and lost time and medical management specialists. These businesses have embraced our Risk Profile Improvement Program including our Zero Culture - Behavior Based Safety program. In essence, our team is "on staff but not on the payroll" of our clients. For those that have been involved in the Risk Profile Improvement Process for at least 2 complete years, we had an accounting firm compile the results below. Our Risk Profile Improvement Program has lead to us slashing premium by over $60,000,000 since 2004!:
61% Reduction in the
Number of Employee Injuries
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Plus...
78% Reduction in the
Number of Lost Time Injuries
61% Reduction in Employee Injuries
+
78% Reduction in the
Number of Lost Time Injuries
=
93% Reduction in Total Injury Costs
Disaster Survivors
Companies that not only Survived, but Thrived!
I would be out of business today if it wasn't for David Leng and Duncan...
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A little after 7am on April 14, 2014, while on vacation in Florida, I got a call on my cell phone that no one ever wants to receive. It was from my alarm company who informed me that my business was on fire. I called my foreman who let me know that everyone got out safely, but my business was gone.
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I am a pretty loyal guy, and was with a trusted, "industry expert" agency for years; somebody who was very active in our industry. I was having some issues with some workers' comp claims, and David's approach sounded so different compared to what I was used to, so I was intrigued enough to talk with David Leng. And I am glad I did!
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I could not help but think, if I was still with that old program, I would be out of business today... I would have been short over $3,000,000 of coverage and would not have been able to rebuild, and would have had to lay off my employees.
We survived being closed for 13 1/2 months and are now thriving today!
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David took the time to understand what our needs were, and totally changed our insurance program, adding coverages we needed to rebuild (better than before) and survive that no other agent provided or pointed out. He also changed how we managed our workers' compensation program, which enabled us to save money even while he increased our coverages dramatically.
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Ken Clifton - Owner, CCF Industries
I am so glad I met with David Leng and the team of professionals at the Duncan Financial Group.
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I used to be the type of person that would get quotes on my insurance every two or three years. Dozens of agents would call me every year, three for four months prior to my renewal, and say they could save me money... get me the same coverage for less, and maybe they would point out holes or gaps in my coverage. When I look back at my old insurance policies, I now realize that if it were up to typical agents and the terrible, traditional quoting process... I would be out of business today.
They came in seven months prior to my renewal and took the time to meet with me and my staff, understand my business, and identify the risks I had in my operation. They put together a Risk Improvement Plan to address our issues. They also overhauled our insurance program to a point where it looked nothing like my old policies, and they reduced my insurance costs as well.
The outcome was beyond belief. Because of Duncan's efforts, which goes well beyond quoting your insurance, not one of my employees or myself missed a paycheck. My business, in its beautiful new facility, is thriving and I am now able to hand this company over to my daughter and eventually my grandson.
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Jack Kirsopp - Owner, Kirsopp Auto Body
Client Results
My workers' comp premium was strangling my company's cash flow. I was in a panic, and trying to obtain as many quotes as I could get my hands on to try and reduce my costs. When I first met David and John, I was about to accept a quote and change insurance companies, during the middle of my insurance policy term, that would save me almost $20,000, which was about 10% of my premium. I allowed them to take a week to analyze my situation, and I was really glad I did!
They saw that if I would have accepted that quote mid-policy year, that my worst claim year would have been on my experience modifier for 4 years and not 3 years. Costing me almost $35,000.
More incredibly, they found that my experience modifier was WRONG!!!! Not one of the dozen plus agents that I spoke to previously saw that! David and John were able to get my experience modifier corrected, and my insurance companies had to return over $86,000 to me!
From the analysis, they saw that we also needed to improve our safety programs, hiring processes, and that WE had to better manage our injured employees instead of relying on the insurance company adjuster. Their entire team helped us implement all of these changes quickly, and 3 months later, he was able to leverage what he did for us and obtain an insurance policy at our renewal that was over $100,000 lower.
In a span of 4 months, they put almost $200,000 back in my pocket!
— Mark S. Duda, Duda Cable & Construction
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Working with Duncan we were able to enhance the safety culture in our organization and reduced our Workers’ Compensation costs by over $300,000 a year.
— Gary Bowser, II., Bowser Automotive Group
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David Leng is very knowledgeable about Workers’ Compensation and a pleasure to work with. His knowledge allowed our company to reduce its Workers’ Compensation premiums by almost 55%.
— Mike Spitznagel, JetNet Corporation
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I first became acquainted with David’s knowledge of Workers’ Compensation when I attended a seminar in 2007. I took the opportunity to meet with David to discuss better ways we could handle not only our Work Comp claims, but how we needed to drastically overhaul our HR processes. The Benefits have been multitude. I have great confidence in ultimately can make a company more profitable.
— Colleen Maize, Kasto, Inc.
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Throughout David’s career he has always been on the forefront of thinking. His understanding of insurance and specifically workers' compensation allow him to see things and establish practices that others eventually follow. David takes an entrepreneurial approach to problem solving resulting in both savings and added protection for his customers.
— J. Kieran Jennings, Esq., Siegel Jennings
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David, you and your team really delivered results! After working with your team for just about a half a year, you dramatically improved the safety of our operation and very quickly reduced our injury frequency. Most importantly, you negotiated with our insurance company and took us from a 15% surcharge to a 15% credit... that’s a 30% drop in our rates!!! You gave us an almost $40,000 reduction in our premium!”
— Bob Mincin, Mincin Insulation Services
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David, you and your East Coast Risk Management team blew us away.
First, your team recovered over $42,000 in overcharges that my agent allowed to happen.
Second, over the next 7 months you overhauled our safety programs and hiring process. Your injury management team minimized a potentially uncontrollable and ugly claim which would have cost us tens of thousands of dollars in additional premium and rehiring costs.
Third, your negotiations with our insurance company resulted in an additional $49,387 (44%) reduction in my workers compensation renewal premium.
We figure you have added over $100,000 to our bottom line in just 1 year.
Thanks!!!!
— Alex Yawny, Odyssey Communications
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9 months ago I hired Duncan and their East Coast Risk Management to implement their Risk Solutions Program. As a result, I just saved $57,494 on my insurance renewal. Duncan met with me and my employees, toured my facility and put together an aggressive Risk Solutions Business Plan. They started implementing immediately and are in our plant several times each and every month.
Working together, we have now taken back control of what was....an "out of control" Workers Compensation Program.
Because of the East Coast Risk Management , I saved 42% of my premium at my very next renewal!
What’s even better…I already know we have even more savings coming next year by continuing to work with them.
— Robert Gottlieb, Gottlieb, Inc.
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David, I just can't thank you enough to finding and return to us the $27,438 in overcharges from our last two years of audits. I only wished we would have be allowed to go back to the prior years to recover money money. More importantly, you provided us a process so that we can avoid being overcharged in the future by the insurance companies.
— Ralph Kemp, ELK Air Conditioning
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I just cannot thank you enough for helping us to take control of our work comp. In addition to making my life easier by helping to manage our claims, your team helped us create a very strong safety culture. Our injuries are down significantly, but more importantly, you helped reduce our work comp premium by over $80,000 a year.
— Lori Bodnar – C Harper Automotive Group
Case Studies
Hover over the a Case Study below to see how you too can reduce your rates and increase your employee`s safety:
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Automobile Dealership Slashes Premiums by over $1,000,000
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Non-Profit overhauls safety, injury management and HR to reduce premium by over $200,000
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School District Improves focus on safety and injury managements and slashes premium 45%
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Home Health Care Company reduces modifier 39% and premium 59%
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Automotive Services company slashes claims, experience modifier and premium by 65% (by $180,000)
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Implementation of Zero Lost Time Program Lowers Mod & Returns $177,840 To Plumbing Contractor
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Automobile Dealer implements Behavior Based Safety and slashes claims and experience modifier , resulting in $219,000 a year in premium reduction (75% Reduction)
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Comprehensive Workers' Compensation Program Cuts Claims Costs
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The Case of the Disappearing Claims
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Supervisor training helps change injury pattern
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Correct medical diagnosis keeps employer from feeling the pain of a mod increase
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Supervisor Training Cuts Claim Frequency and Cost
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Trucking Company On The Right Road by Saving $20,000 in Total Premium
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General Contractor’s Workers’ Comp drops $101,207 in just two years
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Private School Learns a Lesson by Seeing Mod Drop 95 Points
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Implementation of comprehensive Workers’ Comp program saves manufacturing company $40,000
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Injury management program reduces annual losses from $163,675 to $6,074 for machine maintenance company
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Electronics Manufacturer Saves $85,500 in 3 years
Automobile Dealership Slashes Premiums by over $1,000,000
Business
Automotive and Light Truck Dealership with 700 employees and locations
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Situation
Dealership was averaging 36 injuries a year, and $506,900 in claim costs. Experience modifier climbed to 1.403. Faced a renewal offer of $1,647,000.
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Assessment
Upon conducting a Risk Management and HR Assessment, realized that the safety program they had was average, focused on compliance and not truly a safety program. Hiring processes and return to work management were poor.
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Solution
Provided comprehensive services to dealership including Risk Management, Behavior Based Safety, OSHA Compliance, Human Resources and performed Claims Handling for them. Established and facilitated their formal safety committee, changed their hiring processes, and implemented a drug free workplace. Established a frequent repeater program and a Zero Lost Time Program.
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Result
Implemented these changes very quickly making them more attractive to insurance companies and was able to negotiate an offer of $639,000 instead of the $1,647,000 renewal offer.
Injuries went to 10, then 5, then 1, followed by a year without any injuries. Claims costs dropped to averaging $12,600 a year past 5 years. Experience modifier fell to 0.749 and premium was slashed to $284,000.
Non-Profit overhauls safety, injury management and HR to reduce premium by over $200,000
Business
Non-Profit with 400 employees providing daycare for children, transportation for students from economically disadvantaged areas to education facilities and service special needs students as well; Personalized home visits to these areas for in-home education and counseling services
Situation
The non-profit was averaging 44 injuries a year and $215,000 in injury costs a year with a premium of close to $350,000
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Assessment
Reviewed the situation utilizing Risk Management and HR Assessment and realized that the injuries were coming from interactions with the children, as well as from their maintenance staff.
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Solution
Educating management to understand the costs of their injuries enable them to focus on improving safety, hiring, and how they managed their injuries. Implementing new safety processes and programs, new employee orientation including safety and enhanced their child interaction training to learn how to handle an aggressive child.
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Result
The average number of injuries per year prior to implementing everything was 44 and has averaged 6 the past 5 years. Their experience modifier has gone from 1.68 to 0.81 and their premium has been reduce to under $150,000.
Business
School District with staff of 775 employees, including teachers, bus drivers, maintenance, administrative and numerous other categories. Over 6,000 students enrolled in K-12
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Situation
The district was seeing an increase in both frequency and lost time injuries, causing their premium to double.
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Assessment
Risk Management and HR Assessment revealed that the injuries were not only coming from expected areas such as maintenance and food services, but also areas not normally know for injuries, such as the teachers.
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Solution
Educating everyone in the district, from top to bottom including the school board, to understand the costs of their injuries enable them to focus on preventing injuries. Implementing new safety processes and programs, as well as improved new employee screening including functional capacity testing helped reduce the number of injuries Working with the labor unions, created and implemented a robust transitional duty program for injured employees. Working with their HR, improving and adding programs and trainings to make an impact.
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Result
Reduced the annual average of injuries over the past 4 years to 28 from 62 the previous 4 years, and the trend is continuing to improve. The number of lost time has gone from averaging 10 a year to averaging 4. This enable them to be more attractive to insurance companies and reduce their premium by 45%
School District Improves focus on safety and injury managements and slashes premium 45%
Business
Home Health Care with 200+ employees​
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Situation
Healthcare provider was averaging 16 injuries a year, and $211,300 in claim costs. Experience modifier climbed to 1.516. Was offered an insurance renewal premium of $421,000.
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Assessment
Conducted a Risk Management and HR Assessment and realized that their hiring processes as they were having a significant number of injuries in first few weeks of the new hires' employment, many of the injuries were from exposures in their clients homes that created unsafe working environments, and believed they were unable to send injured employees out to work.
Solution
Provided comprehensive services to the Home Health Care firm including Risk Management, Behavior Based Safety, OSHA Compliance, Human Resources and performed Claims Handling for them. Established a pre-employment screening process including fitness for duty exam, implemented a drug free workplace program, created a new home safety checklist and process for addressing unsafe environments, and facilitated their formal safety committee. Established a frequent repeater program and a Zero Lost Time Program utilizing an alternative workplace program.
Result
Injuries went to 10, then 5, then to them experiencing 1 or 2 a year the last 4 years. Claims costs dropped to averaging $14,100 a year past 4 years. Experience modifier fell to 0.925 and premium was reduced to $172,000.
Home Health Care Company reduces modifier 39% and premium 59%
Business
Diverse business with 160 employees and 11 separate locations: Gas/Convenience Stores, Heating Oil Distributorship, Automotive Parts Stores, Automotive Repair Station and Hardware Stores
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Situation
Business was averaging 19 injuries a year, and $113,800 in claim costs. Experience modifier climbed to 1.622. Facing a premium of $278,000.
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Assessment
Conducted a Risk Management and HR Assessment that identified that the safety program they had was average, and hiring processes and return to work management were poor. Also saw a significant number and cost of claims from employees that had multiple claims.
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Solution
Provided comprehensive services to business including Risk Management, Safety, OSHA Compliance, Human Resources and performed Claims Handling for them. Established and facilitated their formal safety committee, changed their hiring processes, developed a new employee handbook and implemented a drug free workplace. Established a frequent repeater program and a Zero Lost Time Program.
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Result
Implemented most of these changes over a 4 month period prior to their insurance renewal, making them more attractive to insurance companies. Was able to negotiate an offer of $193,000.
Injuries fell to 11, then 5, then 2, followed by three years without any injuries. Claims costs dropped to averaging $2,800 a year past 5 years. Experience modifier fell to 0.797 and premium was slashed to $98,000. A reduction of $180,000 and 65%
Automotive Services company slashes claims, experience modifier and premium by 65% (by $180,000)
Implementation of Zero Lost Time Program Lowers Mod & Returns $177,840 To Plumbing Contractor
Business
Residential plumbing contractor with 265 employees and annual revenues of $40 million.
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Situation
The company was in a transitional stage causing a higher-than-average claims activity. The result was a large number of open claims that included indemnity and an Experience Mod of .98 and rising.
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Assessment
Reviewed the situation through a Risk Management and HR Assessment to realize that the Experience Mod was being driven up not only by the number of claims, but also by the number of malingering claims that were not successfully closed. In fact, because there was no injury management process in place, 80% of the lingering claims included indemnity.
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Solution
Putting the number-one focus on injury management, and implemented a Zero Lost Time Program. Set up a model program by creating a transitional job bank, establishing a relationship with the local medical provider, and developing a comprehensive injury prevention package. Also set up educational meetings with all site managers, and created an incentive program built around work safety and loss time.
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Result
The company’s loss ratio (Losses to Premium) decreased over a two-year period from 80% to just 9%. Along with a drop in the Experience Mod from .98 to .66, the company received a 25% Experience Credit from the carrier due to the decrease in the loss ratio, resulting in a annual savings of $177,840.
Automobile Dealer implements Behavior Based Safety and slashes claims and experience modifier , resulting in $219,000 a year in premium reduction (75% Reduction)
Business
Automotive and Light Truck Dealership with 200 employees and two separate locations
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Situation
Dealership was averaging 24 injuries a year, and $194,700 in claim costs. Experience modifier climbed to 1.483. Was facing a renewal offer of $292,000.
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Assessment
A Risk Management and HR Assessment showed the safety program they had been utilizing a safety company that was focused on the business meeting OSHA requirements. This focus was on compliance and not truly a safety program. Hiring processes and return to work management were poor
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Solution
Provided comprehensive services to dealership including Risk Management, Behavior Based Safety, OSHA Compliance, Human Resources and Claims Handling. Established and facilitated their formal safety committee, changed their hiring processes, and implemented a drug free workplace.
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Result
Injuries went to 16, then 7, then 3, then two years with 0 injuries. Claims costs dropped to averaging $4,200 a year past 5 years. Experience modifier fell to 0.727 and premium was slashed to $73,000. A reduction of 75%
Comprehensive Workers' Compensation Program Cuts Claims Costs
Business
Masonry contractor with 30 employees and annual revenue in excess of $3 million. The company constructs residential brick walls, patios, sidewalks, floors and driveways
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Situation
In a three-year span, incurred injury claims losses of $123,107. As a result, the employer saw her company’s Experience Modification Factor (Mod) rise 50%, from 0.91 to 1.37.
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Assessment
The Risk Management and HR Assessment of the business' Workers' Comp program found that the employer was “shopping for rates” to save money on Workers’ Compensation coverage rather controlling work-related injury costs. Despite focusing on cutting premium through "shopping", their premiums continued to climb. The lack of focus on the situations causing their injuries led the employer to have no written policy for dealing with employee injuries, safety, and hiring.
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Solution
Addressed these cost issues in several ways. First, implemented an “indemnity review” process that helps the employer to determine when to self-pay indemnity costs. Next, provided the employer with an employee handbook that, among other things, spells out in writing an injury-reporting program that requires immediate notification upon occurrence of an injury and a return-to-work program that defines the “light duty” jobs – such as inventory work – that employees will perform if physically unable to perform their regular jobs.
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Result
Since then, the employer has not filed a claim for employee injury losses. Self-paying indemnity alone will save the company up to 70% of its total claims costs. In addition, the written reporting and return-to-work policies have significantly cut the number of work days lost while the clinic relationship program keeps everyone – the employee, employer and medical provider – informed about the employee’s recovery and working towards the employee’s return to full duty.
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The Case of the Disappearing Claims
Business
Fit and finish contractor with a $1.2 million Workers’ Compensation annual premium. Because of financial issues, the company does not meet self-insurance requirements.
Situation
The company’s Workers’ Compensation claims amounted to $535,000. Much of the difficulty in managing the claims process resulted from the fact that the company operated crews in some 50 work sites at any given time.
Assessment
The Risk Management and HR Assessment analysis found mistakes on the company’s Experience Modification worksheet, a poor claims management process, and frequent injuries occurring with new hires.
Solution
Introduced Post Hire/Pre-Placement processes; Medical Clinic Selection protocols and a Supervisor Claims Responsibility Management Program with the support of a trained management process. Supervisors and a new Workers’ Comp Claim Manager were trained in how to control claims including two critical issues:
The supervisors were shown claims reports so they could see what the premium costs were doing to the company’s bottom line.
The company’s new Work Comp Claim Manager effectively managed claims and monitored their Early Return-to-Work program.
The management processes plus the Supervisor Claims Management Responsibility program was then further enhanced to make certain the dramatic gains would continue:
Each supervisor without a claim during a 12-month period receives a bonus.
Each year, individual supervisors are given a claims budget and they must stay within that budget to qualify for the annual bonus.
Result
A year after the program was put into place, Workers’ Comp claims had dropped to $13,000. Plus, by focusing on back to work malingering claims that occurred previously and were still open, reduced claim reserves by over by over $127,000 and lower their new Experience Modification Factor.
Negotiated a Retrospectively Rated Insurance Program for the business that enabled them to reduce their insurance costs to averaging less than $250,000 a year.
Even difficult Workers’ Compensation situations such as this one can be turned around with the proper expertise and installing a process that changes the culture and delivers continuous results.
​Supervisor training helps change injury pattern
Business
A manufacturing company with 175 employees, total salaries of $6.6 million and annual revenue of $14 million in 2005.
Situation
Risk Management and HR Assessment revealed that over 6 years the employer’s average annual Workers’ Comp costs were in excess of $80,000 per year. During that same period the manufacturer averaged 35 claims per year, causing the Experience Mod to rise to 1.12.
Assessment
Reviewed the client’s Workers' Comp program and found that the employer had no established return-to-work program nor did he have a policy regarding the reporting of on-the-job injuries. Also found that the supervisors in the manufacturing plant were unaware of how Workers’ Compensation works and how they can have an impact on the employer’s costs.
Solution
Began by implementing the basic programs developed by the Institute of Workers' Comp Professionals including return-to-work, light duty assignments, employee-hiring practices and injury reporting procedures. Then held an education session for supervisors that proved to be the most enlightening part of the program. Explained how the Experience Mod worked and how it was affecting the employer’s bottom line. Also discussed the importance of the return-to-work program and how supervisors, since they have the most direct contact with the employees, play a significant role in keeping the overall claim dollars down.
Result
Just six months into the current policy term, there have been only six claims, three of which were for reporting purposes only with no dollars paid. The cost of the remaining three claims has totaled only $3,200. While it’s too early to make comparisons with previous years, it appears that the supervisor training is paying off. During the mid year review, several supervisors said they had brought what they had learned in the first meeting back to the employees and were able to see a marked difference in attitudes. The supervisors and employees now see that they are truly a part of the process and how they can help make the company for which they work more profitable.
Correct medical diagnosis keeps employer from feeling the pain of a mod increase
Business
Water and sewer pump company and employs 27, locally. There are additional employees in two other states as well.
Situation
An employee had undergone gall bladder surgery in late January. He was released back to work full duty (without restrictions) three weeks later. On his second day back to work, this employee was moving some cross ties and herniated his healing surgical incision, necessitating further medical and surgical interventions.
Assessment
Began investigating this claim and determined further assessment was necessary. An independent Registered Nurse with experience in occupational injuries was engaged and began an investigation. After reviewing the circumstances of this injury and speaking with the employer to get specifics about the employee’s recent abdominal surgery, the nurse concluded that the herniation was a result of complications from the surgery.
Solution
The independent nurse alerted the carrier to this determination and the claim was denied under Workers’ Comp. The carrier agreed that this herniation was a complication of and was directly related to the recent abdominal surgery. The claim was instead submitted to the employee’s health insurance plan for coverage.
Result
This claim was closed in less than three weeks, saving the employer the cost of medical care and potential future wages. Disability guidelines report that a typical uncomplicated incisional hernia costs an average of $21,102 ($10,001 in indemnity and $11,101 in medical expenses). Had this claim been accepted under Workers’ Compensation, it would have increased the employer’s Experience Mod eight points, or a total of approximately $15,000 over three years (based upon the rate & payrolls remaining constant over the three year period).
​On-the-Ball Injury Management Lowers Reserves and Saves $$$
Business
New home contractor.
Situation
An employee suffered a laceration to his finger while using a saw. The carrier set the highest possible reserves for disfigurement, permanent loss of use, and temporary disability warranted for this type of injury.
Assessment
Knowing that insurance carriers routinely set high reserves on claims and keep those reserves active until the claim is closed, goal was keep close tabs on every aspect of the claim. Along with skilled in-house claims specialists, worked with the employer, medical providers and claims adjusters to continually assess the case and adjust reserves accordingly.
Solution
As soon as the employee was released to full duty, asked the insurance carrier to remove any remaining reserve for disability. A short time later, the carrier made a payment to the employee for scarring, requested they remove any remaining reserves for disfigurement. Later, argued successfully to lower reserves for permanent loss of use.
Result
By the business' next experience modifier valuation reporting date, reserves on this claim had been lowered by more than $57,000. As a result, the client’s experience mod rating was 19 points lower than it otherwise would have been. This translated into a premium savings of more than $4,000.
Trucking Company On The Right Road by Saving $20,000 in Total Premium
Business
Trucking Company
Situation
High rate, modifier and large number of employee injuries causing a larger premium of $800,000 when it was $340,000 5 years ago.
Assessment
a Risk Management and HR Assessment quickly showed that there was no return-to-work program. Claims Analysis showed employer the true cost of the insurance company paying indemnity to injured employees.
Solution
After reviewing the return-to-work options, the trucking company decided to no longer outsource its security guard function, but make it a “transitional duty” job. Injured workers sit in the booth and collect paper work from incoming trucks. Another light duty job involves scanning the bar codes of boxes as they pass on a conveyor belt. By putting a chair on wheels, the employee simply sits and presses a button as the box goes by.
Result
Self insuring the transitional duty on one case alone, the $14,000 in indemnity reduced the premium by $68,000 over a three-year period. Within 3 years, premium was down to $440,000 and $290,000 in 5 years.
General Contractor’s Workers’ Comp drops $101,207 in just two years
Business
A commercial general contractor with 110 employees and revenue of $52 million in 2006.
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Situation
A 62% Workers’ Comp surcharge drove up the company’s Experience Modification Factor jumped to 1.12, costing them an additional premium of $185,000 per year. It also restricted them from bidding work for large corporations that required a 1.00 or lower Experience Mod.
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Assessment
During the Risk Management and HR Assessment, the Experience Modifier Analysis revealed both an error and that it was being mismanaged. The Loss Analysis of the loss data from the previous four years and OHSA logs revealed that the number and severity of claims were significantly higher than industry averages..
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Solution
Showed the general contractor how they were paying the insurance company $3 for every $1 paid in claims. Designed an aggressive rehab plan of action: installing a safety committee, including training and recordkeeping, providing administrative support for the company by running the WorkComp process, and training the safety coordinator. In addition, worked with the client in establishing a relationship with Occupational Medical Center, initiating a claim reporting system and a return-to-work process. Assisted in completing necessary job descriptions.
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Result
Experience Mod went down from 1.21 to 0.93, with a projected modifier of .90. Because of a radical reduction in the number and size of Workers’ Comp claims, additional discounts were negotiated, lowering the premium cost from $430,302 to $394,000 in the first year and $365,318 in second year of working with them.
Implementation of comprehensive Workers’ Comp program saves manufacturing company $40,000
Business
The insured is a wood products manufacturing company that employs more than 40 people divided into three work classes – sash/door/assembly millwork, sales people and clerical. The company works one shift, has a very stable workforce and consistently produces a high quality product.
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Situation
Although the company has a highly competent management team, the Risk Management and HR Assessment, revealed that claims were being left up to the insurance company to manage and close. Open claims were found that resulted in a higher experience modifier and higher premiums. One claim in particular had no activity for over a year and was adding seven points to the experience modifier. The insurance company also failed to explain the importance of a transitional duty program.
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Assessment
Reviewed the loss runs prior to the employer’s renewal. Found open claims with no activity that could be closed prior to the renewal. The company was sending the injured worker home to recuperate versus returning to work on a transitional duty job.
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Solution
Implemented a risk management plan that included, among other components, detailed procedures for returning an injured employee to work. They also aided the client in proper follow up procedures with the insurance companies to get claims closed.
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Result
Because the plan showed the promise of significantly decreased claim costs, the wood products company became more attractive to other insurance companies. By being more insurable, it was able to secure more services and better pricing, reducing their annual premium over $15,000.
On one claim alone, the insured saved more than $3,000 as a result of the improved management.
Injury management program reduces annual losses from $163,675 to $6,074 for machine maintenance company
Business
Machine maintenance company employs 130 people in five states and has annual revenues of approximately $9 million.
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Situation
Because the company is a multi-state risk, injury management was becoming a problem, especially since there was no on-site claims supervisor at any of the locations. The result were claims totaling $163,675 in 2005.
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Assessment
Following the completion of a Risk Management and HR Assessment, determined that the company needed comprehensive injury management services. The company had a great HR department but lacked the needed knowledge for handling claims and management did not realize how each claim affected the overall cost. Therefore, a plan was developed to treat each situation as if all the employees were under one roof.
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Solution
A four-step process to handle employee injuries in multiple locations was established:
Trained a Designated Claims Coordinator to oversee ALL claims, instead of processing claims through individual HR Departments.
The Claims Coordinator is proactive and is the key contact with the injured worker, medical staff, HR Department and insurance adjuster.
Initiated a medical-clinical relationship in each state.
Implemented a Zero Loss Time program by having jobs inter-related to expedite a quicker return to work.
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Result
By working with them, the company saw losses of $163,675 drop to $18,611 the next year, and $6,074 in the following year. In addition, the experience modifier which was at 0.97 is expected to drop to 0.83 that will result in an annual savings of $51,334.
​Electronics Manufacturer Saves $85,500 in 3 years
Business
The business is an electronics manufacturer. The company employs 110 workers and has gross revenues of $30 million.
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Situation
After splitting from a large national manufacturer, the company saw its experience modifier jump to 1.45, causing uncompetitive labor costs and a loss of profitability.
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Assessment
The Risk Management and HR Assessment determined that the increase in the experience modifier was a result of an increase in the severity of repetitious injuries to hands and wrists, due to the type of light assembly work involved. The experience modifier was also being driven up by a number of malingering claims and too much reliance by the manufacturer on their insurance company to manage the claims after they happened, resulting in higher premium costs. The manufacturer had no established return-to-work procedures nor 24-hour claim reporting requirements.
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Solution
The focus was on lowering the severity of the hand and wrist injuries and improving the outcome of the malingering claims. Set up an occupational clinic relationship with pre-employment testing, including grip testing to eliminate potential future claims. A clinical relationship was also put in place for existing claims, set up a return-to-work process and made the clinic aware that light duty was available as a return-to-work option. This assured early intervention, proper medical treatment and a speedier return to work. Trained supervisors on 24-hour reporting requirements and the impact that Workers’ Compensation has on the employer’s costs, and started regular safety trainings. Furthermore, worked with management to demonstrate the value of this process by showing them how much money they would save.
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Result
Malingering has been eliminated and outcome from severe claims has been reduced from $35,000 to $6,500, resulting in premium savings of $85,500 for three years.
Private School Learns a Lesson by Seeing Mod Drop 95 Points
Business
The insured is a large non-profit school for physically and mentally-challenged students operated by Catholic Charities. It has 96 students and 400 employees.
Situation
The school was being canceled by its existing carrier of 45 years because of a poor history resulting in a 300% loss ratio and a Mod tipping at 1.88. The finance manager was only able to secure a quote of $500,000 (the school had previously been paying $133,000.)
Assessment
A Risk Management and HR Assessment, revealed that their situation was predicated on a lack of injury management. It would often take up to 37 days to report an injury, and once an injury was reported, there were no procedures in place as to the next steps. Both the Human Resources and Finance managers were new and had inherited existing problems.
Solution
Meetings were held with both the HR and Finance Managers with the first order of business was to quickly make this organization wore attractive to insurance companies by addressing several key issues driving their claim costs. A five-step plan was then put into place for the school:
Create a Safety Committee to establish a list of light-duty jobs to help an injured worker return to work sooner.
Utilize the services of a Registered Nurse who was on duty at the school instead of automatically calling an ambulance for every injury (it was determined the injured worker could often receive a higher level of care from a RN than the EMT).
Conduct employee-training sessions about what Workers’ Comp insurance does and does not do. By doing this, loss time was reduced, as both managers and injured parties learned the benefits of the return to work program.
With those programs implemented, a carrier was secured at $300,000.
Result
With everything in place, the number of loss-time injuries was significantly reduced, bringing about a six-figure decrease in premiums every year and an overall savings of over $500,000 in premiums in the last four years. The Experience Mod also dropped from 1.88 to .93.