Almost any broker will reiterate the classical Workers Compensation rhetoric regarding Frequency and Severity, Primary vs. Excess Losses, and how Safety Programs and Training could help reduce both the Frequency and Severity of losses. They will also be able to claim that a given clients Experience Modification Factor (X-Mod) is either under control or out of control based on whether the factor is over or under 100, but will offer little if any REAL assistance aside from offering to monitor it for them (which really means that they will look at the total losses about once a year).
BUT, it is only the truly caring and client focused brokers that will work with their clients to assist them in initiating effective and meaningful OSHA Safety Compliance programs and effective Claims Management to push for and attain real and measurable reductions in their clients Workers Compensation costs.
A local chain of Grocery Stores with more than 12 locations became our client nearly 5 years ago when their X-Mod was more than 160 and they were having more than 40 Workers Compensation claims each year. By providing the client with the materials and information necessary to initiate and enforce safety programs, along with a significant amount of work on the part of our client to enforce the policies and procedures, their X-Mod has decreased substantially and is now below 90. And the even more impressive part is that their X-Mod is projected to be in the low 80s by their 2012 Workers Compensation renewal date (That’s a reduction of nearly 50% in their X-Mod in just 5 years).
A city in Ohio was the subject of a recent newspaper article as they had similar success to that of our Grocery Store client in that they effectively instituted and have now begun receiving the benefits of safety programs when it comes to their workers compensation costs. The City of Ironton was able to see a reduction of over 93% in the dollar value of claims per year in the 4 year period following their institution of the safety programs. Click here to read the article.
This type of X-Mod control that is proven to work effectively and consistently is when the client is provided the necessary information and consultation from their broker in order to be proactive and to make the most educated decisions possible regarding everything from whether or not to offer a Return to Work Program, all the way to purchasing the correct policy based on both price and the services the client may need directly from the carrier – some carriers offer a wide range of loss control, safety training and other services to their clients while others offer little or no added services beyond premium collection and claim payments.
If Workers Compensation Insurance is a Challenge, Talk to the Experts at GDI Insurance Agency, Inc. in Turlock.
When choosing an Insurance Broker, simply deciding based on the lowest price is rarely in your best interest unless that Broker also happens to be knowledgeable, accessible and open to working with and for you beyond merely Quoting your Insurance and collecting your Premium Check.
Not many people simply buy the cheapest car they can find, use the least expensive attorney, or buy the absolute cheapest house they can find, so why would anyone every want to buy their insurance strictly based on price alone?
Matthew Davis MBA, AAI