How This Plumbing Company Reduced Costs by 31% in Improved Workers' Compensation Strategy

Challenge

The owner of a large plumbing company was paying more than $300,000 annually in workers' compensation premium and a 36% higher rate than other plumbing contractors. With a problematic modification (MOD) factor of 1.36, his company also was more likely to lose large competitive bids and make less money on those jobs he won.

The company's insurance carrier wouldn't return the owner's calls. He asked Hylant for help.

Solution

After strategizing with the business owner, the Hylant client executive implemented the following plan:

• Moved the insurance coverage to a responsive insurance carrier that assigned a single adjuster to manage all claims, streamlining communication and improving service consistency.
• Gained the carrier's commitment to go with the client on periodic loss control visits and to provide guidance on how to reduce the potential for injuries.
• Reviewed claims periodically with the client and the adjuster, offering strategies for getting people back to work sooner and closing out claims faster.

The Hylant client executive also suggested a unique approach to handling claims payment and deductibles, with the goal of improving the company's MOD rate faster.

Today, the company's MOD rating is below 1.0, and the owner is paying 31% less than the average plumbing contractor for workers' compensation coverage.

Working as a team, the client, the insurer and Hylant not only significantly strengthened the company's finances, but also made it a safer place to work.