Case Study 2.0: Workers' Compensation Their Workers' Compensation Wasn't Working For the past four years, Thresher Manufacturing chased price while shopping its Workers' Compensation policy from broker to broker. With each supposed step forward Thresher took two steps backward, as its loss frequency increased by 50% and it's claim costs increased by 30%. Add to this the fact that the company's Workers' Compensation Experience Mod increased from .85 to 1.35 as a result of increased frequency and loss severity. With premium costs spiraling out of control, Thresher was paying 35% a year more than an average account that was the same size and class exhibiting a 1.0 Mod. To see what happened to Thresher, click on One Minute From Normal One Minute From Normal and Counting With its outsized Workers' Comp premiums running up the cost of doing business, Thresher found itself at a serious competitive disadvantage that was threatening the continued viability of its business. What's more, the company was excluded from submitting RFPs on certain jobs due to its elevated Mod. The situation deteriorated so far the only available Worker's Compensation market was the Pennsylvania State Fund. To see how Thresher got back to normal, click on Solution Getting Back to Normal Thresher recruited a new COO whose broker fielded an RFP to Zenith National Insurance, the workers' compensation specialist. During the first year, Zenith's Safety and Health worked closely with Thresher to establish a formal certified safety committee that will entitle Thresher to a 5% premium credit at renewal. With the assistance of Zenith Safety & Health Consultants, Thresher designed and implemented lifting procedures. This resulted in no back claims during the first year, which had been Thresher's most costly claims. With the assistance of Zenith Safety & Health, a formalized Return-To-Work and Light Duty policy was established. As a result, two lost-time claims were avoided and the average loss time of injured workers was slashed from 49 days to 14 days. Zenith claims established a Medical Panel at policy inception and a policy of securing signed employee acknowledgement forms before and after losses. As a result, employees had access to quality care with Return-To-Work oriented health practitioners. Medical savings of 55% of billed charges were obtained through Zenith's PPO networks and bill adjudication. Through Zenith's online resources, Thresher gained access to a variety of free Risk Management resources including bulletins, paycheck stuffers and educational webinars. Staff can also review the status of their claims and financial details. Thresher's experience has been typical for Zenith customers. The company has a proven track record of helping customers drive down the cost of insurance. Almost 80% of Zenith (Northeast Region) customers with the full benefit of Zenith experience saw: Reduction in experience mod Reduction in premium Contact KMRD Partners to get back to normal with your Workers' Compensation coverage.