Your workers compensation premiums just renewed and your premiums doubled! what just happened?
You’re experience modification just went up! Your agent explains, it’s due to claims. It’s now education time !
Yes, there is this thing called an “Experience Modification” (or… EX MOD) that increases or decreases your premium based on your claims. Unfortunately, at this point, the damage is done.
It takes about 3 additional years to fix this and it took from 1 to 3 years of claims to create it. Unfortunately, those high rates stay with you for 3 years without having any more claims.
Being a business-owner is difficult these days. Your focus is to do more business and reduce expenses. Lowering your expenses enables you to lower your prices AND do more business.
The cost versus reward for taking steps to prevent losses (not just preventing accidents that lead to losses) is key in keeping your rates low and employees happy.
At Roger Stone insurance, we will share with you some very effective ways to reduce or eliminate claims that many insurance agents do not share.
To find out more, call us and ask for Roger Stone for a no obligation consultation today.
Lowering Worker’s Compensation Premiums
The worst way to lower premiums is to put your entire focus on shopping rates each year.
Every carrier providing you a price will apply your Experience Modification (or Ex Mod) factor to their own workers comp pricing. (Your base premiums must qualify you for an Ex Mod)
No matter what you do, no matter how bad someone wants your business, you have an Ex Mod to contend with. If your Ex mod is high, you get a high price.
For example: Company A’s base premium is 100,000 with an Ex Mod of 140%, so they pay $140,000.
Company B has the same base premium, but their Ex Mod is 65%, so they only pay $65,000.
This can put you in a very uncompetitive position.
At “Roger Stone insurance”, we think you should be getting the best rates from all the carriers quoting your business with a low Ex mod.
The key is to recognize the causes of your claims and eliminate these causes.
To do this requires more than just safety training alone.
To find out more, call us and ask for Roger Stone for a no obligation consultation today.
Your company‘s insurance premiums keep rising and you discover that it’s due to an increase in accident claims filed.
You’ve tried to increase employee safety awareness, but there doesn’t seem to be anything you can do to keep these incidents from occurring and impacting your bottom line.
At Roger Stone Insurance, we can help you with workplace safety… and save you money.
We’ll sit down with you to review your current claims and determine why they occurred.
Then, we’ll help you put together a plan designed to reduce or eliminate those incidents, reducing claims and lowering your premiums.
This plan will also address the issue of fraudulent claims and seek to reduce or eliminate those as well. With some careful analysis – and some employee education – your can experience very meaningful premium reductions.
Don’t let the rising cost of an increase in claims delay the growth of your company. call us and ask for Roger Stone for a no obligation consultation today.
Safety Education
The first step in reducing the cost of insurance premiums is getting the number of claims filed under control.
That means better educating employees about the importance of safety on the job.
At Roger Stone Insurance, we have a two-step approach to helping clients achieve this goal.
We begin by conducting a safety awareness meeting with employees, where we discuss the current workplace conditions and the potential dangers.
We then offer strategies designed to reduce or eliminate those dangers in order to bring down the number of claims… and reduce the cost of premiums to the company.
To get employee buy-in to implement these new strategies, incentive plans will be offered, such as paid time off, and Employee recognition rewards for a completely incident free quarter and year.
This gives employees a vested interest in making safety a priority… and can build team spirit in the process.
By increasing employee safety awareness… and incentivizing their cooperation… together you can bring insurance premium costs down.
To find out more, call us and ask for Roger Stone for a no obligation consultation today.
The Right Way and The Wrong Way
You can‘t get your claims under control so you are thinking of taking the following steps to reduce your costs.
You could “lease out your employees from an Indian reservation”
You could “increase your employees payroll to qualify for a lower rate on those split rated classifications”
You could “pay your employees as independent contractors, or ICs”
You could “split your payroll for each employee between employee and ICs”
You could “lease your employees from another company that will share their lower Ex mod with you”
You could “replace a higher cost classification with a lower cost one”
However, all of the above items have been used in the past and are risky.
Have you ever visited an arcade and played “Whack a Mole”?
Moles pop up randomly across the board and you try to whack as many as you can, before they quickly disappear, in order to score points.
Many business owners try to take a similar approach in dealing with accidents in the workplace.
They scurry around trying to close claims and knock down reserves, in order to affect their experience modification rate… but only after those injuries take place.
At Roger Stone Insurance, we believe a better way to manage accidents is to prevent them from happening in the first place.
By educating staff on how accident claims increase Worker’s compensation premiums – and can hurt their employer financially – we can help improve overall workplace safety.
There are several different things we can do to eliminate claims like fraud, unsafe working conditions, stress and poor morale.
To find out more, call us and ask for Roger Stone for a no obligation consultation today.
