Workers’ Compensation insurance can be expensive, but when organizations face increasing X-mod ratings year-after-year, it can mean over-the-top premiums that can devastate a business. For one staffing agency, worker injuries, frequent small claims, and lingering indemnity claims were taking a toll on its ability to remain profitable. So when Kevin Kilcoyne of Barrow Group told them he was confident he could help them save money, they were willing to give it a try.
The Turn Around
The company joined forces with Barrow Group in 2019. Within four years, they dropped from a 1.54 debit X-mod to a .74 credit X-mod! They did this by developing a sound risk management program that included assessing and identifying threats and developing loss/control policies to reduce risk. When an employer runs a safe workplace, which includes emphasizing worker safety and implementing safety programs, that employer will be in a better position to receive a credit X-mod factor against its premium.
Steps to Achieving These Results
Step 1: Employees of the agency were required to undergo safety and health training with the goal of preventing workplace injuries. Barrow Group University offers online classes permitting workers to watch training courses and test their knowledge. Completion certificates can be printed and filed with federal and state regulatory agencies. This demonstrated the employer’s commitment to keeping employees safe at work.
Step 2: The agency implemented early stay-at-work/return-to-work strategies for injured workers. They treated injured employees with compassion and care throughout their recovery and stayed in touch with the worker’s care team. When able, employees underwent safety training helping them understand how they can take part in their own welfare and allowing them to successfully transition back to work.
Step 3: As safety training became a priority, there were fewer injuries. Limited injuries, and an emphasis on Return-to-Work programs, resulted in fewer indemnity claims and existing claims being closed quicker. Wage/loss benefits paid out decreased and employees returned to work faster.
Step 4: The agency partnered with an insurance carrier that offered dividends to policyholders that valued their mission of building safer workplaces. With a low loss ratio, the organization earned dividends of $447,000.
These factors made a difference in the reputation, safety, security and financial success of the organization.
How Do Safety and Health Programs Help Businesses
RPM’s CEO commented,
“When we first met Kevin, we were facing challenges with our experience rating and injury management and RPM was paying costly surcharges on our premiums. He helped us study our historical data, identify areas for improvement, and provided an effective strategy to reach our goals.
We implemented an innovative return-to-work program together, tracked our workplace safety and injury data closely, and that has led to a significant improvement in our performance. Kevin’s knowledge of the staffing industry and workers compensation are unmatched! This has helped us saved hundreds of thousands of dollars since we have partnered together, and we have lowered our NCCI Experience Rating by 80 points!
Many employers don’t realize how much they could save with a specialist that understands the staffing industry. I’m grateful for the valuable knowledge I gained from Kevin and Barrow Group, and I’m glad to have them as a business partner.”
H. Jones., President
|Work Comp Premium
|Feb 18, 2019
|54% higher than average
|Feb 18, 2020
|Feb 18, 2021
|Feb 18, 2022
|Feb 18, 2023
|26% lower than average