Minding the safety of temporary workers not only pays off in fewer accidents and injuries but is also one of the simplest ways to save substantially on workers’ compensation costs.
This case study documents the success of IMKO Workforce Solutions, a client/partner of Barrow Group. By decreasing their NCCI experience rating, they have lowered their average workers compensation premium by hundreds of thousands of dollars.
What is an Experience Rating
The NCCI experience rating (also known as a modification factor) is the most important aspect in determining the cost of workers’ compensation insurance. The experience rating is based on an employer’s actual incurred injuries and claims and compares it to average injuries and claims by similar types of businesses. An average experience rating is 1.00.
A mod factor greater than 1.00 is a debit mod, meaning that your losses are worse than expected and a surcharge will be added to your workers’ compensation premium. A mod factor less than 1.00 is a credit mod meaning your losses are better than expected resulting in a discounted premium.
Through a dedicated team effort, IMKO Workforce Solutions has earned an NCCI Rating of 0.53 for 2022, which is their lowest ever! This factor is used to adjust workers’ compensation premiums and reflects the expected loss by a company. They are starting out with a 47% competitive advantage over the average mod rating of 1.00
Here are ten attributes that can help staffing companies save on workers’ compensation premiums:
Barrow Group has helped several staffing agencies save on their premiums, but those that succeed follow “best practices” for creating a safety culture. Staci Thornton, CFO and Co-owner of IMKO Workforce Solutions commented,
“I believe Kevin’s knowledge of our industry and the insurance industry has not only saved us thousands of dollars but helped us become a better, more competitive, staffing company. He is always available and willing to go above our expectations. He is a great communicator and has become a trusted associate.”
IMKO Workforce Solutions X-Mod Rating