Their Workers Compensation Wasn’t Working
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 instead took two steps backward, as its loss frequency increased by 50% and its 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.
What happened next wasn’t pretty: With its out-sized 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 that the only available Worker’s Compensation market was the Pennsylvania State Workers’ Insurance Fund.
To see if this company was able to get back to normal, please visit http://www.oneminutefromnormal.com/casestudy-2.php#3 KMRD Partners provides risk management consulting and property & casualty insurance to protect against potentially catastrophic losses that wait on the other side of one minute from normal.
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