Workers' Compensation Policy Writing Services Case Study

Challenge: A wire manufacturer had one workers’ compensation claim which had escalated in cost over time before closing. Unfortunately it had affected the company’s experience modifier (X-Mod) rating causing it to increase to a level of 165.

When the X-Mod was applied to the prevailing work comp rate which was already considered high, the cost to provide workers compensation insurance to the majority of the company’s workforce jeopardized the operating stability of the company.

Solution: Applied Workforce Outsourcing’s Risk Transfer Program into the employment model of the company Blend “Contingent Staffing” into the regular employee population of the company.

Through an administrative transfer of the wire manufacture’s entry level production employees onto the Workforce Staffing payroll, the company was able to realize:

• An immediate reduction in the company’s overall monthly premium.
• A savings in total employment cost since workforce did not have to apply the X-Mod to their own internal workers’ compensation rate.
• Minimal exposure to future workers’ compensation claims since the majority of claims took place with entry level production employees and were now
• The X-Mod was reduced over time since there were fewer employees who were classified under the client’s work comp policy. Those who remained under the clients FEIN were tenured production supervisors and clerical people who were less susceptible to injury.
• Unemployment claims were reduced since the high turnover positions were transferred to the Workforce Outsourcing payroll.