Case Studies
Capital Insurance Group Case Study Redi-Mix
Situation
A large redi-mix operator in Southeast Michigan felt they were over-paying for workers compensation. They went to the marketplace and obtained bids - but all were within six percent of each other. Because they lacked confidence in what they saw as “the risk management and underwriting process” used by these competing brokers, the operator felt these quotes were overpriced.
Problem
The redi-mix operator had two workers’ compensation classes for hauling - one for transporting concrete for their own company, and another classification (much higher) that was used when transporting for others. Because each of the brokers who had quoted their business simply used the existing policy as a template for their new coverages and quote, each of them failed to recognize the difference between these two classes, and the significant dollar impact of it.
Action
Using our comprehensive and reliable risk analysis approach, we completely re-analyzed every aspect of the company’s risk profile. In doing so, we easily recognized the opportunity - and the fact that they hauled for two other companies, that were both owned by the operator. Armed with this information we approached the insurance carrier, and negotiated the lower rate for all hauling.
Results
The Capital difference amounted to a $21,000 annual premium reduction and addition right to the bottom line – an amount equaling more than $350,000 in new business for the operator at their profit margin.
Capital Insurance Group Case Study Stamping Company
Situation
A mid-sized stamping operator was audited and presented with a $30,000 bill because of mis-classification of a portion of its workforce.
Problem
Because their broker simply copied new coverage from the old policy, they perpetuated past mistakes, and failed to recognize when work activities changed. These failures combined to create a situation that could have caused the company to lay- off staff because of the $30,000 audit.
Action
Because Capital never relies on previous data or work done by other brokers, we undertook a comprehensive class code review Using the Michigan Workers’ Compensation Manual. Armed with a thorough onsite review of work practices and a documented comparison of those practices to the manual, we were able to aggressively re-negotiate the results of the audit.
Results
The company received news that their audit had been revised down to $4,000, saving them almost $26,000 – for the current year. And, with Capital’s further analysis of the previous year’s audit, also won an additional revision from the previous year’s audit.
Capital Insurance Group Case Study Millworking Company
Situation
A well-known south-east Michigan mill working company had experienced an increase in the frequency and size of claims.
Problem
Ultimately, the company received news from the state that their mod was raised from a .86, to a 1.09. The company had a safety program, but continued to experience unnecessary and costly claims.
Action
The company heard from a colleague that Capital had successfully implemented claims reduction programs in similar companies, and called us. Our loss-prevention staff immediately began implementing our 7-point safety action plan in the company. Together with an emphasis on back-to- work programs, ongoing claims review, and aggressive loss- prevention, our professionals worked with the client’s staff to craft a program tailored to the client’s needs. We analyzed each and every claim – as well as its cost (reducing some reserves, identifying errors, etc.), and implemented cultural changes making safety a top of mind issue. For example, at the plant level, we installed signs in the plant (at no cost to the client) that said: ”SAFETY IS OUR PRIORITY! # OF CONSECUTIVE DAYS WITHOUT AN INCIDENT.”
Results
As a result, safety became a priority at the company, and as of today, their mod has dropped back below 1.0 – saving thousands of dollars per year in premium, and resulting in a happier (and healthier) work force.
