Our number one goal is to help you protect your people on the job. We know that keeping your employees safe is its own motivator. But we’re also proponents of helping business owners understand how investing time and money in safety delivers a return for your business. Let’s explore how to lower your company’s e-mod and reduce your premium by putting safety first.
How we calculate your premium
Calculating premium can be complex, but it’s not a mystery behind a curtain. Three main factors determine your premium: payroll, classification rate, and experience modifier (e-mod). Your payroll and class codes might change over time, but you can’t really control them with the purpose of impacting your premium. On the other hand, you can do exactly that with the third variable: your e-mod.
Your e-mod uses your business’s past loss (claims) experience to predict your future losses. If your e-mod is lower than 1.0, it means your losses are expected to be better than your industry peers. If it’s higher, it means your losses are worse than average – and you can expect to pay higher premium than your peers and competitors.
Three real examples of lowering e-mod to save on premium
We’ve been helping our policyholders improve safety for more than 25 years and our results speak for themselves. Here are three stories about real businesses (given pseudonyms in this post) that reduced their premium by improving safety and reducing their e-mods.
Problem: Roofing comes with inherent risks of falling and is the fourth most dangerous job in the U.S.
Solution: Helping XYZ Roofing reduce their e-mod began with jobsite observation and ended with helping them develop solutions to keep their employees safe, including:
- Began quarterly meetings with our Safety and Risk Services (SRS) Team.
- Developed pre-work safety training and a jobsite specific fall protection system checklist with SRS assistance.
- Utilized our safety resources.
- Developed a managed medical care solution with our Claims Team.
Problem: Manufacturing is often repetitive. Rectifying problem areas while trying to achieve the desired production levels can be challenging.
Solution: Helping ABC Manufacturing was all about connecting them with our experts to develop a focus on safety within the business. Changing their safety culture included:
- Developed a plan to report claims within 24 hours to increase efficiencies and reduce costs.
- Utilized our Report Only option by paying small medical only claims out of pocket. These claims do not count against their e-mod.
- Worked with one of our Signature Partner Agencies that reinforced the importance of safety.
- Utilized our SRS team to identify hazards and prevent repeat injuries.
Support Services LLC
Problem: Providing support services for homebound patients can expose an employee to many hazardous situations.
Solution: Support Services LLC experienced several years of high losses and had the need for better safety equipment. Their solution included:
- Applied for and received two MEM Safety Grants for new safety equipment.
- Developed an active relationship with our SRS Team.
- Utilized our Return to Work resources to develop a light duty alternative to help get employees back to work.
Save on premium with the right work comp partner
When choosing a work comp carrier for your business, look for a partner that invests in your success. As a safety-centered insurance company, we want to help you reduce your premium by improving your e-mod! Preventing workplace injuries is our shared goal and it benefits everyone.
How do you know if your carrier is committed to this goal? Check out our post How to Measure the Total Value of a Workers Compensation Policy.