Employers: When is the last time you looked at your insurance costs? Do you know what your premiums are? What is your ex-mod? Do you know if your company could be saving money? Let me share a story with you on why it’s important to know these details!
Here’s the story:
I took control of a large hay operation via a broker of record change in 2022. So, I got to work reviewing the client account details and learned that an employee of the operation was in a company auto accident.
We discovered:
The client had an auto claim with an estimated reserve cost of $500K, which showed up on their workers’ compensation claim report. Due to past claim experience, they had incurred a 153% experience modification factor (ex-mod) for the 2023-2024 policy year. (High ex-mod = paying more for insurance than your competitors!) Prior to our involvement, the 2024-2025 ex-mod was projected to be 149%.
Details of the auto claim:
The employee of our client was sitting at a red light in a company auto, waiting for the light to turn green. The employee was rear-ended by another driver who was traveling over 50 mph when hit. The impact of the crash created significant injuries to the employee. The claim manager assigned an estimated value of $500K for the injury.
How we took action:
We immediately got involved with the carriers’ claim management team to investigate why the claim was outstanding. With a lot of back and forth and many discussions, we were able to get the carrier to subrogate the cost of this $500K claim to the driver who hit our client’s employee with their own insurance carrier. This was a HUGE win for our account. Due to all the hard work, we were able to reduce the claim to $18,237.
Results and the savings for our client:
We helped reduce the claim from the original amount of $500K to the new revised figure and reduced the client’s ex-mod from 149% to the current 130%, saving the account $15,497!
This is a real-world outcome for what we do at 28 Insurance Agency. We take the time to learn about our client, their needs, and understand the risks that they are facing. Then, we create a strategic plan to help lower their premiums, reduce risk, and help them take control back from the insurance carrier. If we had not been involved, this client would have not realized the impact of their insurance costs. They would have assumed that they had a competitive price.
Do you know if you have a competitive price?
What’s the risk of having us review your insurance
to see if you have any hidden savings?
To learn more, contact me at 530.681.1981 or ckolb@28ins.com
