Comp-Save Success Stories

Implementation of Comprehensive Workers' Compensation Program Saves Modular Home Manufacturer $5,000 and Lowers Experience Mod

Rib Mountain Glass Discovers Value of Independent Agent

Taking the creative route:
A Divided Mod Saves Contract

Kathy Danen, Business Consultant
Concentrated Employment Program, Inc., Ashland, WI

Old Business Learns New Tricks from Comp-Save Solutions Workshop

Taking the creative route:
A Divided Mod Saves Contract

It’s a well-known fact that a company’s Experience Mod has an effect on its bottom line because of the additional Workers’ Comp costs that result from it. However, sometimes a high Experience Mod can also directly affect how you do business.

An HVAC service company in Wausau, WI, was in danger of losing its largest account. In the interest of promoting onsite job safety, the customer, one of the country’s largest paper manufacturers, had established a policy that it would not do business with any vendor whose Experience Mod was greater than 1.0.

The company could ill afford to lose his largest customer, so the employer turned to one of Wisconsin’s only Certified WorkComp Advisors, Judy Jacobs, for assistance.

“Since the paper company only did business with the company’s Service Department, we broke apart their Experience Mod by departments such as electrical, residential, plumbing and service,” says Jacobs, director of Comp-Save Solutions for Mosinee Insurance in Mosinee, WI. “They sent us the claims numbers and we plugged them into ModMaster. This showed us how each department affected the Mod and what the Mod would be for each department individually.”

In dividing the company by departments, Jacobs discovered that much of the basis for the Mod was from the company’s Residential Plumbing division, not the industrial service division that did business with the paper company. “In fact, we found the Service Department did not have a single claim that contributed to the Mod, which means as a stand-alone company that department would have an Experience Mod well below 1.0,” says Jacobs.

The department’s sub-1.0 Experience Mod satisfied the paper company and enabled Comp-Save’s client to keep the contract. It also inspired the president to bring in Jacobs to teach all of his employees about their roles in controlling Workers’ Compensation costs.