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Jul 8, 2010

Saving Millions On Your Workers Compensation Insurance

A workers compensation bill is made up of controllable and non controllable costs. Your controllable cost is made up of your Experience Modifier (EM). This EM is applied directly to your bill as a debit or credit. It is this controllable cost where you can save million’s of dollars annually.

Let’s look at a recent case study.

Prior to our recent engagement our prospect had an EM of 200%. Their total workers compensation premium was $1,000,000.

Through a free analysis we helped the prospect establish that their lowest possible EM would be 65%. The client however felt that they would still have a few claims given the nature of their industry. Therefore, the client elected to establish a target result of 85% from their EM.

During the next 4 years, our firm helped the client design, implement, and monitor a program that took their EM from 200% to their new goal of 85%. The client hit their target EM at the end of the 4th year, and saw a reduction in workers compensation costs of $575,000 per year. The company was sold in the 5th year, and a significant return on investment was yielded from the sale in part from the bottom line impact of the new workers compensation plan.

For more information on how your company can benefit from this strategy, drop me an email at

About The Author

Colin D. Baird is Vice President at Sullivan Curtis and Monroe, a Risk Consulting and Insurance Broking Firm. Colin specializes in helping corporations reduce their Experience Mods, and finance and secure workers compensation insurance cover. He focuses on both privately held and publicly traded companies whose workers compensation expense exceeds $250,000. He has been in the Risk Management and Insurance placement business since 1987. He writes frequently and teaches on the topics of workers compensation and the application and reduction of the experience modification. He can be reached at 661-332-0382, or via email to