Implementation of zero lost time program lowers Mod & returns $177,840 to plumbing contractor


The insured is a residential plumbing contractor with 265 employees.

The company was in a transitional stage causing a higher-than-average claims activity. The result was a large number of open claims that included indemnity and an Experience Mod of .98 and rising.

CWCAs reviewed the situation and realized that the Experience Mod was being driven up not only by the number of claims, but also by the number of malingering claims that were not successfully closed. In fact, because there was no injury management process in place, 80% of the lingering claims included indemnity.

Putting the number-one focus on injury management, the CWCAs implemented a Zero Lost Time Program. They set up a model program by creating a transitional job bank, establishing a relationship with the local medical provider, and developing a comprehensive injury prevention package. They also set up educational meetings with all site managers, and created an incentive program built around work safety and loss time.

The company’s loss ratio decreased over a two-year period from 80% to just 9%. Along with a drop in the Experience Mod from .98 to .66, the company received a 25% Experience Credit from the insurance company due to the decrease in the loss ratio, resulting in a total savings of $177,840.


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