Case Study: Landscape Contractor
A landscape contractor with 120 employees carried a 1.39 experience mod and assumed that was the cost of doing business in its industry. Correcting the errors on the worksheet brought the mod to 1.00 and produced a $104,000 refund.
The Numbers
Industry
Landscaping
Employees
120
Annual revenue
$19 million
Original experience mod
1.39
Corrected experience mod
1.00
Original annual premium
Over $400,000
Premium refund
$104,000
Estimated forward savings
$45,000 a year
Open claims stayed on the mod long after they should have been closed, and classification errors inflated the base premium. The employer didn't know the rules that govern the mod, so the penalty went unchallenged.
The employer challenged the open reserves before the valuation date and checked the class codes applied to its workforce. The mod dropped to 1.00 and the premium refund followed.
This result maps to
Module 1: Experience Mod Mastery → Module 3: Classification and Premium Audit Mastery → ← All case studies3.5 hours, 3 seats, $795. If it doesn't earn its keep, the guarantee covers you.
