High Emod Contractor Work Comp

AZDave

Guru
100+ Post Club
Any suggestions for high emod work comp for a steel contractor? 1.59 and I'm trying to get them out of the pool. Long shot, I know, but there is a lot of meat on the bones.

Thanks,
Dave
 
Thank you MrGolf. I'll give them a call. They look like a fit, but appear they may not like AZ as the base state.
 
Why is the mod so high? I looked at a mod worksheet and loss runs for an agent recently and, of the 5 open claims driving the mod, 3 of them could have been closed over a year ago. One was an $80,000 open reserve on a worker who had hernia surgery and has been back to work almost 2 years. The carrier just failed to close the reserve and nobody was monitoring this for the stat card cut-off date.
 
Four full years in business, with early years showing low premiums and one large open loss that could not get closed due to ongoing treatments. Insured even kept him on the payroll trying to keep it to medical only. Last year, first assigned emod .94; this year 1.59. It's really going to hurt, not just financially, but throws them out of being able to bid so much work.

Just dumb luck for them. The carrier for the other lines was this close - to adding the work comp line. They overlooked the large loss, did two separate loss control surveys in two states. Loved the management and the other lines have been very profitable with current premium approaching 300K, without the work comp. Right before they did the second loss control, I get a call from the insured: a worker took a fall and broke his hip.

I could have pretended to not have had that phone call. The apps were into the new carrier with all the loss runs. They did perform the second loss control and had the work comp line rated and ready. I pulled current loss runs to see what the claim looked like. This little fall now has a reserve of $250,000! And I'm looking at an offer for the work comp.

And I'm trying to get them out of the pool. Hopeful that the $2,000,000 in payroll will be enticing enough to offset the severity losses. But you can hope in one hand and....
 
Back
Top