How to afford WorkComp on your employees

Only time without claims(or just small ones) will change the experience modification.

 

One of the reasons companies prefer O/O's / lease operators to employee drivers.
One secret is to have your drivers paid in a state with lower W/ Comp rates. I know of companies who pay a company located in a low rate state to pay their drivers, like a driver leasing company. Used to be several in S.Carolina who would hire your driver, and bill you for everything connected to the driver. The rates for W/Comp, un-employment, driver benefit packages were much lower in S. Carolina, so money was saved.

 

I have a story that relates to this, heads up, because this could happen to you!


We always "HAD" a very low mod rate, (last 15 years) that all changed when one of my drivers got rear-ended on a NY interstate by another semi, he was off work for about 3 months (jacked his back up) here is the kicker, my insurance company is waiting until all claims are in before they settle, they will then subrogate against the other company, since this was 100% on them the insurance company should get reimbursed for ALL WC costs, and also the damages to my truck and trailer.

Here's the ###### part, listen close, because they have to wait to subrogate, ALL of the injury/rehab expense is paid by my insurance, so MY mod rate has gone from an 85% (which if not for this wreck it should have dropped again) to a 130% mod rate, it will cost us almost a third more for WC this year and the next two until mod drops off again.

Meanwhile, since the incident has not been settled, the company that hit us rate will stay the same!!! I blew up, screamed at my insurance agent, called the insurance company, an spoke to the state insurance commissioner, guess what, tough beans.

They did tell me that after this all shakes out that I may get some of my paid in raised rate back, BUT my mod will stay high, is this the biggest pile of crap going? I'm still pissed about it. So it isn't all just about how careful YOU/YOUR drivers are.

Sorry for the rant, but #### it anyhow.

Stan

 

Are you on a policy with profit sharing? Something similar to yours and got it all back and the mod dropped back to where it was.

 

Hey Chris, no, it's just a straight up pay to play deal. Going forward I did look into getting a base bond to cover up to a certain amount, a deductible if you will, still waiting to hear back, we just are not that big of a company.

 

Are you in a pool or insurance direct? Don't have to be big(unless stuck in a pool)to get in a rebate/profit sharing plan. Some states don't allow rebates but the insurance company's have ways around that. 50K in comp and less than 5K in claims can get 25K rebate regardless of mod factor. It's a gamble if you want to self insure(deductible)for more than 10%. Don't like to offer names but West Bend has some good programs if they can do them in KS.

 

I am pretty sure that every trucking company in Kansas is in this pool. I'll have to revisit my notes, at the time I was so pissed I couldn't of told you my Bday!