A last mile delivery company was referred for a second look at its workers’ compensation premiums after questions arose about whether the numbers truly reflected their risk profile. With insurance costs continuing to climb and margins under constant pressure, leadership wanted clarity and confidence that nothing was being overlooked.

Our review zeroed in on the company’s Experience Modification Rating, one of the most influential drivers of workers’ comp costs. Although the rating had been accepted as accurate for years, a closer examination uncovered errors in the way prior data had been applied. Those errors quietly inflated premiums without any obvious red flags.

After working through the correction process, the company’s Experience Modification Rating was reduced from 1.22 to 1.14. That adjustment translated into more than $31,000 in recovered savings. Just as important, the corrected rating now provides a more accurate foundation for future premium calculations.

This outcome reinforces an important lesson for growing delivery operations. Experience ratings are not set in stone, and even small inaccuracies can have a meaningful financial impact. A careful review can uncover hidden opportunities to recover dollars that would otherwise continue slipping through the cracks.