A distribution company recently contacted us to review their workers’ compensation audits after questions arose around the accuracy of their premium calculations. With insurance costs representing a significant portion of operating expenses, even small discrepancies can have a measurable impact on the bottom line.

Our analysis focused on the company’s Experience Modification Ratings for two prior policy periods. While the ratings had been accepted as accurate, a deeper review revealed opportunities to correct how prior loss data had been reported and applied. We worked directly with the appropriate parties to request and support these corrections on the company’s behalf.

As a result, the Experience Modification Ratings were adjusted from 1.09 to 1.07 for the 2021 to 2022 policy period and from 1.10 to 1.08 for the 2022 to 2023 period. Although the changes may appear incremental, their impact on premium calculations was significant. Revised audits were issued reflecting the corrected ratings, resulting in a combined return premium of $31,727.

This engagement highlights how even modest adjustments to experience ratings can translate into meaningful financial recovery. For companies with multiple policy periods, a careful review can uncover savings that would otherwise remain hidden.