In the hospitality industry, operating margins are often tight, and insurance costs can consume a sizeable portion of the budget. That is why even small inaccuracies in workers compensation calculations can create unnecessary financial strain. When a multi-location hospitality group asked us to review their premium history, the goal was to confirm whether their Experience Modification Rating truly reflected their claims exposure.

Our analysis revealed a subtle but meaningful discrepancy. The rating that had been applied to their policy was higher than it should have been, which directly increased their premium costs. We worked closely with the insurance carrier to support a correction request and ensure the appropriate rating was used for the policy year in question.

In late July, a revised audit was issued that incorporated the accurate Experience Modification Rating of 1.220 rather than 1.233. Although the adjustment may seem minor, the financial impact was anything but. The corrected rating produced a refund of $23,339 for the client.

This result serves as a reminder that even modest errors can lead to significant overpayments. A careful, independent review can uncover overlooked savings and return real dollars back to the bottom line.