A recent review of a manufacturing client highlights how multiple, unrelated errors can quietly inflate workers’ compensation costs over several policy years. The engagement ultimately resulted in an estimated $42,000 in refunds, along with meaningful reductions to their future premiums.

Our work began with a review of the client’s Experience Modification Rating. We identified an error involving a claim that should have been attributed to a different insurance carrier. Because the rating did not properly reflect this, the client’s premiums were overstated. Once the correction was applied, the policy experienced an eleven-point reduction in premium impact and generated a sizeable refund.

In addition to the experience rating issue, we uncovered classification errors across several states. Multiple employees had historically been assigned to incorrect and more expensive job codes. After correcting these classifications, the client recovered more than $40,000 in refunds and savings on the policy years we reviewed.

Just as important, these corrections will continue to benefit the client moving forward. With accurate classifications and ratings now in place, their workers’ comp premiums will be significantly lower each year.

This case underscores the value of a detailed review. Small errors add up, but when corrected, they can return real dollars back to the bottom line.