A New York City-area specialty contractor engaged us to review their premium calculations over the past seven years. We conducted a thorough analysis of their Experience Modification Ratings, focusing first on the losses incurred on their policy and the reporting of that loss data to the Rating Authority.

We then shifted our attention to the losses incurred under the various owner-controlled and contractor-controlled insurance programs (“wrap-ups”) they participated in during that time. This second focus—the “wrap-up” loss experience—is unique to the construction industry and prone to errors. Because the insured does not own these policies (they are owned by the construction project owner or general contractor), they have limited oversight and control over data reporting, leading to mistakes.

As a result of our review, we identified errors on their policy and several “wrap-up” policies. Our corrections led to revisions of five Experience Modification Ratings over the seven-year period and resulted in over $160,000 in refunds on older policies.

Experience Modification Rating calculations are highly complex, especially in the construction industry. A good Rating is crucial for subcontractors, as a poor one can disqualify them from bidding on certain jobs. Our service provides a valuable tool for construction industry clients seeking to maintain a strong bottom line.

Contact us today to find out if you’ve been overpaying and uncover potential savings!