How a Large Ambulatory Company Is Saving $800,000 on Workers’ Comp Coverage
Apr 19, 2016
A large ambulatory company based in New York City had been operating at a loss for several years—exacerbating cash flow issues and causing a major obstacle when the time came to renew the company’s workers’ compensation policy. With 1,700 employees and total payroll of approximately $62 million, workers’ comp is a major expense for this client.
Pride Risk President Ralph Mencia discusses how a New York ambulatory company realized significant savings with the high-hazard workers’ comp program.
Higher Mod Makes Workers’ Comp Coverage Unaffordable
The company had previously been covered with the New York State Insurance Fund on a first dollar coverage policy. For the upcoming renewal, the client experienced an uptick in their experience modifier—from .97 to 1.28—making the cost of workers’ compensation coverage that much higher. The NYSIF would have required a deposit of $700,000 to bind coverage and the renewal premium would have been more than $6 million.
Faced with lean cash flow, the client needed an alternative workers’ compensation solution that would deliver hard-dollar savings.
Pride Risk Offers a Lower-Cost Alternative to the State Insurance Fund
The company’s search for an alternative to the NYSIF led it to the high-hazard workers’ compensation coverage program powered by Pride Risk. This program offered three critical value propositions for the client:
- A dramatically lower deposit to bind coverage
- Ongoing savings and lower overall workers’ comp costs
- An unmatched focus on loss control and effective claims management
The deposit required to bind workers’ comp coverage for the ambulatory company was only $3,500—95% less than the deposit required by the New York State Insurance Fund. This factor alone provided a critical advantage to the client, as it immediately relieved pressure on the company’s strained bottom line.
The total cost of the high-risk workers’ comp solution, including all related program expenses, was $5.2 million—creating a projected first-year savings of $800,000 for the client.
Looking Ahead: Client Anticipates Positive Impact on Experience Modifier
The high-hazard workers’ compensation program not only provides an affordable coverage option for hard-to-place risks—it also empowers clients to focus on creating a culture of loss control. As part of this specialized solution, high-risk insureds get an experienced, committed partner with a deep understanding of loss control and claims management in high-risk industries.
Carefully designed program criteria and protocols ensure that the high-hazard program remains sustainable year after year. Creating a long-term culture of safety and loss control can help companies positively impact their experience modifier—ensuring that workers’ compensation coverage remains affordable in the future.
Interested in Learning More About the High-Hazard Workers’ Comp Solution?
Attributes that make a client a good fit for the specialized high-risk workers’ compensation coverage solution include:
- High Risk Business Segments
- Experience Modifiers over 1.00
- Cancelled / Non-Renewed Coverage / Gap in Coverage
- Large Losses / Poor Claims Experience
- Few or no options other than the State Insurance Fund
The program’s strong underwriting appetite accommodates a wide range of gray-collar and blue-collar worker classifications, and provides insurance solutions designed to fit a prospective client’s specific risk management and financial objectives.
Contact Pride Risk today to learn more about the exclusive workers’ compensation solution for high-risk insureds.