Painters Stretching Can Lead to Reduced Premiums

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

Having played professional baseball for several years, I know the importance of stretching to prepare oneself for the day. My team would stretch when we got to the field, then again before batting practice, and once more before the game started. Most people reserve stretching for sporting events. They forget the importance of stretching before work — feeling they will “loosen up” as the day goes along. However, there are countless ways for employees to become injured and those medical bills can grow all too fast.

While there are things that can be done to try to mitigate the claims after they occur, the best way to save on your premium is to prevent injuries from ever happening. If you can set aside just 5 minutes a day for your employees to stretch their muscles that will be used throughout the day, that could reduce strain and pull claims dramatically.

As recent as 2015, the WCIRB has broken down the most common injuries that occur in the 5474/5482 class codes. 57% of the injuries could have possibly been prevented by allotting just a few minutes a day for stretch and wellness. The most common injuries for painters are to their lower extremities, back, and upper extremities (not including the hand). It is easy to see, that with all the bending down and painting above their heads, cumulative injuries are going to happen if no precautions are taken. An average claim for these types of injuries can cost just shy of $35,000. Having multiple claims of these types can be crippling for a company.

Having employees stretch when they get to the jobsite, and after lunch is the best way to reduce soft tissue claims. Making sure the legs are ready to bend, the back and neck are stretched out, and shoulders are prepared for the work at hand, is as important as anything they will be doing that day.

Your employees may need a little extra energy in the morning, but caffeine reduces blood circulation and can lead to stiffness when returning from lunch. It is important to get the blood flowing again with some trunk twists, toe touches, and arm swings. This will increase blood flow throughout the body. Finally, inflammation can worsen as the day progresses, and having leafy greens reduces inflammation. Providing a healthy lunch can help to build morale and keep that nagging soreness away while increasing productivity.

Rancho Mesa has put together a Mobility and Stretch Program™ for their clients. The program has reduced the number of reported strain and pull claims, and has significantly helped drop clients’ MODs. Please reach out to Rancho Mesa Insurance Services, Inc. with any questions you may have.

How To Lower Your Experience MOD by Understanding Your Primary Threshold

Author, Drew Garcia, NALP Program Director, Rancho Mesa Insurance Services, Inc. 

The Experience Modifier (i.e., experience MOD, MOD, XMOD, experience modification rating, EMR) weighs heavy on the calculation of your workers' compensation premium. With a MOD rating of 1.00 signifying unity  (i.e., the average for your industry), any MOD above 1.00 is considered adverse. Thus, any MOD below 1.00 is considered better than average. Higher MODs will debit the premium, resulting in higher workers' compensation premiums, while lower MODs will credit the premium, resulting in lower workers' compensation premiums.

How do I decrease my MOD to lower my workers compensation premium?

A few factors can be addressed to reduce the workers' compensation premium. The most important is the primary threshold. Each individual employer has their own primary threshold that is determined by the class of business they operate and the amount of field payroll they accrue over a three year period. The primary threshold is the point at which any claim maximizes its negative impact on the MOD. You must be sensitive to this number because any open claim with paid amounts under the threshold, provides an opportunity to save points to the MOD. Once a claim exceeds paid amounts over your threshold, it no longer can negatively impact your MOD. However, you would still want to monitor and manage these claims to ensure your injured employee is being provided attentive care and to maintain knowledge of your loss experience. 

Example

You’re a landscaping company and your primary threshold is $33,000. The most any claim can affect your MOD is $33,000 and the most points that any claim can add to your MOD is 13.
You have a claim open for $40,000 with paid amounts of $10,000 and reserved amounts of $30,000.

This claim will go into the calculation at $40,000 (Paid + Reserved) but because the total amount succeeds the primary threshold of $33,000, it will only show up on the rating sheet totaling $33,000 of primary loss and contribute 13 points to your MOD.

It would behoove you to analyze and monitor this open claim, because it has paid out amounts well below your primary threshold of $33,000.

If this same claim closes for a total paid amount of $22,000, the closed claim would go into your MOD at $22,000 with 8 points contributing to the MOD.

The difference between a $40,000 claim and a $22,000 claim is 5 points to your MOD, or, 5% to your premium!

Knowing your primary threshold is the most important piece of information when managing your XMOD. Fortunately, Rancho Mesa can help you manage your experience MOD by tracking your primary threshold and maintaining the other critical elements that go into establishing a sustainable low experience MOD.

For more information about lowering your experience MOD or a detailed analysis of your current MOD please reach out to Rancho Mesa.

Below is an example worksheet for Landscapers to determine the primary threshold.

Primary Threshold for Landscape Industry

Annual Landscape Payroll	2018 Primary Threshold	Max Points to MOD	Lowest MOD
$100,000	$5,500	53	.84
$250,000	$10,000	38	.75
$500,000	$15,500	30	.65
$1,000,000	$22,000	21	.56
$1,500,000	$26,000	17	.51
$2,000,000	$30,000	14	.47
$2,500,000	$32,000	12	.45
$3,000,000	$35,000	11	.42
$5,000,000	$41,000	8	.36
$10,000,000	$40,000	5	.30