A large boat manufacturer that produces more than 1,000 units a year was referred to BKS Partners through another large boat manufacturer after receiving a cancellation notice from their PEO due to loss history. The company was concerned about having to procure coverage through the JUA. They wanted a risk & insurance services firm that specializes in boat manufacturing to perform site visits and provide recommendations for reengineering their entire loss control/safety.
The manufacturer had significant workers’ comp claims that resulted in an unacceptable MOD that was draining cash flow and reducing profit margins. The existing workers’ compensation program design did not reward performance, and the company wanted more insights into what was specifically responsible for the poor loss history.
BKS’ Risk Mitigation Services team implemented custom behavioral-based safety initiatives. The program was restructured to share in success through loss-sensitive or dividend plans. Data analytics were provided to illuminate on key loss drivers and areas needing improvement.
The experience mod went from 1.23 to .96 creating an additional $110,000 in working capital that could be deployed back into capital expenditures. The loss ratio went from 456% in 2014 to 31% in the last full policy year, which has yielded $205,431 in addition to the dividend cash flow. Decision-making insights were generated to help the manufacturer operate the plant more efficiently.