Case Study: Cutting Experience Mod for Day Care Client Like Child’s Play

The Client:

A day care center headquartered inPennsylvania, with 57 locations in three states that serves over 6000 children and employs 2000 with revenues in excess of $28 million annually.

The situation:

Certified WorkComp Advisors from The Seltzer Group observed that this company had the highest Experience Mod Rating of any company with the same class code in the state ofPennsylvania. With a Mod of 2.7, the company’s executives were at a loss for how to correct the problem and get their costs under control.


After reviewing all the necessary files it was discovered that there were 23 claims still open on the books, there was no return to work program and injuries were not being treated by the proper facilities. The company was relying heavily on their insurance carrier to handle their claims and issues were falling through the cracks.


Several Certified WorkComp Advisors from The Seltzer Group and East Coast Risk Management developed a comprehensive risk management plan. Examination of existing claims led to the closing of 17, four of the remaining six are under investigation for the possibility of subrogation.  An incident reporting and investigation package was implemented that included detailed procedures for reporting injuries and specified to whom the employees should go to for initial medical evaluations and it also indentified “light duty” jobs. Safety initiatives were established to help prevent losses. Safety audits were conducted with the facility managers in 52 of their 57 locations to improve safety awareness. Key personnel completed 2.5 hours of “supervisor training” for all locations, including area business managers inPhiladelphiaandPittsburgh,New YorkCity and theOhioregion. A two-hour review session was held at the Annual Director’s meeting in Pittsburgh and the specialists at The Seltzer Group and East Coast Risk Management conducted a three day “Train the Trainer” session for defensive driving and a new diver training program was implemented for all operators. East Coast Risk Management is now working to develop an Accident Review Board so that all fleet accidents can be reviewed. All of this is designed to help prevent accidents from occurring and to make sure claims are handled properly in the event they do occur.


Closing the open claims and educating the staff lead to immediate results in the reduction of both incidents and workers compensation insurance premiums. The Seltzer Group started working with the company in June 2010. During the first half of 2010 (prior to working with Seltzer) the company had already amassed $413,000 in WorkComp claims and 61 injury incidents. From June 2010-June 2011, CWCAs from The Seltzer Group were able to reduce their workers compensation expenses to $14,700 and only 14 incidents of injury. The Experience Mod reduced to a 1.8.   

These results are real and they are possible for your business too! Take control of your workers compensation program and learn what you can do before, during and after a claim occurs to save money!

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November 8-Reading,PA

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 The Seltzer Group is located in Eastern PAand serves business and individuals locally, regionally and on the national level. The Seltzer Group is a proud member of the Keystone Insurers Group and is dedicated to educating employers on the latest business topics and trends.

Case Study: Cutting Experience Mod for Day Care Client Like Child’s Play was last modified: August 26th, 2014 by Sarah McGorry