Mark is a small business owner who owns and operates a local car repair shop with a team of fifteen employees. Mark’s Workers Compensation insurance premium is annually adjusted based on his company’s loss experience. Typically, three years of loss information is used to determine the experience modifier that will be used for the following year’s insurance cost. Experience modifiers should be recalculated for an employer like Mark annually, as each year a newer year’s loss information is added and the oldest year’s information is dropped off. Mark was insured by a large national insurance company and had a regional broker with a stable of insurance sales staff.
What Usually Happens Next
While a business owner’s experience modifier is updated annually, it’s not uncommon for “smaller” accounts at large insurance agencies to receive less than the needed degree of attention and care they deserve. Without a personal relationship with the business owner, it’s often hard to keep up with changes within the company. Verifying the accuracy of the loss information that is used to calculate the experience modifier is one of the most common examples of an important service component that sometimes slips through the cracks.
The Goldsborough Difference
Mark was referred to Goldsborough by another “small” business owner who had worked with Don Grauel for over five years. In Don and Mark’s first meeting, Mark said that he needed someone to look into his company’s experience modifier as he suspected there was a discrepancy and his current large insurance agency had let him down. Once the producer sold him the policy, Mark never talked to him again and was left to deal with service staff he had never met. Within his first month as a Goldsborough client, Don was able to have Mark’s experience modifier repaired, leading to a savings for him of $23,413/year. With the money Goldsborough saved him, Mark was able to reinvest in both his company and his employees.