MR Management, Retro Plans, and Deductible Options to Cut Rising Premiums
For manufacturing, metal fabrication, and food processing businesses, the risks are high—and so are potential workers’ comp premiums. Hazardous machinery, intense physical labor, and strict safety standards can inflate costs if not managed effectively.
Identifying Hazards & Managing EMR
“In high-risk industries, your Experience Modification Rate (EMR) is critical,” explains Kirk Aguilera, Managing Partner and National Workers’ Comp Practice Leader. “Keeping claims in check—and ensuring no misclassifications—can reduce premiums by up to 25% (NCCI).”
Case Study: Metal Fabrication Plant
A medium-sized plant saved $50,000 annually after switching to a retrospective rating plan and instituting a safety drill every quarter. By doing so, they not only reduced workplace injuries but also earned premium returns when claims stayed under projected levels.
Actionable Takeaways
- Audit Your EMR Twice a Year: Identify patterns in injuries and correct any classification errors.
- Explore Plan Options: A large deductible plan or retro plan may fit better if you have consistent cash flow and a solid safety record.
- Institute Frequent Safety Check-Ins: Catch potential hazards before they become costly claims.
Choosing the Right Plan
- Large Deductible: Best if you have strong cash flow and robust in-house claims oversight.
- Retrospective Rating (Retro): Pay based on actual losses, potentially earning back premiums if claims stay low.
- Captive Arrangements: Offers customization and, in some cases, tax advantages—but requires advanced claims management.
Elevate Your High-Risk Coverage: Don’t let high-hazard operations automatically mean high workers’ comp expenses.
- Take Our Workers’ Comp Plan Quiz to see if there’s a more cost-effective path.
- After you complete it, we’ll coordinate a free 20-minute consultation with Kirk to evaluate alternative plan structures—from deductible and retro options to captive solutions—and pinpoint exactly where your manufacturing or processing business can save.
