One Lockton client was enjoying an increase in revenue, but was not happy with the accompanying increase in workers’ compensation costs. Due to the nature of employee contracts, this healthcare staffing company had a limited amount of time to return workers to full duty and manage their worker’s compensation claims effectively. Lockton’s Claims Cost Control unit stepped in and helped the client hire an injury counselor. Lockton also restructured and centralized the post injury management process, and also installed their claims management software tool to help the client manage claims more effectively. Claims Cost Control then worked with the client to develop strategies that would shorten the length of lost time days. In the end, the client saw great results across the aboard. Compared against the previous year, the client saw a 28 percent reduction in total incurred workers’ compensation costs and a 19 percent decrease in the average cost per claim.

With Workers’ Compensation costs increasing, a large healthcare staffing client looked to Lockton to help them reverse the trend. Lockton Claims Cost Control identified the potential for this client to turn things around by implementing the Claims Cost Control post injury management model. With some help from Lockton, the client hired an injury counselor and restructured their post injury management process. A major part of the process was the use of Claims Cost Control’s software tool, called Workers’ Compensation Claims Management System. With a more streamlined approach in place, the client won an award for best in class risk management practices. They also saw a 19 percent reduction in average cost per claim, as well as a 52 percent reduction in lost time days.

A transportation company wanted to manage out of control workers’ compensation costs. Within 3 years, Lockton developed a unique and proven plan. It created a safety culture that the company's leadership and workers bought into, and lowered claims from $750,000 a year to less than $100,000 a year.

A major retail store chain had experienced tremendous growth, opening 50 stores in one year. Workers’ Compensation costs were spiraling out of control and without a consistent approach to handling claims, senior management was taking notice.

Lockton’s Claims Cost Control Consultants collaborated with the company’s Director of Risk Management to accomplish the following: advertise and hire an outsourced Injury Counselor, develop a business plan, mentor the Injury Counselor, develop a temporary transitional-duty culture, and monitor the Injury Counselor’s efforts through a customized software program.

Within a one-year period, Lockton’s Claims Cost Control Consultants were able to reduce the company’s average workers’ compensation costs by 10 percent and l ost-time days by 47 percent.

The recently hired Corporate Insurance Manager wanted to determine Workers’ Compensation best practices and enhancements opportunities for an entire national healthcare system. Lockton Claims Cost Control Consultants conducted site surveys at each hospital with recommendations for each location and a system-wide business plan.

Each of the hospital’s Workers’ Compensation Coordinators attended Lockton’s Injury Management training seminar. A customized software program was installed at each hospital to help them take a systematic approach to post-injury management and produce meaningful reports.

The result was a $2.1 million reduction in ultimate projected Workers’ Compensation loss costs over an 18-month period. In addition, $3.9 million in credits were offered to affiliate hospitals over a three-year period after implanting the Claims Cost Control program.

A publicly-traded truckload hauling company’s Workers’ Compensation costs were accelerating toward $30 million. Up to this point in time, the company’s Workers’ Compensation program was largely focused on vehicle accident reduction.

Lockton’s Claims Cost Control Consultants championed senior management for change by helping the company balance their loss prevention efforts more equally between driver injuries and vehicle accidents. Internal loss prevention and post-injury management task forces allowed Lockton to successfully lead a training program for fleet managers and a transitional-duty task force which accommodated drivers to heal on the job.

Within nine months of implementation, the company showed a 29.4% decrease in average cost per claim.

The Lockton claims department was approached by a large construction client and asked to review their legacy claim program, being administered by a large national carrier, and to make recommendations about the accuracy of the reserves and the aggressiveness of the action plans that were in place. The client had concerns because their internal auditors believed it would take $18 million to finalize the claims, and the client had seen little activity on the claims.

The Lockton claim consultants reviewed 110 liability and worker's compensation claims and as a result of the recommendations provided, the client experienced a reduction of 42 claims, or 38% of the open inventory. More importantly, because of the resulting reserve reductions, the carrier reduced the client’s collateral requirement from $18 million to $8 million.

A national food processing company faced challenges with an upcoming plant closing. Prior to Lockton’s involvement, the company experienced a negative financial impact while shutting down a California plant, when 100% of workers filed workers’ compensation claims. Lockton Loss Control developed and implemented a Risk Control Service Plan for the second California closing. Through upfront research of local jurisdiction, unemployment statistics and job placement resources Lockton created a detailed plan. The plan integrated resources from the community, plant management, corporate finance, human resources claims and safety. Before Lockton’s involvement, the client projected that 50% of the plants 560 employees would file claims. By adopting Lockton’s plan, the company announced the shutdown in mid 2006 and only 3 claims have been filed as of October 2007 totaling $31,800. The original projected loss was $3.7 million to $7 million dollars.

An international casual dining restaurant struggled with poor management participation in proactive risk control which contributed to increasing claims. Managers had little incentive to reduce accident frequency because bottom line P&L determined performance evaluations. Lockton promoted proactive risk control by designing a claims cost allocation process and leading indicator program for local restaurants. By integrating the cost of accidents into a manager’s performance they learned to create a safer, lower cost operation. Results led to a 15% reduction in accident frequency in the first year through a heightened awareness of managers’ safety responsibilities.

Lockton worked hand-in-hand with a long time client in energy manufacturing to help the company win a large contract.  The energy equipment manufacturer needed to improve its safety and loss control, and asked Lockton’s risk control team to evaluate their existing programs.  Lockton made a series of recommendations, and launched a series of actions to advance the client's safety goals.  Lockton even made a safety presentation on behalf of the client, which helped them win a bid for them, according to the company President/CEO.  After logging more than 100 hours consulting and improving safety programs, Lockton guided the client to a reduction in safety incidents and a contract worth $7.6 million.

Lockton has served a nationally recognized food company for several years now, and has helped the client through many changes.  In 2003, after the company was sold to a private equity firm, Lockton attacked a massive backlog of workers’ compensation claims, closing more than 200 open claims.  In the process, about $4.5 million was freed up for the client.  The client was sold to another private equity firm a few years later, which saw the company scale back its operations.  Lockton helped them through a staff downsizing, showing the company how to properly handle exit interviews.  This training kept fraudulent workers’ compensation claims to a minimum.  In addition, Lockton’s assistance during the past several years has seen a $530,000 reduction in a letter of credit for the client.  The client’s total cost of risk for 2007-2008 dropped more than $2 million from 2005-2006.

 A multi-billion dollar retailer insured itself on workers compensation. However, the company paid approximately $17-18 million in claims per year. Lockton advised the company on improving its coverage to decrease its claims costs. Lockton met with the company’s loss control representatives, distributed surveys and added injury counselors. After the first year of the program’s implementation, the company’s incurred costs and number of claims decreased by double-digit percentages.

After experiencing a $20 million plant fire, a recreational vehicle and commercial bus manufacturer needed to make sure that its new facilities were better protected. Lockton’s experts concluded that the new building had to meet higher automatic sprinkler design requirements based on the buildings use and contents. After complex negotiations with the insurance company and a third-party engineering firm, Lockton persuaded the insurer to fund the $250,000 improvement in the client’s fire protection plan.

A provider of rehabilitation program management services to long-term care facilities allowed Lockton to step in and take a look at their worker’s compensation program and a new Texas-based acquisition. The client needed a broker to analyze data to reduce the variable and fixed claims costs. Lockton brought up several new ideas regarding the structure of the Texas acquisition and how to avoid slip-and-fall claims. To date, the changes have resulted in a 25% reduction on fixed costs for claims, and variable costs are trending downward.

While most contractors are trying to tread water during the recession, this concrete subcontractor experienced rapid revenue growth. As Lockton began to review the prospect’s policies, the team found a growing company with insufficient coverage, including theft exclusions and expensive equipment left uninsured. Lockton fixed each of the gaps while keeping the total cost of risk for the client flat. Now, the concrete contractor client is implementing a loss control plan to reduce its risks for the long term, so it can keep growing.