Workers' Compensation Experience Rating Review

Experience Modification Factor Analysis

Current EMR Calculation Breakdown

The Experience Modification Rate (EMR) compares your actual losses to expected losses for businesses of similar size and classification. An EMR below 1.00 indicates better-than-average safety performance, while above 1.00 suggests higher risk.

Component	Actual	Expected	Impact
Primary Losses	$[Amount]	$[Amount]	[+/-]%
Excess Losses	$[Amount]	$[Amount]	[+/-]%
Claim Count	[Number]	[Number]	[+/-]%
Resulting EMR	[Current EMR]		[Impact on Premium]

EMR Projection Analysis

Based on current claims development and proposed safety improvements, we project the following EMR trajectory:

Year	Current Trajectory	With Improvements	Premium Savings
Year 1	[Projected EMR]	[Improved EMR]	$[Savings]
Year 2	[Projected EMR]	[Improved EMR]	$[Savings]
Year 3	[Projected EMR]	[Improved EMR]	$[Savings]

Claims History Review

Three-Year Claims Analysis

Detailed examination of claims data reveals patterns and trends critical to experience rating optimization. The following analysis covers claim frequency, severity, and category distribution.

Claim Category	Frequency	Average Cost	Total Incurred	% of Total
Musculoskeletal Injuries	[Number]	$[Amount]	$[Amount]	[X]%
Cuts/Lacerations	[Number]	$[Amount]	$[Amount]	[X]%
Falls/Slips	[Number]	$[Amount]	$[Amount]	[X]%
Other	[Number]	$[Amount]	$[Amount]	[X]%

High-Impact Claims Review

Analysis of claims exceeding $[Amount] threshold identifies specific incident patterns and prevention opportunities:

• Claim #[Number]: [Brief description] - Root cause: [Analysis] - Prevention strategy: [Recommendation]
• Claim #[Number]: [Brief description] - Root cause: [Analysis] - Prevention strategy: [Recommendation]
• Claim #[Number]: [Brief description] - Root cause: [Analysis] - Prevention strategy: [Recommendation]

Safety Program Assessment

Current Safety Protocol Evaluation

Comprehensive assessment of existing safety programs reveals strengths and critical improvement areas. This evaluation aligns with OSHA standards and industry best practices.

Safety Component	Current Status	Compliance Level	Improvement Priority
Safety Training Program	[Status Description]	[X]%	[High/Medium/Low]
Incident Reporting System	[Status Description]	[X]%	[High/Medium/Low]
Personal Protective Equipment	[Status Description]	[X]%	[High/Medium/Low]
Job Hazard Analysis	[Status Description]	[X]%	[High/Medium/Low]
Return-to-Work Program	[Status Description]	[X]%	[High/Medium/Low]

Safety Program Gaps Identified

1. Inconsistent Safety Training: Training frequency and content standardization needed across all job classifications
2. Reactive Incident Response: Lack of proactive hazard identification and near-miss reporting
3. Limited Safety Metrics: Insufficient leading indicators for safety performance measurement
4. Fragmented Communication: Safety information not effectively distributed to all workforce levels

Premium Reduction Strategies

Immediate Cost Reduction Opportunities

Alliance Integration Solutions

iCOS Safety Management Integration

Alliance's integrated Contractor Operating System (iCOS) provides comprehensive safety management capabilities that directly impact experience rating optimization:

• Real-time Incident Tracking: Immediate notification and documentation of safety incidents
• Automated Compliance Monitoring: Track safety training, certifications, and regulatory requirements
• Predictive Analytics: Identify potential safety risks before incidents occur
• Performance Dashboards: Visual representation of safety KPIs and EMR impact factors

Claims Management Optimization

Leverage Alliance tools for comprehensive claims management:

Alliance Tool	Application	EMR Impact
Claims Dashboard	Real-time claim status and cost tracking	Reduce claim severity through early intervention
Analytics Engine	Identify claim patterns and prevention opportunities	Decrease claim frequency through targeted prevention
Communication Portal	Streamline stakeholder communication	Expedite claim resolution and reduce costs
Document Management	Centralized claim documentation and evidence	Improve claim outcomes and reduce reserves

Cost Management Recommendations

Implementation Timeline and Investment Analysis

Initiative	Timeline	Investment Required	Annual Savings	ROI
Alliance iCOS Implementation	30 days	$[Amount]	$[Amount]	[X]%
Enhanced Training Program	60 days	$[Amount]	$[Amount]	[X]%
Claims Management Upgrade	45 days	$[Amount]	$[Amount]	[X]%
Return-to-Work Program	75 days	$[Amount]	$[Amount]	[X]%

Budget Allocation Recommendations

• Technology Investment (40%): Alliance system integration and analytics tools
• Training and Development (30%): Safety education and culture development
• Claims Management (20%): Enhanced medical management and case resolution
• Program Administration (10%): Ongoing monitoring and optimization

Analytics and Benchmarking

Key Performance Indicators

Metric	Current Performance	Industry Benchmark	Target Goal	Measurement Frequency
Experience Modification Rate	[Current EMR]	1.00	<0.90	Annual
Claim Frequency Rate	[Rate per 100 employees]	[Industry average]	[Target rate]	Monthly
Average Claim Cost	$[Amount]	$[Industry average]	$[Target amount]	Quarterly
Lost Time Incident Rate	[Rate]	[Industry average]	[Target rate]	Monthly
Return-to-Work Success Rate	[Percentage]	[Industry average]	>90%	Quarterly

Competitive Benchmarking Analysis

Comparison with industry leaders in your classification codes reveals opportunities for performance improvement:

• Top Quartile Performance: EMR of 0.75-0.85 achievable with comprehensive safety program
• Claims Management Excellence: Best-in-class companies achieve 95%+ return-to-work success rates
• Technology Integration: Leading contractors report 30-40% premium reductions through strategic safety technology adoption

Compliance Enhancement Strategies

Regulatory Compliance Framework

Ensure full compliance with federal, state, and local safety regulations while optimizing experience rating:

1. OSHA Compliance Management:
   • Implement Alliance compliance tracking system
   • Establish regular safety audits and inspections
   • Maintain current safety data sheets and hazard communications
2. State-Specific Requirements:
   • Monitor changing workers' compensation regulations
   • Ensure proper classification codes and payroll reporting
   • Maintain required safety training certifications
3. Industry Standards Adherence:
   • Follow applicable trade association safety guidelines
   • Implement best practices for equipment operation and maintenance
   • Establish safety committee and regular review processes

Documentation and Record-Keeping

Proper documentation is essential for both compliance and experience rating optimization:

• Maintain comprehensive safety training records using Alliance systems
• Document all incident investigations and corrective actions
• Keep detailed records of safety meetings and communications
• Preserve medical documentation and return-to-work agreements

Action Plan and Next Steps

Immediate Actions (0-30 Days)

Short-Term Initiatives (30-90 Days)

Long-Term Strategic Goals (90+ Days)

Success Measurement and Review Schedule

Review Period	Focus Areas	Key Metrics	Stakeholders
Monthly	Claims activity, safety incidents	Claim frequency, incident rates	Safety team, operations
Quarterly	Program effectiveness, cost analysis	EMR projection, cost savings	Executive team, insurance carrier
Semi-Annual	Strategic plan adjustment	ROI analysis, benchmark comparison	Board, Alliance consultants
Annual	Comprehensive program review	EMR calculation, premium impact	All stakeholders

Conclusion and Investment Recommendation

This comprehensive Workers' Compensation Experience Rating Review demonstrates significant opportunities for cost reduction and risk mitigation through strategic safety program enhancement and Alliance system integration. The proposed initiatives offer substantial return on investment while improving workplace safety and regulatory compliance.

Implementation of these recommendations, supported by Alliance's comprehensive technology platform and expertise, will position your organization as an industry leader in safety performance while achieving substantial cost savings. The integration approach ensures sustainable improvements that will benefit your experience rating for years to come.

This report serves as a strategic roadmap for workers' compensation optimization. Alliance for Contractors stands ready to support implementation of these recommendations through our comprehensive suite of safety management tools, analytics capabilities, and industry expertise.