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.