MADSIF – A Risk Management Tool Designed to Prevent Claims and Reduce Your Premiums
Taking the time to understand the drivers behind your workers’ compensation costs and making a long-term commitment to a comprehensive loss control program designed to control those drivers is the best method for reducing your WC premium.
Shopping carriers may bring short-term savings but unless the true issues behind your WC costs are addressed those savings will be just that, short term.
The main driver of your WC premium is your loss control program. The success or failure of the program is reflected in the severity ($ amount) and frequency (# of) of your WC claims. The frequency and severity of your claims are inputs which help determine your experience MOD factor. Like accidents and tickets serve as predictors of future losses for your auto insurance the MOD factor does the same for your WC costs. The more claims you have the higher your MOD factor becomes. Higher MOD factors increase your WC premium and lower MOD factors reduce your WC premium. Through the application of the MOD factor, in almost all cases, it is the employer who ultimately pays for their employee’s injuries, not the insurance company.
If you continue to incur losses it doesn’t matter how many different carriers you quote with your premium will eventually increase to pay back the insurance company for those claims.
To truly reduce costs employers must implement a loss control program designed to reduce hazardous conditions which reduces claims, lowers your MOD factor which ultimately will minimize your premium costs.
The MADSIF Experience
The MADSIF comprehensive loss control program is free to members. It has proven to dramatically increase the Dealer’s bottom line.
The average MOD factor for MADSIF members is .89. This means that through MADSIF’s stringent underwriting, aggressive claims handling and our Member’s commitment to loss control the average Member receives an 11% discount on their premium.
These safety training programs when instituted and monitored on a continuing basis have prevented accidents, lowered exposures to MIOSHA citations and fines, and ultimately minimized these dealers’ costs of workers’ compensation insurance. The program has also provided safe working environments for dealer employees which has increased their productivity and increased profits for the dealership.
The MADSIF Program consists of the following:
- An annual MADSIF safety survey designed to target hazardous conditions and MIOSHA compliance. (All hazardous conditions are identified and reported to Dealership Management – This includes photos when helpful)
- A Follow-up letter is left with the dealership to complete which notifies MADSIF of the date the hazardous conditions were corrected and what actions were taken.
- A follow-up visit if necessary
- Expert Assistance when MIOSHA visits your dealership
- Periodic Training and Seminars
MADSIF members who focus on the risk factors that prevent injuries can significantly reduce their MOD factor and minimize their WC premiums.
MADSIF acts less like an insurance company and more like a risk management partner to help you lower your long-term workers’ compensation costs.
Learn more here. Or call MADSIF at 866-919-9578 for a free quote or if you have any questions.