For Business

If you would like to reduce your workers’ comp cost, slash the direct and indirect costs associated with workplace injuries, and gain a competitive advantage over your rivals, Synergy Comp may be the solution for you!


We believe there are different approaches to workers’ compensation. One example is the traditional approach, which is grounded in numbers; a second example is Synergy’s hands-on,    people-focused solution. Give us a little time, and we’ll show you the difference and what it can mean for your business.

The traditional numbers-focused view of workers’ compensation is best illustrated by the experience mod calculation used to determine rates. The two major components used to determine your final experience modification rate are severity and frequency.  Severity measures the total amount of a work comp claim, and frequency measures how often claims take place.  Again, these are measured against other businesses with similar classifications and job duties.


The actual calculations for the experience modification rate are confusing, so let us try and simplify. The rate itself is based upon your most recent three years of claims history excluding the year that just ended.


If your workers’ compensation insurance renewed on January 1, 2015, your experience modification rate would be based on the three years of work comp claims experience from January 1, 2011-January 1, 2014. So ultimately, your last three years of workers’ compensation claims affect your current workers’ compensation rate either negatively or positively.

What does to the experience modification factor mean to my business?

In a word, Money.  We have seen experience modification factors range over 2.5 on a large business.  This means they are receiving a 150% debit! It is hard enough to compete in the business world, but trying to compete with a large debit on your workers’ compensation insurance is like trying to run a race with a 100 pound back-pack.  It puts the business owner at huge disadvantage.


Let’s say you are a business with a 2.50 experience modification factor, and you are competing against a company with a 0.90 modification factor. You are 160% behind your competitor before you even start.  If both companies’ manual premiums are $200,000 a year; one company is paying $500,000 while the other company is paying $180,000.  What can you do for $320,000?

How do I improve my experience modification rate?

Quite simply, have fewer and less expensive claims.

What else effects experience modification rate?

The other item that affects experience modification rates is open claims. Open claims are claims that have occurred, but have not been finalized. For example, an employee might have suffered a back injury at work.  The insurance company may put an open reserve (cap on what the insurance company may pay) of $100,000, but the final settlement is only $50,000.  Until that claim is settled for $50,000, a $100,000 claim will be reported for the experience modification rate.

Time lost from work by the injured employee.

Lost time by supervisor.

Low employee morale and increased absenteeism.

Failure to fill orders/meet deadlines.

Overhead costs while work was disrupted.

Loss of efficiency due to break-up of crew.

Training costs for new/replacement workers.

Loss of production for remainder of the day on which the accident occurred.

Poor customer and community relations.

OSHA has created a chart listing the amount of revenue companies operating at varied profit margins would have to generate in order to cover the cost of workplace accidents:

Profit Margin
Total Cost of Accident 1% 2% 3% 4% 5%
$1,000 $100,000 $50,000 $33,000 $25,000 $20,000
$5,000 $500,000 $250,000 $167,000 $125,000 $100,000
$10,000 $1,000,000 $500,000 $333,000 $250,000 $200,000
$25,000 $2,500,000 $1,250,000 $833,000 $625,000 $500,000
$100,000 $10,000,000 $5,000,000 $3,333,000 $2,500,000 $2,000,000

Generating revenue at these levels in an increasingly competitive global economy simply to cover accident costs is more than a daunting task; it’s a waste of precious resources that could and should be used to make your business stronger.

In Contrast, Here’s Our Hands-On Synergy of Safety® Solution:


Rather than simply generating a bill you have to pay, our innovative approach converts your workers’ comp dollars into an investment that can substantially enhance your bottom line.


We accomplish this paradigm-changing goal by seamlessly combining innovative claims resolution, risk management, and loss prevention strategies into the most effective workers’ compensation and workplace safety solutions available today. This methodology, coupled with your commitment to Transitional Return to Work, creates a three-pronged approach that begins the culture shift toward an improvement in safety.


Then we do more. We work with the CEO, the management team, and your employees to create a culture that fosters communication and embraces safety as a core operating principle. This fusion of real-world solutions and cultural change creates a Synergy of Safety® that reduces workplace injuries, increases productivity, and yes, as unbelievable as it may seem, generates real ROI.


We understand if you’re skeptical. Many business owners are—until they learn more about our process and experience the impressive savings our long-term solutions generate. On average, firms that partner with Synergy experience a 33% reduction in their Experience Mod factor and a 37% decrease in premiums after just four years of our hands-on solution.


In addition to driving down the direct costs of workers’ compensation insurance over time, our solution has a much larger effect on your bottom line. According to the American Society of Safety Engineers, indirect costs can multiply the negative impact of workplace injuries by up to 20 times and that, in turn, can tear a huge hole in your business’ profitability.

If you would like to reduce your workers’ comp cost, slash the direct and indirect costs associated with workplace injuries, and gain a competitive advantage over your rivals, contact your insurance agent or reach out directly to Synergy Comp today.

Like our growing list of clients, you’ll never look at workers’ comp the same way again.