If you want to lower your organization’s workers’ compensation insurance premium, you’ve come to the right place.
As we wrote on the blog last week, the typical Novara client earns and maintains a workers’ comp rate 10 percentage points below average. That’s because organizations that use Novara tend to reduce their experience modifiers. In our Safety Pays Study, which surveyed 867 clients across the United States, we found that the average Novara client achieves an experience modifier of 90% by the 2nd year of using our platform.
What does that translate to in terms of actual savings?
Let’s use an organization in California as an example. In the Golden State, the average workers’ compensation premium is $172,660. With the average year 2 Novara experience modifier of 90%, an employer in California can expect an annual premium of $155,394, for an annual savings of over $17,000.
For a basic estimate of your potential savings, try out the following formula:
The results don’t end there. Let’s dig a little deeper. Our study found that organizations that use Novara for an extended period of time see additional ongoing decreases in ex-mods: from approximately 93% in year 1 to 89% in year 3—to 88% by year 6. If we average the annual ex-mod over the course of 6 years to 90%, we come up with the following formula:
Again, this is assuming you’re starting at the average; organizations with ex-mods that exceed 100% can expect even greater savings.
To see how we came up with these numbers, and how they correlate to statistics from the Occupational Health and Safety Administration, download our free study. To discover how you can transform your organization with a custom-built, comprehensive EHS and compliance system built on an automated platform, schedule some time with one of our experts.
