Gallagher McIntyre

Client Services

Case Studies

Utility Contractor – Recovered Workers Compensation Premiums

Underground utility contractor with more than 150 employees and a strong safety record.

Business Situation/Challenge

This client was enrolled in an Owner-Controlled Insurance Program commonly referred to as a “Wrap Up.” During this time, four of their employees were seriously injured when struck by another contractor’s dump truck. These claims were paid by the Wrap Up Insurer who coincidentally was also the insurer for the operator of the dump truck. The General Contractor on the job was insured under the master Commercial General Liability Policy through the Wrap Up, which also was insured by the same carrier.

Not usually a concern until there is a large claim caused by another party’s negligence, loss experience under the Wrap Up would find its way into the client’s Experience Modification factor. These claims were identified under the experience rating worksheets and an estimate of the impact was provided to the client using The McIntyre Group’s in-house modeling software.

Given the nature of the claims, subrogation or recovery by the insurer who paid the workers compensation benefits was likely. This would mean that a “Revision of Losses” in the experience rating formula was possible. In normal situations, the workers compensation carrier would attach a lien against any suits brought by the injured parties against the general contractor or the owner of the dump truck, and if a recovery were made, an offset would be filed with the rating agencies (“C-Report”) to adjust the experience rating calculation.

Given the carrier’s broad involvement in this claim, there was little motive to expedite the recovery effort until heavily prompted by our claims team working collaboratively with the client.


Gallagher McIntyre resolved the issues by:

  • Pushing the carrier to offset the losses they were charging to the client’s Experience Modifier by the amounts subrogated
  • Upon receipt of the actual recoveries, the carrier was prompted by repeated and intense interest in this matter to file the necessary “C-Reports” to reduce the client’s actual losses in not only one year but in three years of experience rating


By accomplishing this adjustment, Gallagher McIntyre assisted the client in recovering nearly $110,000 in Workers Compensation premiums that were paid under its current and past policies.

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