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“Buying and managing insurance through Embroker is a revelation compared to what we were doing before. The system’s totally transparent and easy to use. We can benchmark our coverage against other companies, see exactly how we’re doing on everything from policies to claims, and my service team is always there when I have questions.” – David Silverglide, CEO of Good Food Guys
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Founded in 2004 by a brother/sister team after an epic powder day on the Sierra mountains, Mixt is a fast and healthy food establishment that designs signature salads for people on-the-go. Just like their food supports a healthy lifestyle, Mixt nurtures their growing staff with the same wholeness. Their signature meals can be found in 10 locations across California.
Most California restauranteurs view Workers Compensation Insurance (Workers Comp) as just a cost of doing business, but savvy owners know that they can have influence over their final premiums if they develop a solid risk management strategy. When looking for a new angle to reduce their overall premiums, Mixt hired Embroker to assist in proactively managing open indemnity claims, reviewing current experience modification worksheet, and developing loss control policies to mitigate risk. They sought to gain a greater transparency into their policies and build upon an industry-leading risk management strategy.
Embroker assists Mixt in pursuing the lowest possible XMod possible
Embroker believes that a broker should play a vital role in helping clients reduce their own experience modification rate (XMod) —a premium tax or credit based on past claims performance. This data, benchmarked against a restaurant’s peers, greatly influences a company’s premiums/costs. Carriers design the premiums to not only pay existing claims, but also to build reserves for potential claims, cover overhead, and generate a profit. By actively monitoring open indemnity claims, advocating for and negotiating lower reserves, and constantly driving carriers to close claims, Embroker produces superior results for our clients.
Mixt’s XMod worksheet contains errors
During our audit, an Embroker claims examiner noticed three claims on Mixt’s loss runs that were reported incorrectly. We noticed that the claims were reported in their entirety on their XMod worksheet causing a “max split point” on their rate. The claims should have reflected less severity because a portion of the claim was covered under another policy. Errors on an XMod worksheet are common—in this case, the error was causing Mixt to pay an inflated premium for their Workers Comp.
The WCIRB re-promulgated Mixt’s XMod—reducing the current year’s rate by 26 points
Embroker worked directly with Mixt’s carrier to reclassify the claims from a “max split point” on their XMod worksheet to reflect claims with joint coverage. The carrier was obligated by law to report the new findings to the California’s XMod rating agency, The Workers Compensation Insurance Rating Bureau (WCIRB). Advocating directly for Mixt resulted in a decrease of their primary losses by over $25k and a reduction of their XMod rate by 26 points. Ultimately, this led to a decrease in their overall premium on their Workers Comp policy and more money in Mixt’s coffers.
Now that you have a better understanding of insurance for restaurants, you may be wondering how all of this affects your business and where to go from here. If you need more help or information, you can reach out to our team of expert brokers. Or, if you prefer to get started on intelligent quotes, create your Embroker account today.
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