Performance & Hotrod Business May '14

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May 2014 n Performance & Hotrod Business n 101 vice president of commercial insurance for Denver-based The Wright Group Services. "Business owners don't have to start from scratch," Rossi says. " There are resources out there from insurance carriers and agents. I recommend you start with resources that are available and build your program on that. Every insurance carrier that writes workers' compensation has resources to provide." Workers' compensation is a form of insurance that provides wage replacement and medical benefits to employees injured in the workplace in exchange for manda- tory relinquishment of the employee's right to sue his or her employer for negligence. Workers' comp laws vary from state-to- state and by industry, however, accident- and injury-free workplaces can generally benefit from reduced insurance costs. "One of the biggest benefits to main- taining a safe work environment is money," says Darren Nickelson, owner of Memphis-based Indy Street Rods and Classics. "A shop is very dependent on its guys, and if someone gets hurt and is out for a week, it can put you way behind. Not only with the time it takes to build a car, but also with the money you draw from that employee. For ever y hour they're not working on a vehicle, you can't charge that hour against that vehicle." Workers' com p en sa- tion is class-rated, and the classes for automotive busi- ness range from trucks and automobiles to body work, according to Rossi. A facility's classifica- tion is part of an experience rating to help determine its experience compared to other businesses in the industry of similar nature. Shops are rated with an experience modifier (e-mod), a multiplier applied to the premium of a qualifying policy that provides an incentive for loss prevention, according to Denver-based Pinnacol Assurance, a source of workers' comp insurance. A business' e-mod is deter- mined by comparing actual losses, such as injuries or illness, to expected losses. "If your losses are pretty high, you could end up with an experience mod that's over 1," Rossi says. "A 1.10 rating could mean a 15-percent surcharge to your policy, while a 0.85 mod could mean that you get a 15-percent discount. If you have a 1, you're pretty average compared to your industry." Safety inspectors notice obvious mistakes as well as hidden prob- lems preventing a lift from function- ing as intended. A shop is very dependent on its guys, and if some- one gets hurt and is out for a week, it can put you way behind. PHBMAY.indd 101 4/2/14 2:04 PM

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