Horizon America, LLC achieves extraordinary mod rate

Horizon America, LLC is a staffing agency serving the light industrial and manufacturing sectors, currently operating across 13 locations. The company faced challenges in securing workers’ compensation coverage outside of the assigned risk pool. Although the owner had extensive experience in staffing, the company was new to business with a limited track record, and their broker lacked expertise in staffing. The company needed a robust risk management strategy to obtain competitive pricing in the standard marketplace and foster growth.

To address these challenges, Horizon America partnered with Marsh McLennan Agency’s (MMA’s) staffing & PEO practice. Horizon America had a very low loss ratio and strong risk management practices. Despite their limited tenure in business, MMA was able to place them with a carrier partner that became comfortable with them through an extensive operational assessment. This partnership has allowed the company to expand operations by capitalizing on their competitive rates. The carrier’s focus on operational controls and staffing expertise helped Horizon America continue to develop a systematic approach to vetting new clients and assess potential risks. Partnering with MMA in the evaluation of all prospective clients and job duties helped the company grow strategically while minimizing unnecessary risks.

Horizon America has continued to reduce their costs by taking an intermediate deductible. This decision not only reduced their premium but allows them to directly benefit from reduced claim costs achieved through an engaged approach to risk management.

Horizon America’s commitment to safety and risk management has yielded impressive results:

• Successfully expanded into Indiana as JM Companies with an additional carrier partner.
• Consistently decreased its experience modification factor year after year, achieving an unheard-of NCCI mod rate of 0.45 for a light industrial staffing agency, a -56% NCCI Mod reduction for both entities.
• Maintained a developed loss ratio of 26% while decreasing average workers’ compensation rate by 47% in New Jersey.
• Grew payroll by 1000% over 5 years in Indiana while running a developed loss ratio of 11% and achieving a 56% decrease in average workers’ compensation rate.
• Maintained a strong relationship with their workers’ compensation carrier partner for over 9 years, showing receptiveness to feedback and actively implementing recommended improvements.

Horizon America exemplifies excellence in risk management within the staffing industry. Their proactive approach to managing risks, commitment to safety, and strategic growth initiatives have led to remarkable achievements, including a significantly reduced experience modification rate and successful expansion into new markets. Their dedication to continuous improvement and engagement with both their insurance partners and clients positions them as a Managing Risk and Maximizing Health (MRMH) Award recipient.