“Case Study: Reinforcing Steel Shop Lowers Premiums 25%”
Case Study: Reinforcing Steel Shop Lowers Premiums 25%
At Metal Shop Insurance, we understand that every metal fabrication business faces unique risks — from handling heavy steel bars to operating complex machinery. This real-life success story shows how one California-based reinforcing steel fabrication shop reduced its worker compensation and General Liability insurance costs by 25% through safety improvements, proper classification, and tailored coverage.
The Challenge: High Premiums and Misclassified Operations
Our client, a mid-sized reinforcing steel fabrication company in California, was facing unusually high insurance premiums. Their insurance provider had classified them under a broader “steel manufacturing” code rather than their correct WCIRB code — Class 3039: Reinforcing Steel Fabrication. This error inflated their risk category, resulting in higher costs for both worker compensation and General Liability insurance. Additionally, their policy did not fully reflect modern safety measures and OSHA compliance already in place within their shop.
Without accurate data and industry-specific coverage, they were overpaying for insurance that didn’t match their true exposure levels.
The Solution: Customized Risk Review and BOP Insurance Integration
Our team at Insurance for Moving Companies conducted a detailed review of their risk profile, job classifications, and safety records. We identified gaps and adjusted their policy to reflect actual operations and workforce distribution. The updated policy combined multiple coverages into a single BOP insurance package — integrating property protection, business interruption, and liability coverage into one streamlined policy.
We also introduced a safety training program tailored to reinforcing steel fabrication, which improved their OSHA compliance record and helped reduce future claims. This not only decreased immediate costs but strengthened their long-term risk management strategy.
The Results: 25% Premium Reduction and Improved Safety Scores
After implementing these changes, the client’s annual premiums dropped by nearly 25% within the first renewal cycle. The correct WCIRB classification lowered their base rate, while improved safety scores further reduced their experience modification factor (X-Mod). Additionally, with a consolidated BOP insurance plan, they simplified policy management and gained more comprehensive protection.
Today, this California reinforcing steel shop continues to operate with confidence — enjoying strong coverage, lower costs, and the peace of mind that comes from working with experts in metal industry insurance.
Why Choose Metal Shop Insurance for Your Fabrication Business?
We specialize in providing customized insurance solutions for all types of metal fabrication and manufacturing operations. Whether you’re fabricating structural beams, reinforcing steel, or precision components, we ensure your coverage reflects your actual risk — not outdated classifications. With expert support and responsive claims handling, Metal Shop Insurance helps metalworkers build safer, more resilient businesses.
Frequently Asked Questions (FAQs)
1. How did reclassification lower the client’s premiums?
By correctly classifying the business under WCIRB Code 3039 (Reinforcing Steel Fabrication), the risk level dropped, resulting in lower base rates for both liability and workers’ comp premiums.
2. Can a BOP policy really lower insurance costs?
Yes. A BOP insurance combines multiple coverages under one plan, which typically costs less than buying separate policies individually.
3. What role did safety programs play in this success?
Enhanced safety programs reduced the shop’s injury frequency, improving its OSHA record and lowering the experience modification factor (X-Mod), which directly impacts premium rates.
4. How can I find out if my metal shop is misclassified?
Contact Insurance for Moving Companies for a professional policy audit. Our team can review your WCIRB codes, safety programs, and current insurance coverage to identify opportunities for savings and better protection.