Workers compensation claims play a significant part in premium calculations when applied to an experience rated workers compensation policy. It’s well known how claims effect workers comp premium. Get a handle on claim costs and you’ll be rewarded by lower premiums! Which leads to the question; How can an employer reduce their claims cost?
Here’s a few tips and suggestions all employers can use:
- Eliminate Claims: While it may not be possible to eliminate all claims, why not make this your goal? One of the most impressive signs I remember is one found in a clients manufacturing plant. It said ” 0 Employee Injuries For 545 Days.” It was a constant reminder, easily visible to all workers and visitors in the plant, that safety and working in a safe manner was important to the employees, owners and management of the factory. Eliminate claims and you eliminate claim costs!
- Beef Up Your Safety Program: If your business has a risk management department don’t eliminate or cut back on their funding! Reducing claim costs begins with those responsible for developing and implementing your safety program. A strong safety program, backed by company ownership, will always pay off!
- Review And Improve Claim Reporting Procedures: A claim begins to go wrong when it’s not reported in a timely manner. Be sure all employees and line managers know how and where to report a workers compensation claim. It is extremely important that a claims representative be in touch with the injured employee as soon as possible. Early action taken will lead to a better claim process.
- Return To Work Program: Get your injured worker back to work as soon as possible! It’s important for the worker and will help reduce your claim cost. Institute a workable return to work program, they work!
- Independent Claim Review: Have your workers compensation claims reviewed by an independent outside consultant. Reserves, medical, indemnity and claim expenses all contribute to the cost of a claim and all should be reviewed for accuracy. A single error in experience data reported to the rating organization can cause an employer to have a serious increase in their experience rating and premium.
Reducing claim costs has a lot to do with common sense. The more an employer is involved in the claim process the better chance they will have of controlling their claim costs. Controlling claim costs will lead to better, more affordable premiums!
Hope this helps you out!