What? You thought there was more? Turns out that for experience rated policyholders there’s probably no single more important thing they can do than get a handle on their workers compensation claims.
The importance of claim control, in regards a workers compensation policy, hasn’t changed since forever! It’s one of the basic things an employer can do that has a positive, direct impact on the cost of their workers compensation policy. Those employers who have in place safety and claim control programs enjoy much more control over their workers compensation premium fate than those that don’t.
Claim control really begins with organization and education. Organization in regards procedures developed, practiced and followed when a workers compensation claim occurs. Of course the best claim control is to never have a claim but that’s the kind of thinking covered with fairy dust that’ll get you in trouble! Claims happen so it’s the prepared policyholder employer that will have a step up when they do. Education in regards gaining an understanding of the complexities of the workers compensation product. Without knowledge about how it all fits together you don’t really have anything to organize!
Employers tend to think that reducing their workers compensation premium means shopping their coverage around to find the cheapest rates when in fact they should first look at their own operation. Employers who have active safety programs, in-house claims investigation and written procedures to follow when a claim occurs will, in the long run, benefit from the time to develop and implement such programs.
So here’s a recipe for reducing workers compensation premiums:
- Learn how claims effect your premium. Work with an outside consultant to better understand your experience modification rate and how it is developed.
- Examine your own operation. Identify areas, operations or materials that have in the past caused or been responsible for work comp claims.
- Develop an active safety program. Remember the best work comp claim is NO work comp claim!
- Develop a return to work program. Mitigate the claim expense by getting your worker back to work as quickly as possible in a capacity guided by their medical provider.
- Develop claim handling procedures and follow them when a claim occurs. This should include how to report a claim, identify who is responsible for reporting the claim, conducting a claim investigation and contact and followup with your injured worker.
- Claim Control!
A workers compensation policyholder or employer needs to have these things in place before a claim occurs. It’s always been the out of control or run away claim that surprises an employer when it happens and it’s those very claims that can destroy an otherwise excellent experience modification rate or EMR!
Hope this helps you out! Thanks for reading!