Get Control of Workers Comp
Get Control of Workers Comp–Establishing a Process to Consistently Control Workers’ Compensation Claims Should Be a Priority for Every Business
By Steven B. Paulin, CIC
Why? Because workers’ compensation is the most manageable of all corporate insurance costs; in fact, it is 60% – 70% controllable.
All businesses have a past, with an expectation for the future. To ensure a positive outcome, it is imperative that a business have the appropriate processes in place. This has specific relevance to how a business manages its workers’ compensation program.
Consider two competitors with similar operations who hire from the same labor pool and compensate their employees equally. How do you explain that one business has a perennially high experience modification over 125%, while the other is consistently around 75%? The lower mod company is experiencing the positive future it wants by effectively implementing and managing their workers’ compensation risk management program through a defined process.
Implementing the right process is even more critical today because California businesses are experiencing a trend of increasing rates. The favorable competitive workers’ compensation market is over. Higher rates mean more financial pain, as businesses absorb the cost at the worst possible time. The challenge is to know where to focus the time and energy, and what resources will provide the greatest benefit.
Distinguishing between those outside influences that drive workers’ compensation costs (rates, system structure), which cannot be controlled, and the internal influences within an organization that are controllable (hiring, safety incentives, medical clinic partnership, return-to-work programs, etc.), is the first step to understanding where and how to allocate the time and resources.
Your insurance and risk management advisors should be able to assist you in implementing a workers’ compensation claims reduction and control process. Best practices included the following:
- Employee Selection
- Claims Evaluation
- Safety Program Management
- Accident Investigation
- Occupational Care
- Litigation Management
- Safety Incentives
- Utilization Review
- Disability Management
- Claims Administration
Businesses that embrace effective workers’ compensation loss prevention and control processes will realize a competitive advantage in their industry through a lower workers’ compensation cost structure, enhanced productivity and increased profit.
If you are interested in more information about how to implement an effective workers’ compensation control program within your business, please contact us at email@example.com and we will be happy to direct you to a professional who will be able to assist you.