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Ways To Lower Your Workers Compensation Rates

Ways To Lower Your Workers Compensation Rates

By on Oct 12, 2016 in Blog | 0 comments

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Also – Follow these 21 steps to help lower your insurance premiums.

 

’21 Ways To Lower Your
Workers Compensation Rates’

At first some of these methods may seem simple but as with anything worth doing, the power is putting them into action!

Not Sure What the Term Mod Rate Means?

Let’s get started…

Method #1.
Choose an Appropriate and
Qualified Broker.

One of the most important decisions a company makes in reducing their workers’ compensation insurance is selecting their insurance broker. Select a broker who will partner with you and is appropriate for your organization size.

Make sure they have access to the insurance markets that target your specific industry. Don’t assume they have access to all markets, because they don’t. Choose someone who emphasizes about risk
management and prevention. (The least expensive claim is the one that never happens!)

Method #2.
Environmental hazards

Conduct regular reviews of the work site, machinery, work facilities and desktop workstations. Encourage workers to report anything that looks broken or unsafe. Modify operating procedures that unnecessarily expose workers to injury. Identify and correct hazards such as unsafe machinery,
dim lighting or poor air quality. Make sure that the company’s facilities are regularly maintained and that repairs are performed efficiently.

Method #3.
Assign someone in your company to manage your workers’ compensation claims.

This person should have some familiarity with workers’ compensation and safety, because the two go hand-in-hand. Check in with employees to make sure that they’re receiving the care that they need. Help workers get access to care providers, and set up programs to help them recover.

Foster a culture of care in your work force so that colleagues will help each other heal from injuries. Check in with employees who have been injured previously to make sure that they are not experiencing recurring
pain or injuries; this can help prevent future claims.

Method #4.
Use good hiring practices.

Always check a job candidate’s background before hiring, and require prospective employees to complete a detailed application form.

Method #5.
Choose a Qualified and Appropriate Medical Care Provider.

If permitted by law in your state, this tactic can help lower medical costs for your company. Your insurance carrier can provide you with a directory of preferred medical providers located near your business.

If workers have drawn-out injuries or chronic pain that they can’t seem to
recover from, the problem might be due in part to the health care provider.

Pass out evaluation materials to your injured employees to help gauge whether they’re receiving the right care and to learn what else the company can do for them. Bring up your concerns with your insurance carrier or the health care provider to make sure that any issues are addressed.

Method #6.
Create a modified-duty or transition-to-work program.

Assuming the employee is able to work, this type of program can bring benefits not only to your business, but to your employee, too. These programs can assist in the reduction of workers’ compensation losses and reduce the possibility of fraudulent claims. In addition, they aid the employee with productive work and can help them recover faster, while
providing better productivity for your business.

Helping injured employees make a speedy recovery and return to work by keeping in close contact with them. Make sure that the cause of their injury has been addressed and that they can feel safe returning to work.
Provide employees with opportunities to begin working on a modified schedule as they transition back to their regular duties.

Method #7.
Develop wellness programs.

If your employees are healthy and fit, they will be more likely to avoid injuries, and to recover quickly if an accident does occur. Wellness programs can range from free employee gym memberships to casual lunch
yoga sessions.

Well, that’s probably enough information for one day! Tomorrow you will receive an email with the next 7 ways to lower your compensation costs.

If you are in a hurry to learn more, you can sign up for our free 41 point evaluation of your workers’ comp policy to see if we can find common but relatively unknown overcharges by your insurance carrier and help you to get it refunded back or feel free to contact me by email or phone below.

Method #8.
Standardize claims procedures.

Standardize internal procedures and policies for referring employees to
health care providers. Have employees fill out standardized forms to
report injuries, and keep detailed records of all accidents.

Method #9.
Analyze your claims history.

Keep statistics about the injuries, this can point out a weakness in your
safety training or a potentially dangerous area on a job site. This, in
turn, can provide an opportunity to make changes that can make your
site safer and reduce your workers’ comp premium.

Method #10.
Promote shop and workplace safety.

Develop a positive employee attitude toward safety. Set a good example
by practicing good, safe work habits. Allow employees to report unsafe
work practices without fear of reprisal. Be accessible to employees.
Make sure good housekeeping rules are followed at all times. Enforce
safety rules.

Method #11.
Hold safety-training seminars.

Train your employees by holding regular workshops. Pass out information
on the correct handling of machinery, appropriate safety gear and
workstation ergonomics.

Teach employees about the dangers of the equipment that they use.
Distribute information on stretching prior to work, treating common
injuries, and following procedures in case of accident or injury.

Encourage employees to wear safety gear properly and to seek help immediately if they are injured. Then, reward employees for safe operating
procedures and behavior. Employees should learn about the physical and
health hazards of materials they work with, and how to protect themselves.

Employees should know how to use all your shop’s equipment properly and
what personal protective equipment is available to them. In addition, all
employees should know exactly what to do in the event of an emergency.

Method #12.
Supply safety equipment.

Encourage employees to use the right safety equipment for the job,
typically goggles, helmets and gloves. Provide support equipment such
as back supports, dollies, step stools or other equipment to help employees
perform their jobs safely.

Method #13.
Provide ergonomic evaluations.

Administrators, assembly-line workers, bank and retail clerks, and other
workers can benefit from ergonomic assessments. Find a certified
ergonomist to evaluate individual workstations, and make any changes that
he or she recommends.

The right chairs, tables, keyboards and phone equipment can help workers
avoid chronic pain and injuries such as carpal-tunnel syndrome. Follow up
with employees to make sure that the changes were helpful; if they were
not, bring the ergonomist back for a follow-up evaluation.

Method #14.
Know your experience modification rate.

Workers’ compensation rates are set by the states. The states establish
manual rates for employers in various types of business. This sets a
baseline rate, which undergoes many calculations, including the experience
modification rating.

Experience Rating:
* Compares your losses to the average risk of similar businesses.
* Is usually computed from the latest available data from the last three years.
* Is designed to give you some influence on your final premium.
* Provides incentives for safety programs.
* Promotes occupational health and safety.

As you can see, there is a lot to learn about lowering your workers’ compensation rates.

You could try to do it yourself or you could get the experts involved. If
you need our help, you can respond to me by replying to this email or you can call me at (877) 506-2220.

I trust that you are finding this series worthwhile and are discovering some
great ways to lower your rates!

As promised, here are the final 7 tips…

Method #15.
Check classification codes.
Workers’ compensation premiums are determined by the risk level of job
positions. Misclassification is one of the most common reasons for
overpaying on workers’ compensation. Insurers have over 600 categories
and standard exceptions to choose from when determining a workers’
classification.

Non-hazardous jobs have much lower rates than hazardous ones. If you
misclassify even one worker into a high hazard job, your total premium
can increase significantly. Check that your company and employees are
properly classified.
Method #16.
Conduct a payroll audit.
Your workers’ compensation premiums are usually based on your regular
payroll figures, excluding overtime. Many states may allow you to deduct
overtime pay to straight time for the purpose of figuring your payroll, but
you may need to keep special records to do so. Check with your state
office of employment for your state’s guidelines.
Method #17.
Compare insurance policies.
Learn more about your state’s workers’ compensation system and the
options for coverage. You don’t have to be an expert, but you should be
able to compare available policies and make sure that your company’s policy
is being administered properly. Depending on the state that your company
operates in, it may be able to choose between state-run and private
coverage.
Method #18.
Use a deductible.
Thirty-one states permit employers to reduce their workers’ compensation
premiums by paying a deductible, usually somewhere between $100 and
$5,000. Contact your state insurance office or your insurance broker to
find out if you can use this money saver.
Method #19.
Consider Self-Insurance as an Option.
If you are a large enough employer (100 employees or more), you may
want to look into the option of self-insuring.
Method #20.
Help stop fraud.
Although most claims are legitimate, too many are inflated or fraudulent.
You don’t want to pay for that. As an employer, you can assist the
investigative process at its most crucial point: when the claim is first
reported to you.

Red flags for potential fraud include:

* The injured employee is disgruntled or facing imminent firing or layoff.
* The injured employee took unexplained or excessive time off prior to the
accident.
* The injured employee has a history of reporting subjective injuries.
* The accident has no witnesses and the injury is not consistent with the
facts.
* Fellow workers hear rumors that the accident was not legitimate.
* The accident occurs shortly after the employee reports to work on Monday.
* The accident occurs in an area where the injured employee would not
normally be working.
* The incident is not promptly reported to the supervisor.
* The details of the accident are unusually vague.
Method #21.
Hire consultants.
You may be able to lower your premium by hiring an independent auditor to
review your policy and each of your employees on the basis of the job they perform.
Because premiums increase along with on-the-job risk of injury, you want to
be sure that everyone is assigned to the correct category.

For example, the clerical person who manages your truck repair schedule
should not be in the same category as a roofer just because they both work
for your company. Similarly, a heavy equipment operator should not be in
the same class as a security guard.

The risks simply are not the same for these disparate job tasks. In
computing your premium, however, your insurance company may send an
auditor who spends only about an hour at each job site determining how to
categorize the various jobs at that site.

Often, the unintentional result is the misclassification of employees.
Ensuring that this does not happen can result in a refund for past payments
as well as save you a lot of money in future premiums.

So there you have it…21 Ways To Lower Your Workers Compensation
Rates Now!

You should have all the tools you need to begin lowering your rates today.

Talk to you soon,
Randy Russell, CPA
Work Comp Recovery Specialist

Effects outside of discounting your premium.

Many safety conscious corporations are refusing to use the service of venders or subcontractors who do not control their Experience Mod or have an experience modification in excess of the industry average.

Most companies who’s annual premium is in excess of $3,000 will receive an Experience Modification Rate. Your Experience Mod is calculated by the National Council on Compensation Insurance (NCCI) or in some states an independent agency. Each year insurance carriers report to the calculating agency your class codes, payrolls and losses for the last five years, for cost reductions. Remember this year’s claims will affect your Experience Mod next year.

Example of Experience Modification Rate Applied to Your Premium
Class Payroll Rate Per Premium Code $100; Class Code 8810 =$8.5 per hundred in payroll
Annual payroll = $800,000; Annual Workers’ Comp premium = $66,000
Experience Mod= 1.20 = add to premium $13,200 (20% worse than industry) = Modified Premium $79,200

Example of how using the Aerial Tool Bin  can help lower your Experience Modification Rate. Keep your companies injury rate down working safer with the Aerial Tool Bin. Therefore, 11 workers x an $80 Aerial Tool Bin = $880 to save $13,200!

Also keep in mind the calculation backing our claim to “Save your Company $6,500 per year PER WORKER with this Revolutionary Product!”

Note! By using the Aerial Tool Bin employees who work on aerial access equipment can save a minimum of 1/2 hour a day while minimizing back stress and ankle injuries. At the same time, helping to lower insurance premiums.  

 

Example: If you had 4 employees at a conservative rate of $50.00 / hr. saving  10.0 hours per week, Their company could potentially save up to $500.00 or more in just one week, from a time-saving aspect alone! One employee would save $125.00 each week totaling $6,500.00 Per Year

***This product could pay for itself in less than one week!***

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