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Workers’ Comp Costs – Six Keys To Saving Premiums


Reduce Your Workers’ Comp Costs – Six Keys (updated)

Update – Six Keys To Saving on Workers’ Comp Costs.

Picture of Piggy Bank Workers' Comp Costs and Money

The mainstay of all my presentations is the (used to be three) “Five Six Keys to Saving on Workers’ Comp Costs.” This is a time-tested list that will reduce Workers’ Comp costs for any employer in any jurisdiction. These come from over 20 years of analyzing claim costs, and a study that I performed with over 7,000 Workers’ Compensation files.

They are:

  1. Timely Filing of the First Report of Injury – within 24 hours- this is easy to fix.  Your company’s operation manuals should have a section on handling and reporting injuries.   Your operations manual training should contain a section on reporting injuries.
  2. Physician’s Network – where does the employee treat?  Your company operations manual should have a section on where to send the injured employee if injured or seriously injured.
  3. Return to Work Program – prevents large cases.  All companies should have a return to work program.  The physician network should have a copy of all job descriptions known as a job bank.
  4. Employee Treatment by Employer, Doctor, Adjuster – reduces malingering and fraud.   Trust by the employee makes the first three keys more easily attainable.
  5. Making Workers’ Comp a Priority – do you just write a check to the TPA or carrier?  Taking WC off the back burner usually results in savings.
  6. Understanding The Premium Audit Process- how your final bill has been calculated.  The Premium Audit is the final bill from the carrier.   Many articles in this blog have been written on premium audits.

I found that in a study of the 7,000 Workers’ Compensation files if an employer does not do just one of # #s 1 – 4, the claim cost will increase by 400%. And yes, if none of the first three are done properly the employer will pay 1,200% more than a similar employer that is attending to all of the first three of the five.

I will cover all of them individually over the next five weeks. I will be releasing a manual in the next month that goes even deeper into detail.

Tomorrow – How is Your Workers’ Compensation Premium Calculated?

Also Read: The Six Secrets to Saving on Workers Comp Premiums

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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