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Workers Comp Safety Programs – Secret Element In One Chart


Workers Comp Safety Programs – One Of The Big Justification Secrets

Most workers comp safety programs have been reduced or cut back to a minimum.

As the economy has tanked, companies such as yours are looking for ways to save on workers comp safety programs more than ever.

Picture Of Two Employee Safety Programs Whispering

I have seen many blog posts and heard many discussions where everyone equates safety and the E-Mod. However, there are discounts or debits that can sway your Workers Comp premiums up to 50% (+25% or -25%).

The discount or debit (egad!) can be up to 25% and is directly related into your safety program. Instead of making up a simulated schedule, I will use the state of Pennsylvania’s schedule of debits and credits. I have noticed that the Scheduled Debits and Credits are almost the same for each state.

Many Risk Managers and Safety Personnel Departments are being scaled back in this economy. Look below to see what safety and Risk Management can bring to the table, so to speak.

Safety and Risk Management may help your company’s E-Mod, but there is also a possible 50% swing in your Workers Comp budget. As they say, the proof is in the pudding. Please refer to the pudding below. I highlighted a few things in the schedule.


The loss/or expense components of insured risk’s premium may, at the option of the underwriting carrier, be adjusted in accordance with the provisions of schedule rating to reflect defined characteristics of the risk which, in the sole judgment of the underwriting carrier, are not adequately reflected in prior experience of the insured risk.

At the option of the underwriting carrier this plan may be applied to any risk regardless of premium size.

Illustration workers comp safety programs schedule
Wikimedia Commons – Gentaur

All statistical reporting requirements of the Bureau and the Pennsylvania Insurance Department, including provisions of the Statistical Plan Manual, Annual Calls for Financial Data Experience and Pennsylvania Schedule W, are applicable to business written in accordance with this plan and must be complied with by carriers using this plan.

Schedule rating credits or debits must be applied as a percentage factor to premium computed after experience modification (if the insured is eligible for experience rating) and before carrier premium discounts and expense constants if applicable.

Schedule rating adjustments for any given risk shall be based on information contained in the carrier’s files and records when the credit or debit is determined, and such supporting information must be retained in the carrier’s files and records for such risk throughout the period of time in which the policy is subject to audit under provisions of the policy.

Acceptance of a policy by an insured shall constitute agreement with the amount of schedule rating credit or debit, if applicable, or with the absence of any such credit or debit, if not applicable. Upon request of the insured a carrier shall make available documentation supporting the derivation of any proposed schedule rating credit or debit.

Upon request of the Pennsylvania Insurance Department or the Bureau a carrier shall make available documentation supporting the derivation of a schedule rating credit or debit for any specified risk or risks.

No schedule rating credit or debit may be effective prior to the underwriting insurer’s receipt of information for a risk supporting the schedule rating credit or debit in question. No schedule rating credit or debit may be changed midterm without the mutual agreement of the insured risk and the underwriting carrier.

The following risk characteristics are eligible under this plan for assignment of credits or debits subject to the maximum ranges set forth below:

Features of workplace maintenance or operation-10% to +10%
Risk elements not addressed in the Classification Plan-10% to +10%
Availability of medical facilities in or near workplace-5% to +5%
Safety equipment/devices present in/missing from workplace-5% to +5%
Extraordinary safety programs applicable to workplace-5% to +5%
Qualifications of employees-10% to +10%
Accommodations/cooperation with carrier by management-5% to +5%
Considerations related to policy expenses-5% to +5%
Other risk characteristics not addressed above (specified)-10% to +10%

The maximum schedule rating credit permissible for any risk under this plan is 25%.

The maximum schedule rating debit permissible for any risk under this plan is + 25%.

The above chart should justify most workers comp safety programs.

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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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