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Top 10 Workers Comp Premium Reduction Resolutions – Cut Comp Costs


Top 10 WC Premium Reduction Resolutions

The New Year is up on us. The following is a list of New Year Resolutions for Workers Compensation premium reduction strategies. This list was generated from over 16 years of data that I compiled from clients and the general Workers Compensation marketplace.

Picture of fireworks Premium Reduction 2012
Wikimedia Commons – Amgalanbaatar

1. My company will institute or improve our safety program. The best way to avoid a premium increase is to avoid accidents. Your safety program can also save your company $$$ with Schedule Credits. Your company can also end up paying more $$ with Schedule Debits. I wrote an article on Schedule Debits Credits here.

2. My company will organize all of its paperwork with all pertinent documentation for the yearly premium audits. Excel spreadsheets can be your best ally here. If your documentation is straightforward and organized, your premium audit will be a painless process.

3. I will look over and understand my company’s Workers Compensation Experience Modification sheets. I will monitor the E-Mods/X-Mods. I will realize that the Workers Compensation premium system is a delayed system and will not expect immediate results from any premium reduction efforts.

4. I will treat my company’s loss runs as very important. I will obtain online access if possible at all costs as an aid to controlling my company’s E-Mod. If I am unable to have online access, I will retrieve the loss runs monthly and review them very carefully.

5. I will follow the Five Keys To Saving on Workers Compensation Claims. I do realize that the claims filed are the engine of the Workers Compensation premium system and will file them quickly and accurately.art 2.

Picture Of Hand Illustrating Premium Reduction Arrow Up

6. For CFO’s – I will not consider Workers Comp premiums as an overhead expense or a cost of doing business. I will look at the premiums as a tax (of sorts) and structure our insurance program similar to our tax structure. I will consider Workers Comp as a variable cost, not a fixed cost.

7. I will read the Workers Comp policy before singing from the front to back including any amendments or riders. I will highlight any clauses that I question. I will review these highlighted areas with my agent before I sign the policy. I do realize the policy is a legal contract and should be treated as such.

8. For self-insured’s, I will look at more than just the cost of processing the Workers Comp claims as some TPA’s are better than others. I will heavily analyze if one TPA charges less, but costs more on claims. I will also factor in other fees such as bill processing fees, rehabilitation nurse fees, and other ancillary services if I am using the TPA’s other services. I will always explore all vendors for the ancillary services.

9. I will keep myself updated on any Workers Comp law changes or important cases in the claims jurisdiction where my company operates. I will subscribe to at least three Workers Comp online publications.

Hand Presenting Premium Reduction Line Graph

10. I will institute in my company (if large enough or if you have remote workers) an efficient way to report injuries so that my company is able to file a First Report of Injury with our insurance carrier or TPA within 24 hours of the occurrence of an injury.

11. Bonus – I will institute a reporting procedure to the owners of the senior management of my company that distills down our Workers Comp situation in very complete yet concise terms. I will always keep very current on our Workers Comp situation so that my reports are up to date as possible.

12. Bonus-I will find out the names of every adjuster that is working on my Workers Comp claims and start a dialogue with them by email. I will not phone the adjusters.

There are many more resolutions that can be found on the blog. I just did not call them resolutions.

For more on resolutions, check our the 2009 Workers Comp resolutions.

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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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