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.
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.
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.
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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