Workers Comp Resolutions Updated for 2014
Most Workers Comp Resolutions can change each year as do personal resolutions for the New Year. Workers Compensation’s basic underpinnings really do not change that much each year.
Below are the 2013 Workers Comp Premium Saving resolutions with a few updates for 2014. The updates are in italics.
Workers Comp Resolutions Update – Self Insureds will have an update tomorrow.
- Have a current copy of their Workers Comp loss run. Having online access is the best and up-to-date way to track your reserves. Paper loss runs are no longer satisfactory. Monitoring any changes in your company’s reserves can avoid a premium disaster in the future. Update – we are seeing more and more loss reserve leakage as employers are not being responsive enough in their reserve reviews if they are waiting on a paper loss run to be mailed to them. Leakage is basically the reserves that your company is charged but never spent by the claims staff.
- Have the most current copy of their company’s NCCI or Rating Bureau sheets. Rating bureaus may issue many different revised rating sheets during your company’s policy year. Your company needs to know the current status of your E-Mod (X-Mod) at all times. The Mod may not stay the same as the one your company was originally issued before policy renewal. The worst time to find out a Mod has changed is at premium audit. Update – we are seeing employers that have upwards of 20 E-Mod changes due to corrections, late reporting by the carrier, or state-based changes in a single year.
- Know their policy status. Is your company in or headed into an assigned risk pool? Are there better deals than the policy you are about to renew for another year? Are you changing to a different carrier? Are you expanding into other states? Update – Are there any ownership changes?
- Have a copy of the Five Keys to Workers Comp Savings handy. The keys are the same as they were 20 years ago. The keys are still current today. Follow the link for the list. These are proactive tried-and-true ways to reduce your Workers Comp costs on the front-end of an accident.
- Understand the premium audit process. There are many employers receiving very large premium audit bills. The premium audit process has very defined rules in every state that must be followed by the carrier, premium auditor, employer, and rating bureau. Disputing an audit without justification is just as detrimental as writing a premium check without the full justification of the amount. There are time limits placed on the carrier and employer on completing the audit process. Update – Filing your premium audit and bill away to work on at a later date can be costly.
- Know safety is the crucial element. The least costly accident is the one that never happened in your workplace. Workers’ Comp claims are called a “loss” for a reason. Post-accident savings are tough at best. The important Schedule Debit/Credits also directly result from your safety regimen.
- Bonus – if you have any questions, make sure your company knows which entity or
department to contact. This will save your company a large amount of time and money. Even contacting your agent does not necessarily preserve some of your rights as an insured. Update – we now recommend building a Workers Comp contact sheet – having your agent’s number is not enough if your company wishes to be responsive to your WC situation. Emails are very precious documentation and give the insurance personnel (Claims, underwriting, etc.) time to provide a response.
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