Arm Yourself with 3 Tips for a Workers' Compensation Bulls-Eye
1. Review Experience Mod WorksheetsMod worksheets contain a great amount of information. There are three key pieces of information that an employer should pay attention to: classification codes, payroll, and loss amounts. Employers should review their worksheet to ensure the classifications listed are in fact correct and match what's listed on their policy. Confirm payrolls are correct based on an insurance carrier audit. Finally, review all losses to ensure they're in fact losses associated with your company.
2. Conduct Claim ReviewsThe purpose of a claim review is to make certain an employers loss runs are accurate and loss amounts are correctly calculated. In addition, an employer should review all reserve amounts to ensure claim reserves are not being overstated. Timing is crucial. Once a policy expires, employers have no more than six months to conduct a claim review as data is sent to the NCCI at that time.
3. Implement a Risk Management StrategyNow more than ever, risk management and safety programs will be critical in controlling the cost of workers compensation. An organization can greatly reduce costs associated with workers compensation by preventing accidents and claims before they happen. Additionally, a loss control program should directly address common losses that are driving up a company's experience modification factor. Part of your risk management strategy should also include procedures for timely claim reporting, accurate accident investigation and a robust Return to Work program. These components can also impact workers' compensation costs and should be addressed with your broker or safety consultant.
If you're not controlling your losses, the NCCI changes could negatively impact your mod and increase the costs associated with workers' compensation insurance.
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