Fact Checking & Low Workers' Compensation Rates
With the presidential election in full swing, fact checking seems to have become part of our daily routine. Journalists, and really anyone with a Twitter account, are fact checking what our presidential candidates say during the debates, but we often fail to do this in our own business practices, especially when it comes to selecting prospective clients.
For instance, staffing firms often equate low workers’ compensation rates with non-hazardous work. The assumption is the low rate is an indication of few or non-severe losses. Fact check – this is false. Potential clients must be assessed on an individual basis rather than depending on the rate for the classification they fall under to determine their acceptability. Evaluating the risk associated with a placement based solely on a low workers’ compensation rate is a risky maneuver and can potentially lead to an increased experience mod, an uptick in claims and increased workers’ compensation premiums if a thorough assessment isn’t done.
Rather than relying on rates to determine if a placement is safe for your employees, here are a few tips to fact check the environment at your prospective clients’ worksite and avoid any unnecessary insurance costs:
Request the client’s experience modification – A high experience mod usually means this is an unsafe environment and there aren’t many safety controls in place to prevent injuries from happening. Additionally, clients with a poor experience rating that fall under prohibited codes won’t be approved by your carrier.
Know the work environment for your temporary employees – If possible, schedule a visit to tour the facility where temporary employees will be working so you can confirm it’s safe and clean. Carriers prefer when their clients pre-inspect worksites because it illustrates they’ve taken a proactive approach to ensure the safety of their employees.
Ask questions – Don’t be afraid to ask your prospective client a few basic questions. Asking about their safety culture, training process for new hires and the personal protective equipment they provide will give you a better understanding of what the employees’ job duties will be and whether or not this is a safe work environment.
Not sure on what questions to ask so you don’t get caught on the wrong end of a fact check? Consult your friends at Assurance. They’ll know what questions to ask so you can uncover the truth in regards to safe workplace environments.
- Workers' Compensation E-Book
- Workers' Compensation Video Series
- OSHA's TemporaryWorker Initiative & Client Selection
- Four Topics for Your Host Client Safety Agreement
- Eye Spy Potential Risks Thanks to Workplace Inspections