We often mistakenly believe that the insurance company pays for injury losses and accident costs. This is not true. Although some companies have guaranteed cost insurance where all losses are covered, many companies have deductible coverage. This means that the insurance covers only huge catastrophic losses over the deductible amount, typically $500,000 or one million …
The Hidden Cost of Workers’ Compensation
The true cost of workers’ compensation (WC) includes a lot of hidden cost; the actual cost is much higher than the insurance premiums or benefits paid. An easy way to determine if your risk manager knows his/her job is to ask if they know the indirect costs of the workers’ compensation program. If the risk …
Lower Your Experience Modification Factor
Three factors go into the calculation of your workers’ compensation (WC) premium: The rate assigned to each payroll classification in your business, The total amount of your payroll for each classification, And your experience modification factor. Your workers’ compensation premium is calculated using the formula payroll classification X $100 of payroll X experience modification factor …
Who are the Workers Comp Players?
There are many parties involved in the injury management process: Employer Your company is the employer. An employer can also be referred to as the “insured.” Insurance Broker Your insurance broker understands the risks of your company and obtains insurance to cover those risks in the event of a loss. A broker reconciles problems between …
Where Do I Get Workers Comp Help?
Your company’s workers’ comp costs are skyrocketing out of control! While you are not expected to know everything about workers’ compensation, you should know where you can get the help you need to control those costs – the Workers’ Comp Kit®. As part of the learning process the Workers’ Comp Kit® provides the materials and support needed to successfully implement a Workers Compensation Management …
Workers Compensation Abbreviations And Terminology
Workers Compensation Abbreviations And Terminology Terms Description ADA Americans with Disabilities Act AHI Account Handling Instructions AME Agreed Medical Exam ARE Actual Reduced Earnings ASI Account Service Instructions AWW Average Weekly Wage C/R Causal Relationship or Causally Related CIB Central Index Bureau DOI Date of Injury DOL Date of Loss Dx Diagnosis EE Employee ER …
Glossary of Workers Comp Premium Terms
Medical Cost Containment Strategies
Look at the Total Loss Costs (TLC), Not Just the Line-by-Line Items. The best technique to control medical costs in workers’ compensation is a Total Loss Cost (TLC) approach. To be truly effective in controlling the medical cost of workers’ compensation, employers and insurers should not limit their medical cost containment efforts to only one …
Management Roles and Responsibilities In A Workers Compensation Program
Employers who take control and direct the management of their workers compensation injury claims are most likely to see the best results in cost savings. The personnel involved often include the workers compensation claim coordinator, the floor or field supervisors, mid-management, medical personnel, legal, senior management and even the employees. Management Roles and Responsibilities The …
Proven Strategies & Tactics to Lower Workers Comp Costs
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