3 Ways to Reduce Work Comp Exposures

You’ll hear a lot about the ways to lower your work comp costs, reduce your experience modifiers and improve your loss histories. But what about the real things you can control? Your Exposures. Here’s a few tips on lowering the actual risks you may face when it comes to work comp.

1. Do you conduct pre-hire fit for duty exams?  More than two in three companies don’t spend the time or money on these exams, aren’t aware that they were available, or don’t  know how to conduct them. The bottom line: You don’t want to hire a future Comp claim.
2. Have you ever calculated the total cost of your Workers Comp claims? Only one in three businesses do so. For every dollar paid in claims, there’s at least another dollar of bottom line impact in reduced productivity, lost customer satisfaction, cost of replacing an employee, etc. Bear in mind that insurance companies have little incentive in preventing or managing Comp claims, especially when the interest rate on your modifier is in the double digits. In fact, it’s the most expensive money your company will ever borrow.
3. Do you have a formal return-to-work program? Once again, less than half of companies do so, even though these plans make eminent sense. The program should acknowledge concerns and fears by both employee and supervisors. Many Comp claims take on a life of their own because managers ignore injured employees as “damaged goods,” rather than trying to nurture them back to work – and then wonder why some of them malinger on claims.

I encourage you to read this report, and then follow up with us if you have any questions.