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| Workers Compensation Insurance has been referred to a the “burden cost”
of employing staff. Depending on the size of your staff and the amount
of your payroll it can have a dramatic impact on your bottom line both
positively and negatively. A positive impact is a rate and experience
modification factor that is below the State’s manual rate. A negative
impact is an experience modification that is above the manual rate.
The better than average losses, the lower amount will have to pay as a
percentage of payroll. The “claim experience” reports are important
to watch. You need to note the amount the insurance carrier has paid,
but more importantly what they have reserved to pay. Work with your
carrier to get first-aid claims quickly.
An “experience modification” calculated by your State’s Workers Compensation Bureau is established at your mid term policy period based on the policy history from the three years commencing 18 months previously. Once a modification rate is published it is difficult to get it change if an error is found. For this reason you what to be sure that the insurance carrier is closing claims and not leaving big reserves in claims. A reserve is the same as a paid claim. It impacts what you will pay in premium in the future. Many of our new clients are with us a frustration with their previous program and the professionals servicing that program. One method to lower the cost of a claim is to negotiate with and or designate an Industrial Care Provider that can work with the insurance carrier. This is significant, especially if you are in a State that supports “managed care” in the Workers’ Compensations system. To protect your interests as representatives of the owner group or management company you need to determine if you can direct your employees to a Contracted Industrial Managed Care facility. Contact your insurance carrier or your insurance Agent. Find out your options in the state you operate. Exercise your rights as an Employer to control your “Burden” costs by implementing a Managed Care program to control claims and get them closed early. If you need help call us. |