Workers’ Compensation TIPS: Controlling Costs
Workers Compensation Insurance covers the cost of medical care and rehabilitation for workers injured on the job. It also compensates them for lost wages and provides death benefits for their dependents if they are killed in work-related accidents, including terrorist attacks.
Workers Compensation premium is based on the employer’s industry classification code and payroll. Employers with an annual premium above a certain amount are usually eligible for experience rating, which adjusts the premium up or down depending on the claims history of the company relative to other companies in that industry category. Therefore, in order to control costs, you must be proactive and implement effective risk management practices throughout your organization. Here are some risk management tips.
- Do regular safety audits of your facility. Conduct worksite evaluations, to determine if slight modifications to an employee’s workspace could help prevent future injuries. Safety awareness is key to an effective risk management plan.
- Create a safety committee. Have employees take responsibility for their teammates’ safe working styles. Use incentives, such as a free lunch to help maintain a safe workplace.
- Have job descriptions for all your positions. Job descriptions will enable a medical provider to determine what capacity the employee will be able to return to work—Full or Modified Duty.
- Start employees on a physical therapy program as soon as possible. This will help employees regain their range of motion and strength faster, which will help them return to full duty sooner.
- Enroll in the insurance carriers “medical provider network” as the employer will be able to better control the initial selection of physician and all care must be provided within the network for the life of the claim. Make sure to have a signed MPN form in each employees personnel folder.
- Make sure that your workers compensation insurance premiums are correctly figured. Check that your employees are properly classified per WCIRB requirements. All payroll audits should be reviewed for accuracy.
- Review all open workers’ compensation claims on a quarterly basis. If you have any questions regarding open claims, be proactive and contact the insurance carrier directly.
This is for informational purposed only. If you are suspicious of a claim, inform your workers’ compensation insurance carrier.