For anyone owning a company, workers’ comp insurance is an inevitable necessity. But by learning how the system works, your company’s benefits managers will be able to comfortably have a handle on what you are paying for, what affects your annual premium, and how to better manage and plan for unforeseen events. Over the next few blog posts, we'll discuss five proven ways to help construction executives reduce their workers’ compensation costs. Here’s a third consideration:
3. Review information on employee injuries
Speak to an insurance agent to make sure what has been paid on employee injuries is in line with what the insurance company is reporting to the rating bureaus. While this disconnect can simply be a matter of human error, it is often a result of miscommunication.
Communicating regularly with the insurance agent will ensure the most current facts of the case are being addressed and mitigate any potential errors. If an agent does not know what is happening with a work schedule or what to expect for medical treatment, the reserves may not be correct and, as a result, the experience modification factor (EMF) may be calculated Incorrectly. Any unnecessary reserves will increase your workers' comp costs. The goal is to eliminate any open cases that should be closed and minimize the amount of reserves on the claim in order to keep costs down.
Written by Nick Oates
Workers Comp Specialist