Audit your workers' compensation programs before you go to incentive programs, fraud control programs, third party administrators or managed care services.
By auditing your current program, the risk manager learns why workers' compensation costs are high and what is needed to correct the situation.
Don't look at workers' compensation as a small area. It's really saving your capital – your human capital resources.
Eight tips for conducting an audit:
1. Companies should know what their losses are, which divisions are accruing the most losses.
2. Review the loss data to see what's sticking out like a sore thumb.
3. Ask about "sore thumb" topics when conducting audit interviews. An interview is only one way of finding out information.
4. Review a few of the files or have the company doctor review a couple of the files before you begin.
5. Use focus groups.
6. Talk to employees, management and the insurance company.
7. Develop a brief questionnaire with open-ended questions. How do you feel about the company? Have they treated you fairly? Do they listen to what your needs are? Elicit that information in a more informal discussion group, either one-on-one or in a focus group.
8. The insurance company is a valuable source of information. Chances are they know very well what the morale is in the group because they work with the people who have tiled claims.
Some problems uncovered through the audit:
1. Companies don't know what the full range of options is. They'll buy an incentive program when they don't need an incentive program at all. First, you really need to understand why your problem is a problem and a big part of it is value systems in the workplace. (workersxzcompxzkit) I met with a company today paying over $500,000 in workers compensation premiums and a 1.6 Mod, that had no idea whether to ask their broker, their carrier or others (like myself) how to reduce their workers compensation cost. The problem, "they don't know what they don't know," so they can't ask for specific assistance. The broker and/or insurance company SHOULD recognize this and offer help, but often they do not.
2. A company with poor morale could turn up in an audit as people exaggerating the length of their claims. Here you may need a fraud control program, not an incentive program. In other words, you might need to use the stick instead of the carrot.
"FRAUD PREVENTION" PODCAST click here: http://www.workerscompkit.com/gallagher/mp3 By: Private investigator with 25 years experience.
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues. ©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
