Workers’ Comp Premiums are going up in 2009 primarily due to the economy. To keep lower premiums, some companies will choose higher deductible levels, just like many individuals have done with their health care coverage premiums. All losses within retained levels will directly impact your company’s bottom line. Here are 3 things a company can do NOW to reduce their workers’ comp costs in 2009.
1- Get your National Workers’ Comp Score TM (NWCS). This identifies the gaps within your companies operations and procedures. Just knowing your benchmarks are high, does not diagnose your problems. The NWCS identifies your problems.
2- Review the Recommendations for Improvement generated when you get your NWCS TM. After you get your NWCS, you will get a list of recommendations. Some are things you can do right away with no financial outlay. So, no excuse NOT to do them! I’ve heard all the “reasons” you “can’t do” many things: you are unionized, decentralized, have high fraud rate, etc. But there ARE many things you can do if you take a “CAN DO” approach. The Recommendations for Improvement will tell you many things you can do now.
3- Implement a post-loss workers’ compensation cost control program. Do this one step at a time, by prioritizing the Recommendations for Improvement you get with your NWCS, and begin implementing those recommendations. Do it now, there’s no need to wait. Fill in the Implementation Timetable with 3-4 items from the Recommendations, assign a person to carry out each task, and mark a date for implementation. Don’t look now, but you’ve begun!
You do not need to have the perfect system in place before you being to implement a program — it’s better to begin somewhere, with 1-2 steps than to take no action. If you have any type of deductible, virtually every claim dollar within your deductible. If you are in a mod-rated program, two companies that do exp rating reviews are www.cutcompcosts.com or www.zapcomp.com to have your experience mod reviewed. I am not endorsing these resources, just getting you started in finding resources. Make sure to tell them you read about them here on www.ReduceYourWorkersComp.com.
For more cost-saving tips go to WC Cost Reduction Tips.
Show the REAL cost of workers’ comp with the Real Cost Calculator.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
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