The insurance market is going to become more costly according to recent articles by Business Insurance and Advisen. Start the New Year right, and do 4 simple things to reduce your workers’ comp costs:
1- Count your OOW (out of work) Employees. Know how many employees that are out of work TODAY, and make your goal to reduce that number by 30% within 6 months. At any given time, you should know the “OOW count” and be ready to tell your CEO, CFO and other management that figure.
2- Know the Cost of the OOW Count. If you have 25 employees out of work, and the total incurred cost of those claims are $67,000, your company has to sell $1,340,000 if your profit margin is 5% to replace the cost of those claims on the bottom line. Every member of management will understand THAT figure. You can calculate your own Cost of Workers’ Comp at Workers Comp Kit Calculator.
3- Use a Work Ability Form when the employee takes the form to the doctor ON THE FIRST VISIT. Make sure your form has check boxes to indicate physical restrictions at work and at home.
4- Have every employee sign an Employee Acknowledgment Form stating that they have been informed of their responsibilities in your workers’ comp program. This form should be included in your new hire packets, as well as, distributed to all existing employees.
There are many ways to reduce workers comp costs. You can do it yourself or get hands on help from Amaxx. If your company is just beginning, the best way to begin is to find out your National Workers Compensation Score (NWCS)â„¢. Find out more.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
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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