Risk Manager Best Practices That Drive Workers’ Comp Results

In the complex world of workers’ compensation, risk managers play a vital role in aligning strategic oversight with day-to-day claims operations. Far from being a behind-the-scenes figure, a successful risk manager serves as the linchpin between claims administration, adjusters, and injury management teams. The most effective professionals in this role are not just reacting to injuries—they are actively shaping the way claims are handled and resolved to minimize downtime, reduce costs, and protect the workforce.

Here’s a closer look at best practices every risk manager should be following to create a high-performing, cost-effective workers’ compensation program.

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1. Own Your Claims Administration Structure

The first step is to determine your company’s claims administration model. Are you fully insured, self-insured, or working with a third-party administrator (TPA)? Each model has different implications for oversight, reporting, and control. An effective risk manager evaluates whether current structures support the company’s injury management goals—or if change is needed.

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2. Assess Adjuster Workload and Relationships

The number of claims an adjuster manages directly affects claim outcomes. High caseloads mean delayed responses, rushed investigations, and poor return-to-work coordination. Monitor the adjuster-to-claim ratio to ensure claims receive the attention they need to resolve efficiently. If claim volume is high, consider negotiating for dedicated claims handling staff or hiring an internal claims advocate to provide direction and accountability.

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3. Get in the Trenches with Your Adjusters

Nothing beats firsthand knowledge. Visit your claims administrator’s office to observe operations, ask questions, and understand how your claims are handled. This site visit isn’t just symbolic—it helps establish expectations, build rapport, and improve collaboration. When adjusters see that you’re engaged and knowledgeable, they’re more likely to prioritize your accounts and communicate more effectively.

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4. Insist on Adjuster Training in Injury Management

Many adjusters are skilled in policy and procedure but may lack training in return-to-work strategies or transitional duty. Ensure that the team handling your claims understands not only state regulations, but also your specific injury management philosophy and the importance of minimizing lost workdays. Consider offering training or sharing your internal protocols with them directly.

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5. Attend Hearings with a Purpose

Don’t rely solely on legal representation to speak for your organization during workers’ comp hearings. When the risk manager or injury coordinator is present, you can directly clarify job requirements, communicate your willingness to provide transitional duty, and offer custom duty solutions. Your presence demonstrates commitment and often expedites resolution.

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6. Benchmark—and Prove—Your Program’s ROI

Numbers tell the story. Risk managers should maintain clear benchmarks showing how much is saved through effective injury management. A well-executed program may require upfront investment in staffing, training, or oversight—but these investments pay off in reduced indemnity payments, lower claim durations, and improved mod scores. When leadership sees the ROI, ongoing support becomes easier to secure.

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7. Keep Learning and Connecting

The best risk managers are also industry learners. Attend seminars, participate in peer groups, and stay current on evolving best practices in claims handling and injury recovery. Meeting others in your field provides fresh ideas, peer benchmarking opportunities, and valuable strategies to bring back to your own program.

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Risk management is more than reviewing numbers and approving reports—it’s about proactive leadership, collaborative relationships, and a deep understanding of the full claims lifecycle. When risk managers step into this broader role, they elevate the entire workers’ compensation process, creating safer workplaces and stronger financial results.

Need help refining your strategy? Learn more at WCManual.com or schedule a session with our team at https://workerscomptraining.com/go/wc-strategy-session/schedule/. Let’s build a smarter path forward.

Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

Contact: mstack@reduceyourworkerscomp.com.

Workers’ Comp Roundup Blog: http://blog.reduceyourworkerscomp.com/

Injury Management Results (IMR) Software: https://imrsoftware.com/

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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.