Controlling Workers Compensation Costs

Workers Compensation costs are routinely the single largest premium an employer will pay in their commercial insurance program. The medical and indemnity costs of an average Work Comp claim continue to rise, contributing to the increased cost of work comp insurance. An employer's adverse loss experience on the Work Comp line can exacerbate the costs of Work Comp. Not only will an adverse loss experience routinely drive an experience modification factor above 1.00, but it can also drive additional “soft costs” into the work comp equation. This can result in an employer paying well above $1 for every $1 an insurance company pays in Work Comp claims. The answer to controlling the cost of Workers Compensation insurance is twofold. First, an in depth analysis of the Workers Compensation experience modification calculation and the Work Comp audits will confirm that they have been calculated  correctly. Second, a commitment to safety on the part of the employer combined with specifically dedicated Work Comp claims handlers, will bring the cost of Work Comp insurance under control, and provide a more productive workforce. To further discuss the specific methods of controlling the cost of Work Comp insurance, please contact our office.