Spiraling Out of Control 5 ways to Reduce Workers’ Compensation what are some ways to make money Claims EHS Today

One of the biggest expenses affecting small businesses is workers’ compensation insurance, which covers expenses associated with injuries to employees while on what are some ways to make money the job. In fact, 33 percent of small business owners identified workers’ compensation as a critical problem in 2004, according to the national federation of independent businesses (NFIB).

In 2004, rates ranged from 5 percent to 40 percent of payroll, depending on the state where coverage is provided. Average premiums continue to rise in most states just behind what are some ways to make money labor costs and health insurance while coverage availability decreases. In most cases, the rate is charged against all payroll, including double time. This is a fast-growing expense across industries, and one that cannot be ignored.

When an employee experiences an injury on the job, complete an accident report with as much detail as possible. Take photographs of the scene and talk to any potential what are some ways to make money witnesses about what happened. The first report of injury should be sent within 24 what are some ways to make money hours to the insurance company to ensure prompt handling and what are some ways to make money to help fight fraudulent claims.

A drug test should be required of the employee. While a positive drug test will not allow you to what are some ways to make money deny a claim in most states, it will certainly help. (you also might consider conducting random drug testing for all what are some ways to make money employees. Be upfront about telling all potential employees that submitting to what are some ways to make money random drug tests is a requirement for employment, which should decrease any potentially drug-related claims.)

Second, check your experience modification factors (or "experience mods"). Every business that spends more than $5,000 on workers’ compensation has an experience mod. Each company starts at 1.00 and it goes up or down depending on its what are some ways to make money claim experience. The lower your claims, the lower your experience mod. Your rate is typically multiplied by your experience mod to what are some ways to make money arrive at the final rate. For example, if your rate is $10 and your experience mod is .8; your rate becomes $8. Make sure your experience mod is correct. Are the claims listed actually yours? The "mistake" ratio in the insurance industry is higher than 27 percent, so review everything carefully. Errors that go unnoticed can cost you big money.

With all this to worry about, it is not difficult to understand that there is a what are some ways to make money growing trend in small businesses to outsource these functions to what are some ways to make money a professional employer organization (PEO). Advantages for the business owner include reduced premiums, safety and loss control expertise, nationwide coverage and professional payroll processing and tax filing.

Since the majority of small businesses do not have a what are some ways to make money full-time human resources professional in staff, they often need advice on issues ranging from loss control what are some ways to make money and safety, to hiring and firing, employment practices, performance appraisals and wage issues. A good PEO will be able to provide you coverage what are some ways to make money and assistance in any state where you do business. This way, you can concentrate on what you do best: running your business.

"There are two aspects to reducing workers’ compensation costs," says ver meulen. "One is loss control. Once an injury occurs, controlling the costs associated with that injury. The other is loss prevention. That’s done through incident and near-miss investigation, taking a look at the root cause of incidents and what are some ways to make money implementing steps to prevent them from reoccurring."

Ver meulen is vice president, sales and marketing of per datum inc. Of hilliard, ohio. Per datum offers a software program prognos for managing safety, workers’ compensation and disability programs. The software’s modular design enables prognos to accommodate incident reporting and what are some ways to make money OSHA compliance reporting at a single facility or handle enterprise-level safety and workers’ compensation program management. The features offered by the software employee/supervisor incident reporting, OSHA compliance reporting, incident investigation tracking, transitional work management, claim administration and medical case management could serve as an what are some ways to make money outline for employers who are trying to manage and reduce what are some ways to make money workers’ compensation costs.

Ver meulen notes that it is important to manage core what are some ways to make money costs, such as wage replacement and medical bills, closely. Import information about claims management provided by your insurance carrier what are some ways to make money or workers’ compensation program administrator back into your system, he says. It will help you track and trend near-misses, OSHA recordables and direct and indirect workers’ compensation costs. If your program is self-administered, then ensure that medical bills reflect proper procedure codes and what are some ways to make money diagnostic codes.

Employers need to keep in mind the interaction between workers’ compensation and short- and long-term disability claims under the families and medical leave act what are some ways to make money (FMLA). "Workers’ compensation counts against FMLA," says ver meulen. "If an employee combines short-term disability under FMLA with workers’ compensation, then he’s double-dipping."

He noted that companies that don’t consolidate incident reporting in a central location are making what are some ways to make money a mistake. "We’ve found that at some companies, information is available in a lot of different places. No one sees the complete picture. It is fairly easy and cost-effective to have systems in place that track incidents and what are some ways to make money their causes, but there often are political issues involved within the company. Managers don’t want to give up control over ‘their’ information. If a system is put in place that requires all what are some ways to make money data to be entered into one database, then you can get a much better overall view of what are some ways to make money workers’ compensation losses and what you need to do to prevent what are some ways to make money losses."

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