Many times when a client engages us to become their Outsourced Risk Manager, in the interview stage we often discover that their workman’s compensation costs are high relative to the employee population and work functions. Typically we discover that the experience modification factor is high (which is commonly referred to as a “debit mod”, over 1.0 and beyond) and in many cases the client thinks their experience modification is a consequence they can’t influence. What we find when we investigate the root cause is that their program has been neglected and they don’t have proper procedures in place to mitigate claims. This means that when claims occur they are reported, sometimes improperly, and then left to the insurance company to handle with no follow up whatsoever.
You CAN effect and control your experience modification by following a few strategies.
Here are 5 things you can do to help reduce your workers compensation experience modification:
- Report all claims to carrier immediately. Use a phone call to alert carrier to any serious, potentially serious, or suspect claims.
- Investigate accidents immediately and thoroughly. Take corrective action to eliminate hazards.
- Take an aggressive approach to providing light duty to all injured employees upon their release from treatment. Supervise light duty employees to assure their conformance with restrictions.
- In serious cases that involve lost time, communicate with the claims adjuster so that they recognize your interest in returning the injured employee back to gainful employment.
- Set safety performance goals for persons with supervisory responsibility. Success in achieving safety goals should be used as one measure during performance appraisals.
Review and analyze the root cause of the elevated experience modification, create a plan to address the issues head on and then work the plan. Be aggressive and be in control.