Workers’ Compensation: The Importance of Processes
“Trust the process,” goes the saying. That’s especially true when it comes to the topic of workers’ compensation (WC). Often perceived as costly and confusing, WC can make employers feel as if they’re not in control. There are steps companies can take to positively influence WC outcomes, though. Let’s take a look:
More Safety Equals Fewer Claims
It’s really that simple … a safer environment reduces claims, and that reduces costs. Too many companies perceive the safety process as something done on a jobsite, but safety must be ingrained in your company culture. An ongoing commitment to a safer work environment starts at the top, with the attention and resources needed for success, and permeates the entire organization.
The foundation for a culture of safety is a set of comprehensive safety policies and continuous monitoring to make sure they’re being followed. This will not only reduce injuries but help to keep the company in compliance with OSHA standards, reducing costly fines.
Even the most safety-focused organizations will still experience accidents, and it’s important to understand that your response can have a big influence on the outcome. Again, it’s vital to have processes in place before an incident occurs.
The basics here include prompt claim reporting and designating someone to coordinate injury management. This person will supervise open claims and work with both medical practitioners and employees to streamline the recovery process as much as possible.
The cost of a claim is directly proportional to the amount of time an injured employee is out of work. A return-to-work program that allows workers to return in a limited capacity is a very useful tool for reducing the length and severity of a claim.
The Mod Factor
Your WC premiums are calculated using an experience modification factor (or simply ‘mod’). Managing your mod – and keeping your premiums down – begins with controlling your exposures and promoting safety, as noted above.
It’s important to note also that mod management, like your safety program, is an ongoing process and not an event. Keep in regular contact with your insurer to make sure they’re using the most current and accurate data to calculate that all-important mod.
Questions about workers’ compensation coverage? Contact Consolidated Insurance.