Controlling Your Worker’s Compensation Costs Through Accident Prevention
We’ve previously written about the importance of understanding your experience modification factor (Mod) and how it affects your workers’ compensation premium. As discussed, your Mod factor has a direct impact on your workers’ compensation premium. With this in mind, what is the best way to control your insurance costs? It’s a simple answer… accident prevention.
Overall, in New York your Mod is calculated based on data reported to the New York rating bureau, (known as the New York Compensation Insurance Rating Board (NYCIRB)), by current and past insurers. Incorrect Mod factors are caused by incorrect or incomplete data. We recommend that you review loss and payroll data to make sure that the calculation is accurate and complete. Losses remain in the experience rating formula for three years. In general, the Mod factor is influenced more by small, frequent losses than by large, infrequent ones.
Here is some quick advice:
Be proactive. Establishing safety programs, return to work programs and proper prevention procedures can help reduce overall loss frequency. Also, an effective self-inspection and accident investigation program is critical to managing claim frequency.
Be efficient. A claims management program can help your business manage outstanding reserves and focus on efficiently resolving open claims. Claims should be reported to your carrier immediately.
Be cautious. If possible, injured employees should be provided with light duty upon their release from treatment so you can reduce claim costs and ensure the health of your employees.
Set goals and responsibilities. Supervisory roles should have set safety performance goals. Success in achieving safety goals should be used as one measure during the supervisor’s performance appraisals.
Train and communicate. Employees should be trained on their responsibilities for safety, and should know to enforce violations. You should communicate with employees with regular frequency on a formal and informal basis regarding the importance of safety.
Rose & Kiernan, Inc. has the loss control experience to help you promote safety at your business and control your workers’ compensation premium. Contact us here or by calling 800-242-2433.