1. Participate in your annual worker'compensation audit
This is the time when your insurance company verifies the invoice and risk classification each year. You must verify all data to ensure the correct payroll in each risk category during the relevant period and to question any risk classifications that you believe are wrong.
Errors are common in both areas. Just because they say this is not the case. They can assign hundreds of categories. You can and should challenge any suspicious classification. You must know for yourself which classification options and which classification options apply to each of your employees.
How else can you determine if the assigned classification is appropriate and do you have other options? If there are doubts, challenge. Many are wrong, and mistakes are almost always beneficial to insurance companies.
The error you paid in the form of a higher rate.
I work with a company that saves thousands of dollars in premiums each year, allowing a group of workers to reclassify [correctly] the risk of less than $0.40 per hundred dollars compared to the previous $5.90 per dollar. I must add that an incorrect classification has existed for more than 20 years. Think about the premium fees that the company incorrectly charged in 20 years.
The rate for each employee varies widely. Depending on your size, payroll and industry, incorrect rate classifications can easily cost hundreds, thousands or even tens of thousands of dollars or more per year. If you have any questions about the correct rate classification, you can safely inject the insurance company to classify your employees according to their highest rate. A higher risk classification will result in higher premiums.
Their goals are exactly the opposite of yours. Never assume!
2. If appropriate, request a split rate classification
In today's employment world, many employees work in a variety of jobs. This can lead to many possible rate classifications. You want the lowest rate classification to be possible. Your insurance company will try to assign the highest rate classification.
But what if your employees spend 40% of their time on a higher classification function and 60% of their time on a lower risk rate classification? Why do you want to pay 100% of his time based on the cost rate function? In this case, one interest rate may be 3.59 per 100 dollars, while another possible interest rate may be $2.25 per 100 dollars. This is a significant difference.
By getting the split rate, you should be able to reduce the number of workers. Comp divides the work into 10% to 50% of the employee's cost reduction strategy based on the difference and the proportion of time spent on each job function. If your current carrier does not share the rate and your state allows it, look for a willing person!
3. Combat false workers ' compensation requirements
Although it seems that employers have fewer and fewer rights each year, you still have some rights. One of them is to crack down on a suspicious claim. participate. If you have any questions about the validity of your claim or if you suspect it is work-related, please dispute this.
It is estimated that false statements of injury at work or at work account for 20% to 25% of all claims. This is the case for ordinary workers only in the past decade. The compensation rate has increased by 150%. This means your costs will increase dramatically. You must take some action on this.
The Workers' Compensation System is designed to help workers not allow them to use the system during legal injury. Each claim will affect your rate. With a single claim, your rate will triple. False claims are happening every day. Let me give an example that I know:
A guy is playing softball on Sunday. He slipped into the home plate and tore his knees. He is an agile person. He did not go to the hospital. Instead, he stayed up all night and went to the warehouse the next morning before other people. When other employees arrived, they found him lying on the tray with pain in his knees. How do you know that this poor guy "falls off the tray" and sprained his knee. He is unemployed for more than 2 years.
4. Apply for insurance certificate
Make sure that all external contractors or workers of any type are not on your payroll, but are working for you or your promise and have a certificate of insurance. If injuries occur under these conditions and they do not have their own insurance, they may be able to file a document against you. Don't just admit that they have insurance. A copy of the current insurance certificate is required for your file. No certificate, no work. very simple.
5. Promote clarity
Make sure your insurance company and the doctors involved in the case understand the employee's work obligations. You don't want to determine if an employee can return to work based entirely on the version of the employee's work that he or she needs. I have seen this situation more than once. Especially in one case, the employee stated that most of his work was a heavy job, and in fact his heaviest job was his salary. If the return job is determined based on the employee's description of the work that the employee may never return to work. You don't think this is his goal, are you?
6. Written statements are key
Time has a way to distort what happened, just like a few calls from injured employees. In the event of any incident, please ensure that you receive a written statement from all witnesses when the incident is still fresh. If you have any chance to crack down on a false or suspicious claim, you must have this information.
More than once, this allows us to pre-empt fraudulent claims. Don't wait for your insurance company to investigate. This can take weeks or months and may never complete normally. Key witnesses may forget, quit, be fired, or change things that happen.
Orignal From: 6 ways to significantly reduce worker compensation costs
No comments:
Post a Comment