In this article you will learn that every business has the ability to control its workers' compensation premiums. It starts with you and your commitment to properly prevent injuries in your workplace. Safety is a culture where you need to lead by example to get buy in from your employees. Fewer work-related injuries mean fewer complications due to lost time, costs associated with workers' compensation claims, and a lower modifier (MOD), which is the number that represents your business loss and claim history when your premiums are calculated.
Workers' compensation premiums are calculated based on this formula:
Rate X every $100 of payroll X Experience modifier X Scheduled Modifier = Premium
You can start to build a culture of safety by checking to make sure that all safety hazards have been eliminated from your workplace. This safety check, under your leadership, should be reviewed regularly. Leading by example shows your employees that you are serious about their safety.
If you don't know where to start, here is a tip: begin with a safety check list. Ask your agent for help. Many customers don't know that their insurance company provides them with such assistance at no charge. They have industry specific monthly, quarterly, and annual check sheets designed for you to follow.
In addition, one of the most simple and overlooked safety measures is to make sure your employees are properly trained on how to use all equipment. Beyond on-board training of employees you should integrate different pieces of existing equipment into your newly started safety meetings. Even if you believe its common knowledge regarding how to safely operate a piece of equipment you should review it with your workers. Assumptions lead to accidents.
In the event an accident does occur, did you know, the longer an employee is absent with an injury, the higher the cost is for the employer? Research has shown that work itself can play an important role in the recovery process. As the safety leader of your organization, another tip is to create a temporary position that fits that employee's current capability. Can't find the interim job to accommodate the employee? A great option is a charity work assignment. You can pay them to help out at a charity of your choice. It's great for all involved. It gets your business name out in the community and it is statically proven to help the injured worker's self-esteem and recovery time.
Want to learn more? At Ansay & Associates we pride ourselves on helping our customers manage their workers' compensation program. Our company has designed a suite of specialized management tools that are unique to it: One is the MOD analysis program that identifies opportunities to integrate and build a culture of safety into our customer's workers' compensation program as well as drive their modifier down. Another tool of interest is the proven MOD reduction plan called Med-Pro, a nurse triage program to help an organizations injured employees.
How can we work together? We begin the process by proactively reviewing all of the safety programs that are available to you the customer through your present carrier. Then we ask these questions: What is your agency doing for you? Do you know what tools are available to you?
We here at Ansay & Associates will be happy to show you our process.