The key to permanent cost control is the development of an affordable in-house claim management program that gives you control over your claims.
Here's how to increase cash flow by reducing Workers Compensation claim costs:
Step 1: An analysis of how your company handles claims internally is performed, even if claims are managed by an insurance company or third party administrator;
Step 2: Your individualized case management policy is designed and implemented with your staff trained in the day-to-day operation of the program;
Step 3: Watch your cash flow increase as your costs drop as much as 35%.
Evaluate quality of claims services provided by insurance companies or third party administrators;
Examine retro loss adjustments to determine if losses should be audited;
File Reviews and Audits;
Evaluate Premium quotes to ensure they are quantified to the same risk and rates;
Monitor NCCI e-mod reports;
Claims loss summary analysis;
Slips, trips, and falls are no laughing matter. There are 8.9 million emergency room visits and 25,000 deaths each year due to slip, trip, and fall (STF) accidents, according to the National Safety Council.
To highlight the frequency and help businesses avoid these accidents, Philadelphia Insurance Companies is announcing Safe Steps Week. PHLY is raising awareness and providing safety measures to help businesses reduce the frequency and severity of slips, trips, and falls. Visit www.phly.com/safesteps to:
Download a prevention guide with warning signs to look out for and simple, cost effective solutions that all businesses can utilize.
Contact our PHLY Risk Management Services team with a question or to set up an onsite consultation.
Download our PHLY RMS self-assessment checklist and return it to receive a free evaluation.
Connect with PHLY on Facebook, Twitter, and LinkedIn where we’ll share other helpful tips and use the hashtag #Safesteps.
IMPORTANT NOTICE - The information and suggestions presented by Philadelphia Indemnity Insurance Company in this e-brochure is for your consideration in your loss prevention efforts. They are not intended to be complete or definitive in identifying all hazards associated with your business, preventing workplace accidents, or complying with any safety related, or other, laws or regulations. You are encouraged to alter them to fit the specific hazards of your business and to have your legal counsel review all of your plans and company policies.
============================= Risk Tip Don't Overlook Workers Comp Premium Credit
Most contractors know that workers compensation insurance premiums are based on payroll. However,
many do not know that 20 states allow a "Contractors Premium Credit Adjustment" if the hourly
wage level exceeds the state hourly average wage. (See list of states below.) Contractors paying
union scale will almost always qualify for the credit. The size of the credit varies, but in most
states, eligible contractors can earn a credit of anywhere from 5 percent to 40 percent, and
discounts of 20 percent or more are not uncommon. Most states use a formula based on the state
average weekly wage to determine the size of the credit; however, six states determine the credit
from a table. This is a credit only, never a debit.
States allowing a Contractors Premium Credit Adjustment are Alaska, Connecticut, Delaware,
Florida, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New
Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Virginia, and Wisconsin. To
qualify, most states require at least 50 percent of the policy premium to be in construction
codes. Connecticut, Illinois, and Oregon require the contractor to have an experience modifier
below 1.0 in order to be eligible for the credit. The credit must be verified during the premium
audit, so contractors must be diligent to maintain relevant documentation to ensure the credit
will be upheld.
The Contractors Premium Credit Adjustment can be obtained by completing a simple application form
supplied by the National Council on Compensation Insurance (NCCI) or the appropriate independent
state bureau. Because the credit applies on a per-state basis, eligible contractors operating in
one of these states can take advantage of the credit, even if they also have operations in other
states that do not allow the credit. Contractors should contact their agent or broker to
determine if they are eligible for, or receiving, this credit.
Submitted by Scott B. Miller, Director of Premium Audit, Acadia Insurance
Recognize Risks of Opting Out of Workers Comp Coverage
In Oklahoma company owners and executive officers can opt out of (or not opt in to) workers compensation coverage. But, are they aware that if they do so, their health insurance may not pick up their work-related medical claims? If they have health insurance through their own company's group insurance policy, then they can usually arrange to be covered for work-related injuries under that policy. It then becomes "24-hour" coverage for them. But many employed by small businesses are insured under their spouse's (or parents') health insurance, and those policies almost always have a work-related injury exclusion.
So, for instance, the owner of a small business exempts herself from workers compensation insurance and is covered under her husband's health insurance policy. She is seriously injured in a work-related, at-fault auto accident. Once she has exhausted her auto's medical payments or no-fault coverage, she is probably uninsured for the rest of her medical expenses. Agents should be informing their customers who exempt themselves from workers compensation coverage that they may be setting themselves up for medical bill bankruptcy and limited medical treatment options.
Even if they are covered under their own health insurance policy on a 24-hour basis, their loss of income claim will still not be covered. An individual disability income policy may be the answer. Or, perhaps they should decide to cover themselves under workers compensation insurance after all.
Avoid Uninsured Maritime Risks
Maritime risks include liabilities that arise in connection with federal workers compensation laws such as the Longshore and Harbor Workers' Compensation Act (LHWCA), the Outer Continental Shelf Lands Act (OCSLA), and the Jones Act. Originally intended to cover injuries to seamen and those who worked over navigable waters, the scope of these statutes has been expanded by the courts to reach almost any employee who works or travels near navigable waters, including construction workers. Injuries covered by these acts stipulate special benefits that exceed those payable under most state workers compensation statutes.
Because of the expanded scope of the laws, many contractors stumble into maritime exposures unknowingly. In some cases, the exposure is so obscure the contractor is not aware that it exists, and the contract documents rarely stipulate that coverage for these risks is required. As infrastructure projects gear up, more contractors will encounter maritime risks in their construction operations. To avoid a potentially significant uninsured claim, contractors should consider adding appropriate endorsements to their workers compensation policies on an "if any" basis. This type of endorsement will preserve coverage when an unexpected maritime claim surfaces and allow the contractor to be charged an appropriate premium retroactively.
Information is not an offer to sell insurance. Insurance coverage cannot be bound or changed via submission of this online form/application, email, voice mail or facsimile. No binder, insurance change, addition, and/or deletion to any insurance policy coverage goes into effect unless and until confirmed directly with a licensed agent. Note any proposal of insurance we may present to you will be based upon the values developed and exposures to loss disclosed to us on this online form/application and/or in communications with us. All coverage is subject to the terms, conditions and exclusions of the actual policy issued. Not all policies or coverage is available in every state.
Please contact our office at 918-346-6973 or 918-660-0090 to discuss specific coverage details and your insurance needs. In order to protect your privacy, p/ease do not send us your confidential personal information by unprotected email. Instead, discuss that personal information with us by phone or send by fax.
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