Exposing the Cost of Workplace Injuries

Welcome to the first installment of The Seltzer Group’s Workplace Injury Best Practices Series! This is part one of three for the month of February. Check back next week for part 2!

Exposing the Cost of Workplace Injuries

 If your business was responsible for paying 100% of your Work Comp claims, would you look at workplace injuries differently? 

Most employers have been led to believe that by purchasing a Workers Compensation insurance policy they are transferring the cost of claims to their insurance company. That is not the case.  Yes, insurance companies initially pay claims but how they impact your future premiums may alarm you!

The Work Comp rating system has been designed so that when a business has a claim they actually end up paying back every claim dollar in the form of direct premium surcharges over the course of three years1.  Many times the amount paid back by the employer exceeds what the insurance company originally paid by as much as 3 times.  In other words, employers are financing their Work Comp claims at ridiculously high “interest rates”.

The good news is employers are recognizing that they have more control over what they pay for Workers Compensation than any other insurance policy… if they invest the time to learn how.

The Seltzer Group’s team of Work Comp specialists is helping employers accomplish just that.  To start we review your company’s past claim and premium data to generate custom reports to clearly define the financial impact of workplace injuries at your company.  These reports are helpful to business leaders because they provide valuable information, such as:

  • Claim Surcharge (Interest) Rate – a detailed summary calculating how each claim increased or will increase your premium over a three year period.
  • Controllable Premium –the portion of your premium that your company is currently paying as a result of your prior claim history.
  • Minimum Premium –your achievable minimal cost based upon your company size and classification

This comprehensive review not only provides valuable financial data it, but it also exposes hidden rating and carrier mistakes, procedural mishaps, and other costly, yet avoidable overcharges.  With this information our team of area experts (claims, safety, HR, insurance) will meet with your management team to develop an action plan that

  • Minimizes the potential threat of future claims
  • Implements proven claim management procedures to control claims that do occur
  • Eliminates costly overcharges caused by hidden, yet frequently undetected, mistakes
  • Identifies and obtains premium refunds for past claims on behalf of your company and
  • Improves your risk profile and insurability, which reduces your overall insurance costs and dependency

1 In Pennsylvania, for purposes of premium surcharge calculations, claims are capped at $42,500.  If a claim exceeds this limit the premium surcharge typically will not exceed $127,500 (42,500 x 3).

The Seltzer Group, located in Eastern Pennsylvania, specializes in developing safety, workers compensation, human resources, claims, and risk financing programs. They are a proud member of the Keystone Insurers Group and are nationally recognized for their expertise in workers compensation solutions. The Seltzer Group serves businesses and individuals locally, regionally, and on the national level.

For more information about your free Workers Compensation Financial Report please contact us at info@seltzergrp.com or 1-888-366-1000 Ext. 126.

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Exposing the Cost of Workplace Injuries was last modified: August 26th, 2014 by Sarah McGorry