Stephanie SpencerPost written by Stephanie Spencer, Claim Manager at Schifman Remley & Assoc. | Triplet Mom | UGA Volleyball Fan | Runner

Workers’ Compensation Insurance began in 1915 and is a regulated, mandatory benefit to protect individuals injured on the job. Policies are renewed on an annual basis.

Workers’ compensation insurance is a form of strict-liability, or no-fault, compensation. This means it is irrelevant who caused an accident or injury–the existence of a work-related injury triggers compensation under the workers’ comp insurance policy.

Under workers’ comp, a worker is entitled to compensation for an injury regardless of whether the employer or some third party was at fault, or if the injury was caused by the worker’s own negligence.

The handling of a Workers’ Compensation claim may be as easy as handling a few medical bills or it can become extremely complicated. Either way, the cost of each claim directly affects your insurance premiums.

The real cost of accidents can be measured and controlled through the right Workers’ Compensation insurance policy and an effective risk management program. For every $1 a company pays in insurance premium, it will spend up to $10 in uninsured miscellaneous costs.

So, what are examples of Insured Costs?

Workers Comp Insured Costs

• Medical Bills
• Temporary Disability (Weekly Checks to the injured employee)
• Settlement for any permanent disability or fatality
Uninsured Miscellaneous Costs
• Investigation Time
• Cost to hire and train replacement workers
• Overtime to other employees
• Supervisors time to train and manage
• Human Resources Time
• Downtime caused by the interruption of an injury
• Potential negative public image
• Cost of any Legal Fees
• Other Employees Moral

Our clients often ask us what they can do to help control the costs of a Workers’ Compensation Claim. Here is a list of important things to keep in mind:

• Establish a Safety Policy
• Adopt a Return to Work Program
• Streamline Your Reporting Procedures
• Utilize Occupational Medicine Clinics
• Understand the concept of subrogation (In some cases, your insurer may be able to sue on behalf of the worker for injury caused by a third party and reduce the amount of damages that are assessed to your work comp claim history.)
• Identify your top loss sources that are driving your claims
• Mitigate your legal expenses by adopting these best practices and working with a competent risk manager.

Schifman Remley & Associates can help you with programs to control your costs and thus control your premium. We will partner with you to assess your risk and provide you with an aggressive program to reduce your claim costs. To learn more, give us a call today at (913) 831-1777.