Home: ArticlesAboutWorkersCompensation.com
<< Back    |    Home: Home

ArticlesAboutWorkersCompensation.com :

How an Employer Should Handle Workers Compensation Claims
By Randy Sieberg, CIC, ARM, CRM

If your business is experience rated, each and every dollar paid on a claim will ultimately effect your workers compensation insurance cost.

Some believe that a workers compensation policy is simply a finance mechanism for paying claims and that employers would be better off without the workers compensation system in place. Well, it's not that simple. The workers compensation system is made up of much more than the simple process of paying claims. Product delivery to an injured employee is complicated and governed by statute in all regions. Not many employers have the expertise or funds to provide the claims management services employees may need when injury occurs.

Poor claims management by an employer will ultimately result in increased cost of workers compensation insurance. The most direct link to claims and increased cost is through a mechanism known as the experience modification factor. The experience mod in simple terms is a system that compares your individual workers compensation experience, comprised of payroll and claim dollars, to those of similar businesses. Those with better claims experience have lower factors thus reducing their total workers compensation cost. Conversely, those with poor experience have higher factors thus increasing their total work comp cost.

So as an employer you should;

  • Report claims to your insurance company as soon as possible;
  • Pay close attention to all open claims;
  • Work towards the goal of closing claims as soon as possible;
  • Work closely with your insurance company adjuster;
  • Do all that you as an employer can to get your injured employee back to work as soon as possible;

It's a fact that workers compensation claims occur. When an employee is injured they need your workers compensation program to be working at it's best. Providing necessary medical and rehabilitation services to get them back to work as soon as possible. But when a workers compensation claim goes out of control you can be assured it will effect the total cost you pay for workers compensation. There are many steps an employer can take to help keep workers compensation claims under control and possibly the single most important step is to stay involved in the claims process.

This article is brought to you by WorkCompConsultants.com, an independent workers compensation consulting firm dedicated to helping employers prevent and resolve work comp issues.