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Your experience modification factor, or e-mod, is an important component used in calculating your workers’ compensation premium. If you can control your mod, you can lower your workers' compensation costs. We’ve gathered the following tips to help improve your bottom line.
- Investigate accidents immediately and thoroughly; take corrective action to eliminate hazards, and be aware of fraud.
- Report all claims to your carrier immediately. Alert the carrier to any serious, potentially serious or suspect claims. Frequently monitor the status of the claim, and communicate with the adjuster to resolve them as quickly as possible. (Be sure to let us know in the event of serious or suspect claims.)
- Take an aggressive approach to providing light duty to all injured employees upon their release from treatment. Supervise light-duty employees to ensure their conformance with restrictions.
- In serious cases that involve lost time, communicate with the claims adjuster to demonstrate your interest in returning the injured employee back to gainful employment.
- Set safety performance goals for those with supervisory responsibility. Success in achieving safety goals should be used as one measure during performance appraisals.
- Develop a written safety program, and train employees in their responsibilities for safety. Incorporate a disciplinary policy into the program that holds employees accountable for breaking rules or rewards them for correctly following safety procedures.
- Frequently communicate with employees, both formally and informally, regarding the importance of safety in helping keep them safe and to keep workers' compensation costs in line.
- Make safety a priority. Senior management must be visible in the safety effort and must support improvement.
- Evaluate accident history and near-misses at least monthly. Look for trends in experience, and take corrective action on the worst problems first.
The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the nation. For more information about workers’ compensation insurance coverage, contact us online or call 480-730-4920.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.