6 Tips to Reduce Your Workers Comp Premium

Posted on March 13, 2019 by Mitchell Sharp

Here are Six Ways To Save on Workers Comp Premium

There are many aspects of a business that determine what a business pays for workers comp premium. Some of the factors, are not controllable. Take for instance the state you operate in or the industry you operate in. Other factors are a direct reflection of the actions of the business. An example of this is the amount of insurance claims a business has in a particular year. Here are six steps a business can take to limit what they pay for workers compensation insurance premium.

Workers Comp Premium may be high for a Small Business Coffee Shop.

Partner With an Independent Insurance Agent

Partnering with an independent insurance agent is the best way to get the most comprehensive coverage at rock bottom rates. This is because an independent agent has access to multiple carriers and they know which carriers are hungry to quote certain coverages or industries. This knowledge can help them quote your policy with the carriers who are actively seeking out your type of business. This saves time and gets your business access to the best workers comp premium rates possible.

Shop around your policy

A good way to shop around your policy is by partnering with an independent insurance agent and let them do the shopping for you. It is not a good idea to switch carriers every year for a slight drop in workers comp premium. It is important to make sure your carrier is competitive with the current marketplace. The only way to find out is to shop around periodically.

Implement a Well-Documented Safety Program

A Well-Documented Safety Program is a great way to reduce the frequency and severity of the insurance claims your business files. It means your employees will get hurt less frequently and be more productive. A safety program does not have to be extensive in order to be effective. It does need to be regular and it needs buy in from the entire organization. The best way to get buy in is for the leadership of the business to prioritize safety and communicate that to staff frequently. Documentation of all meetings is important because it can help your agent negotiate lower rates at renewal and prevent steep increases after a year in which the business experiences several or one large claim.

Include a Return-to-Work Program

A Return-to-Work Program is a great way to show your employees you care about them, you value their contributions, and want them to remain a part of your organization. A return-to-work program should be well thought out and it should be put down in writing. It is important to have some key employees from all levels of your business be a part of the process of developing a return-to-work program. The program must include limited capacity work to get employees back on the job quickly. Employees who get back on the job quickly are more likely to return to full-time permanent work.

Report all Incidents Quickly

If you stay in business long enough, injured employees are going to happen. When incidents do happen, it is important to document everything that happened as quickly as possible. Incident reports are important for internal processing, but the Acord 130 Form is what needs to be filed with your insurance carrier within 24 hours of an incident.

Communicate Throughout the Claim Process

Injured employees have a lot to deal with. Making the process as smooth as possible is the responsibility of the business. Communication is key to getting your injured employee teh benefits they deserve and to get them back on the job quickly. Communicating with your insurance agent, insurance carrier, medical facility, and injured employee is crucial to a smooth process.

 

Posted in General | Leave a comment

How do I plan for an Injured Employee?

Posted on March 4, 2019 by Mitchell Sharp

When an employee is injured, it is extremely important for the leaders of a business to respond as fast as possible. This response includes dealing with the medical issues of the injured employee as well as filing the proper workers’ compensation paperwork. Taking care of both the human and the business side of an incident involving an injured employee will go a long way towards the success of a business. Here are four ways to respond when your business experiences an injured employee.

Read and Follow OSHA’s recommendations

The Occupational Safety and Health Administration (OSHA) sets the standards employers are expected to follow regarding workplace safety. Employers should also know what to do when safety measures fail and an employee is injured at work because the more prepared a business is, the less likely an injury at work will prove costly. With this in mind, there are four main steps that can help business owners plan ahead.

Slips, Trips, and Falls are the most common reason for an injured employee.

Plan ahead and Prepare

The first step in protecting employees is being preparation. Workplace accidents happen, but they happen less frequently and are less severe when the organization is prepared. A quick response to any incident can not only reduce the severity of the injury, but also the cost of the injury. Developing a response plan should be a part of your business leaders monthly and yearly routine. These plans, if executed properly, can minimize common hazards and prevent injuries before they occur.  This process should include:

  • Creating response plans
  • Training employees and supervisors on those response plans
  • Stocking first-aid supplies and making sure they are easily accessible
  • Maintaining emergency contacts in a file where all employees have access
  • Assigning a safety officer or a safety committee to assess potential risks

Respond immediately after injury

When an injury occurs to one of your employees, the first thing anyone involved in your  agency should do is take care of the immediate needs of the injured employee. It is the right thing to do from a human aspect, but also it is the right thing to do from a business stand point. Taking care of the injured employee requires you to first get the injured employee to a safe place, assess the severity of the injury and how best to proceed, help the injured feel better, and gather the necessary information about how the injury occurred (When, Where, How, etc). Having your own internal reporting process is important because after this information is gathered, the manager can use this information to file a first report of injury form with your insurance carrier. Shortly after an injury occurs, the difference between preparedness and panic can be huge. Preparation is the best way to make sure your employees keep a cool head after a worker is injured on the job. This will minimize the severity of the injury and protect the business from additional liability.

Paperwork and Communication are Crucial

When a business experiences an injured employee, the manager on duty should first and foremost take care of the injured employee, but at the same time they need to document as much as possible. This will aide the injured employee in getting timely medical coverage through the workers compensation system. It is also in the best interest of the employer to maintain open communication with both the insurance carrier, the doctor, and the injured employee. This will expedite the claims process and allow the employee to get the benefits they deserve fast. A return to work program should be in place for getting injured employees back on the job, even in a limited capacity, faster and it will make the injured employee more likely to return to full time permanent work.

Prepare for a Lawsuit 

sometimes, when an employee is hurt on the job they decide to sue the employer. Even when an injured employee sues, it is wise to continue to keep the lines of communication open and help the employee get the workers compensation benefits they deserve. It will not look good in the eyes of a judge or a jury if the business shuts off communication in the face of a lawsuit.

The lawsuit does not have to be founded and damages do not have to be awarded for it to amount to an enormous cost for a business. It is wise to share all relevant information, including documentation, with attorneys and claims adjusters throughout the legal process. This is because the longer a litigated claim lasts, the more expensive it tends to become. It is also wise to remember that settling a claim early can prevent a much costlier, drawn-out lawsuit. Your insurance carrier should be able to give you advice throughout this process. Do not let pride get in the way. Most of the time it is best to settle and get back to business no mater what the facts of the lawsuit entail.

Posted in Small Business | Leave a comment

Kansas Workers Compensation Rates are Declining in 2019

Posted on February 13, 2019 by Mitchell Sharp

5th Consecutive year of Decreasing Pure Premium Rates for Kansas Workers Compensation 

Kansas Workers Compensation Insurance Rates in 2019 will be declining by 6.4 percent in the voluntary market and declining by 10.8 percent for assigned risk workers comp rates. This marks the 5th consecutive year business owners in the state of Kansas have enjoyed decreasing rates for workers comp premium. From 2015-2019 the cumulative rates will have dropped almost 45 percent in the voluntary base rate and nearly 50 percent in the assigned risk rate. These decreases will benefit approximately 70,000 Kansas businesses.

Cornfield along the Kansas Plains

Why are Kansas Workers Compensation Rates Declining in 2019?

There are a number of reasons for a decrease in Kansas Workers Compensation rates for 2019. According to Trey Gillespie, vice president of workers compensation with the Property Casualty Insurers Association of America. ‘Most states have experienced an ongoing decline in claims frequency while indemnity, severity and medical severity have been relatively stable’.  According to the National Council on Compensation Insurance (NCCI) 67 percent of workers’ compensation benefit distribution goes to pay medical claims, and 33 percent goes to indemnity claims. In layman’s terms, what all of this means is that businesses report fewer claims to their insurance carriers and the claims that they do report are less severe. The result of this trend is that insurance carriers do not have to pay out as much to service the policies. Because of these favorable trends the carriers are able to pass on some of these savings to the business community throughout the state.

Skyline of Kansas City, Kansas

What can Business Owners do for Ultimate Savings?

Use an Independent Agent

Partnering with an independent agent is always a great way to ensure maximum savings on the most comprehensive coverage available. An independent agent is a good partner because they can shop your policy around to multiple carriers in an attempt to get better coverage at lower rates by forcing the carriers to compete for your coverage. An independent agent will allow you to focus on running your business while your agent shops around your insurance policy.

Classify Properly

In order to maximize savings when it comes to all forms of commercial insurance, it is important to first make sure all employees are classified properly. Many businesses have employees who partake in drastically different areas of the business. Some of those businesses have employees who work in office or clerical work, other employees who are salesman who spend a lot of time out at third party locations, and still other employees who work doing physical labor. All of these employees need to be placed in the proper classification code and their payroll needs to be strictly measured.

Control Your Experience Modification Rating

The experience modification rating of a business is crucial to limiting what you pay for workers compensation.  The first thing an underwriter looks at when determining if to offer your business coverage and what to charge you for that coverage, is the classification code of your business and the experience modification rating of that is business.

Invest in Safety Protocols

Safety is the name of the game in any business. It is what is best for your employees as well as your customers. It is also important when it comes time to purchase commercial insurance. a safer business will have less claims and the claims it does have will be less severe. A small investment in a safety program can pay huge dividends when looking for the lowest Florida Workers Comp Rates.

Add a Return to Work Program to your Safety Policy

A Return to Work Program can significantly impact your experience modification rating in a positive way. When an employee is hurt and not able to work they are much more likely to develop new habits outside of their daily work routine. The longer they stay off the job, the more likely the injured employee is to become long term unemployed. This can have a drastic impact on the experience modification rating of the business. Businesses that are able to get an employee back on the job, even in a limited capacity, are more likely to have those employees return to permanent work.

Posted in General | Leave a comment

The Uniqueness of the Utah Workers Compensation System

Posted on February 5, 2019 by Mitchell Sharp

Workers Compensation System in Utah is Strong 

The Utah Workers Compensation System is very unique. The system of provides for the ‘Exclusive Remedy’ to both businesses and employees within the state and it does it in a much better way than most states. The results of the unique system are Utah Businesses pay some of the lowest rates for workers comp insurance of any state across the country. Workers Compensation Rates in Utah for 2019 have only four states who pay less for workers comp coverage than the state of Utah. Those states are Arkansas, Indiana, North Dakota, and West Virginia. Each of these states except Indiana have a noticeably smaller GDP than Utah. Utah has some things working in its favor that help the market develop in a positive way for the business community in Utah. Here is a detailed description of the uniqueness of Utahs’ Workers Compensation System, what the Utah Workers Compensation System does well, and some additional ways Utah Business Owners can Maximize Savings.

Delicate Arch, Arches National Park, Moab, Utah

How is the Utah Workers Compensation System Unique?

In the state of Utah all employers are required to carry Workers’ Compensation Coverage. If your business is a sole proprietorship or a partnership and you have no employees other than the sole proprietor or partner than you are not required to carry coverage. If these types of businesses interact with general contractors than either the business or the general contractor will need to provide a certificate of insurance that the contractor is covered in order to be in compliance with the state Department of Insurance.

Utah partners with the National Council on Compensation Insurance (NCCI) to establish classification codes and to determine pure premium rates. Most states who partner with NCCI enjoy more competitive rates on workers comp coverage. Utah is one of those states. The state provider within the state of Utah is extremely strong and this competition from the state provider forces all other carriers who offer coverage within the state to compete for business within the state.

Mountain Scene outside of Salt Lake City, Utah

What does the Utah Workers Compensation System do well?

Public Private Partnership

NCCI and WCF partner within the state of Utah to create one of the strongest workers compensation systems in the country. NCCI creates classification codes and recommended pure premium rates. WCF is the state provider within the state and they commonly dominate between 55 and 60 percent of the market.

Utah has a Strong State Fund

The state fund provider in the state of Utah is called the Workers Compensation Fund (WCF). Depending upon the year, WCF controls between 55 and 60 percent of the market for Workers Compensation Utah. The next largest market share by another insurance carrier is typically just over 3 percent of the market. This domination of the marketplace allows WCF to control the cost of workers compensation throughout the state. Any carrier who wants to offer coverage in the state of Utah has to compete for business with WCF. This competition forces all carriers offering coverage within the state to keep their price for premium low in order to compete for business. The result is the business community has some of the lowest rates for work comp coverage of any state in the country.

House Bill 288

In 2018, House Bill 288 (HB288) passed the state legislature. HB288 makes it unlawful for employer to interfere with an employee’s ability to seek workers’ compensation benefits, or to retaliate against employee for seeking benefits. This bill establish fines of up to $5,000 for each individual violation.

Senate Bill 75

Senate Bill 75 (SB75) allows the Division of Industrial Accidents to waive the statutory penalty for failure to purchase workers’ compensation insurance.  SB75 states that the violation must be the employer’s first violation and the period of noncompliance must be less than 180 days. If this is the case, the employer must secure coverage and prove no injury was  reported to the Division during the period of noncompliance. This allows businesses one chance to go without coverage and still get a waiver. This is not the case for business that are serial non-compliers. Also, when a reduction is granted, the penalty will be reduced by the amount equal to the premium the employer would have paid for workers’ compensation insurance” based on the supplied payroll records.

Salt Lake City, Utah

What can businesses do to maximize savings

Safety Programs

Safety Programs are the single biggest move any business can make to positively impact how much the business pays for workers compensation insurance premium. Safety Programs, if well documented and well executed can limit the frequency and severity of accidents that happen to employees while at work. When a business files less claims and the claims that it does file are less severe, the insurance carrier is more likely to dig deep for additional credits and discounts when quoting coverage.

Drug and Alcohol Policies

In addition to a well thought out safety program, it is equally important to have a Drug and Alcohol Policy policy in place to keep all employees healthy and happy. Depending upon the type of work your business does and the training level of your employees, drug testing may need to be done either as a requirement for a job offer or as a regular part of your business plan. Partnering with an experienced risk management professional can help your leadership team develop a policy that is effective for your business.

Working With Inured Employees

If a business stays in business long enough it is going to experience an injured employee. How you work with the employee through the return to work process will go a long way towards the success of your business. Helping them get to the correct facility to get the best care and informing them of the process to get wage replacement benefits is important to keeping the injured worker and other employees happy. Remember, the other employees are watching how you treat an injured employee and they more than likely are wondering how they will be treated if something happens to them. Communicating with everyone involved in the process is important to help your employee get the medical care they deserve and get them back on the job as quickly as possible.

Return to work

A return to work program should be a part of any effective safety program. When executed correctly, a return to work program can help get employees back to work quicker and keep insurance claim from getting out of control. This is important because humans are creatures of habit. The longer an injured employee stays off the job, the longer they have to develop new habits outside of their normal work routine. The longer they stay off the job, the more likely they are to never return to normal permanent work. This is when a workers compensation claim can get out of hand and have lasting impact on the business experience modification rating.

Posted in General | Leave a comment

Top 5 Misclassified Workers Comp Codes

Posted on January 23, 2019 by Mitchell Sharp

 

workers comp codes

NCCI

 

https://www.ncci.com/Articles/Pages/UW_2015ClassInspectionProgramUpdate.aspx

8810—Clerical Office Employees NOC

 

8742—Salespersons or Collectors—Outside

 

9015—Building or Property Management—All Other Employees

 

8601—Architectural or Engineering Firm—Including Salespersons & Drivers

 

5191—Office Machine Installation, Inspection, Adjustment, or Repair

 

 

https://www.ncci.com/Articles/Pages/UW_2017-Class-Inspection-Program-Top-Reclassified-Code.aspx

Code 9015—Current Classification Information

 

According to NCCI’s Classification Inspection Program Update, the top five misclassified codes are:

  1. 8017: Store – Retail NOC
    • Reclassified to:
      • 8010: Store – Hardware
      • 8018: Store – Wholesale – NOC
      • 8008: Store – Clothing, Wearing Apparel, or Dry Goods – Retail
      • 8044: Store – Furniture and Drivers
      • 9083: Restaurant – Fast Food
  2. 8018: Store – Wholesale – NOC
    • Reclassified to:
      • 8010: Store – Hardware
      • 8032: Store – Clothing, Wearing Apparel, or Dry Goods -Wholesale
      • 8017: Store – Retail NOC
      • 8232: Building Material Dealer – New Materials Only – All Other Employees & Yard, Warehouse, Drivers
      • 8046: Store – Automobile Parts and Accessories NOC & Drivers
  3. 8010: Store – Hardware
    • Reclassified to:
      • 8018—Store—Wholesale—NOC
      • 8017—Store—Retail NOC
      • 8058—Building Material Dealer—New Materials Only—Store Employees
      • 8046—Store—Automobile Parts and Accessories NOC & Drivers
      • 8111—Plumbers’ Supplies Dealer & Drivers
  4. 8044: Store – Furniture and Drivers
    • Reclassified to:
      • 8017: Store—Retail NOC
      • 8018: Store—Wholesale—NOC
      • 8010: Store—Hardware
      • 9519: Household and Commercial Appliances—Electrical—Installation, Service, or Repair & Drivers
      • 8235: Sash, Door, or Assembled Millwork Dealer & Drivers
  5. 8046: Store – Automobile Parts and Accessories NOC & Drivers
    • Reclassified to:
      • 8380: Automobile Service or Repair Center and Drivers
      • 8018: Store – Wholesale – NOC
      • 8010: Store – Hardware
      • 8391: Automobile Repair Shop and Parts Department Employees, Drivers
      • 3821: Automobile Recycling and Drivers
Summary of Commonly Misclassified Codes

Store operations are supposed to be classified based on the principal type of merchandise sold (Meaning more than 50% of gross receipts), and whether those sales are retail or wholesale.

Retail codes apply to the sale of merchandise to the general public for personal or household consumption, not for resale, and not business-to-business. Wholesale applies to the sale of merchandise to businesses that will resale to others (Business-to-business), not for direct personal or household consumption.

Specific reasons for the reclassification of these codes include:

  • Code 8017: Store – Retail NOC
    • The biggest reason why this code was reclassified was because the gross receipts exceeded 50% for one type of product sold. For example, a company might have been classified as 8017 because they are a retail store that sells multiple products. However, if more than 50% of the company’s sales were for clothing, the proper classification would be 8008: Clothing, Waring Apparel, or Dry Goods – Retail. Likewise, if furniture sales had exceeded 50% of the company’s gross receipts, then code 8044: Store – Furniture and Drivers would have been applicable.
  • Code 8018: Store – Wholesale NOC
    • Same as with code 8017, the main reason why this code was reclassified was due to the fact that gross receipts exceeded 50% for a specific type of product.
  • Code 8010: Store – Hardware
    • This classification was often reclassified to 8111 (Store – Plumbers’ Supplies Dealer) or 8046 (Auto Parts and Accessories). When more than 50% of gross receipts were for plumbing supplies or auto parts, they would be reclassified accordingly.
  • Code 8046: Store – Automobile Parts and Accessories NOC and Drivers
    • This code was commonly reclassified to 8380 (Automobile Service or Repair Center). The main difference being whether or not the primary operations were servicing cars or working on cars. It is not uncommon for companies in this industry to both service cars and sell auto parts and accessories. The deciding factor is which function is the predominant operation for the company.

 

 

workers comp codes

Categories

  • People & Society
  • Law & Government
  • Arts & Entertainment

SERP features

  • Video
  • Featured snippet

 

 6(6) 1,000 59.98 8.18 www.workerscompe…es.htm 1.51 0.85 0.39 4,580,000
  28 Dec 2018

workers comp class codes

 

 7(7) 880 59.52 7.83 www.workerscompe…es.htm 1.05 0.57 0.28 2,070,000
  28 Dec 2018

ncci codes

 

 15(14) 720 57.09 3.96 www.workerscompe…es.htm 0.09 0.02 0.11 249,000
  28 Dec 2018

ncci class codes

 

 10(9) 590 53.24 1.68 www.workerscompe…es.htm 0.09 0.01 0.09 119,000
  9 hr ago

workers compensation codes

 6(6) 590 59.12 7.50 www.workerscompe…es.htm 0.87 0.46 0.33 24,600,000
  28 Dec 2018
workers compensation class codes
Posted in General | Tagged , , , , , , , | Leave a comment

Delaware Workers Compensation Insurance Rates are on the Decline in 2019

Posted on January 14, 2019 by Mitchell Sharp

2019 is the Second Straight Year of Declining Rates for Delaware Workers Compensation Insurance 

In 2019 Workers Compensation Insurance Rates for the state of Delaware will be declining by 7.3% for the residual market and nearly 10% for the voluntary market. This is the second straight year rates have declined in Delaware and the rates took effect December 1, 2018. According to Trinidad Navarro, the Delaware Insurance Commissioner,  “I am delighted to approve yet another decrease in workers’ compensation rates in Delaware and even happier to see a double-digit average decrease in the voluntary market.  For many Delaware businesses, large and small, this year’s decrease means significant savings and is an incentive for smaller businesses to relocate to Delaware.”

Atlantic Coast Lighthouse in Delaware

Why is there a Decline in Delaware Workers Comp Rates 2019?

Delaware Workers Compensation Insurance Rates 2019 are declining for a number of reasons. One major reason is the Delaware Workplace Safety Program. This program has helped more than 1,500 businesses save over $9.8 million on workers’ comp premiums. Workplace Safety Inspections have largely contributed to these steep declines in premium. Focusing on safety programs is the best way to limit the frequency and severity of insurance claims for businesses of all sizes.

Centreville, Delaware

What Can Business Owners do to Maximize Delaware Workers Compensation Insurance Rates 2019?

Delaware Workers Compensation Insurance Rates 2019 are declining for the second year in a row. There are additional ways a business owner can make sure they are maximizing every way to save on commercial insurance. Here are four tips for saving when purchasing coverage.

Understand the Businesses Experience Modification Rating

The Experience Modification Rating of a business is the main factor businesses can control that impacts what the business pays for workers compensation insurance. Insurance carriers have underwriters who determine whether to offer coverage to a business and what to charge for that coverage. These underwriters use the experience mod as the most impactful measurement when making a decision.  Keeping this rating low is important. Implementing safety programs that include an effective return to work program can decrease the frequency and severity of claims.

Classify Employees Properly

Workers Comp Codes are extremely important when it comes to maximizing savings on commercial insurance. First a business owner must make sure all employees are classified properly.  Most businesses have employees who are in different roles that require different sets of responsibilities. Office employees should be classified differently than travelling sales people and different from blue collar workers. Keeping accurate payroll numbers and making sure each employee is classified properly will go a long way towards cleaning up your relationship with your insurance carrier.

Shop Around Each Policy

An additional way to maximize savings, a business owner should shop around their policy periodically. It is not a good idea to switch carriers each year based upon a modest decline in premium, but it is important to check periodically to make sure your carrier is competitive with the marketplace.  Long term relationships still mean something. Especially  when the business has to file a large claim or the business has a year in which there are several small claims. Long term relationships will help when negotiating to prevent an increase in premium when you are renewing after a bad claims year.

Partner with an Independent Agent

Shopping your policy around to multiple can be a time consuming process. Unless you or someone on your staff is well-versed in the insurance quoting process, it may be much more cost effective to allow an independent agent to shop your insurance package so you don’t have to. An independent agent has the inside knowledge to know which carriers are hungry to quote your industry and the policies that you need. Without this knowledge, it could take an enormous amount of time to get the best deal on the most comprehensive coverage for your business.  Partnering with an independent agent can allow you to get back to running your business while the insurance agent shops out your policy.  This can maximize savings while getting your business more comprehensive coverage.

 

Posted in rates | Leave a comment

Pennsylvania

Posted on January 10, 2019 by Mitchell Sharp

 

https://www.insurancejournal.com/news/east/2018/11/14/507477.htm

https://www.insurancejournal.com/news/east/2018/12/17/512298.htm

Pennsylvania

 

workers compensation insurance pa

We currently rank 9th and there is a volume of 170

 

pa workers compensation rates         We rank 5 with a volume of 110

workers compensation insurance pennsylvania     ranks 11

57.workers compensation insurance pennsylvania 10 0 – – – – – – 15.06 90
Posted in General | Leave a comment

Nevada Workers Compensation Rates are on the Decline in 2019

Posted on January 7, 2019 by Mitchell Sharp

7.3% Decrease on Nevada Workers Compensation Rates 2019

Next year, the business community in the state of Nevada will enjoy paying 7.3 percent less for Nevada Workers Compensation Rates 2019. These decreases will not be across the board. Some industries will see more of a decrease and some industries may not see a decrease at all.  This is because there are many factors that go in to what a business pays for workers compensation coverage, but on average are part of what determines what a business pays for coverage.  Across the board, the business community in the state of Nevada is going to pay 7.3 percent less for workers compensation coverage.

Why are Nevada Workers Compensation Rates Declining in 2019?

There are a number of reasons for the moderate decline in workers compensation rates in Nevada. According to the Nevada Division of Insurance, “claim frequency continues to decline countrywide due to improvements in automation and workplace safety”. The decline in claims frequency has allowed insurance carriers to pay out less for insurance claims. Because of these declines, the insurance carriers are able to pass some of these savings on to their customers. This is great news for the business environment in Nevada.

What can Nevada Businesses do to Maximize Savings?

Pay as You Go Workers Compensation Insurance 

A Pay as You Go Workers Compensation Insurance Policy can help businesses free up cash by lowering what it costs to get coverage in place. The program also increases accuracy in premium payments because the payments are made in real time based upon the previous months payroll. If access to cash is an issue for your business, the Pay as You Go Option may be right for your business.

Safety Programs

Safety Programs are the most effective way to lower what you pay for workers compensation insurance. It is a long term commitment, so the savings will not occur immediately. Creating a safe environment for your customers and staff will decrease the number of insurance claims and lower the amount of missed time your business has due to injured workers. This will make the business more productive and encourage your insurance carrier to give you a better rate on premium because you are less likely to file claims.

Return-to-Work Program

If you stay in business long enough, an injured worker is going to occur. It is not a matter of if, but when. Having an established return to work program will help you limit the amount of time an injured worker is off the job. The quicker they return to the job, the more likely they are to return to full time permanent work. This helps limit the severity of workers compensation insurance claims.

Create an Ergonomically Friendly Workplace  

It is very worthwhile to create work spaces that can fit each employees individual needs. This may cost more on the front end to provide and ergonomically safe environment, but it can save your business immensely in the form of lowered productivity because of injured workers. Businesses that create a safer environment have employees that are less prone to physical stress or injury, and those businesses file less workers compensation insurance claims.

Monitor Employee Morale

Employee morale is a leading factor that leads to increased accidents and insurance claims. Safe employees are healthy employees and healthy employees are happy employees. If you and your key employees keep an eye on employee morale it can be an effective way to increase productivity and limit the frequency and severity of insurance claims.

Posted in rates | Leave a comment

18 Best Ways to Save on Commercial Insurance in 2019

Posted on January 2, 2019 by Mitchell Sharp

Shop Your Policy

While it is not wise to switch carriers every year based on a modest decline in premium, shopping around your policy every few years can help you save on insurance premium. If nothing else, shopping around your policy can confirm or deny that your current insurance carrier is competitive in the current market. Looking at other carriers is one of the first things a business owner should do to ensure they are getting the best price when looking for ways to save in 2019.

Partner with an Independent Agent

The best way to save is to get quotes from numerous carriers all in one place is to partner with an independent agent. An independent agent typically has relationships set up with ten to thirty insurance carriers. With these relationships they are able to shop your policy around to get better coverage at lower rates. They also have the knowledge to know which carriers are hungry to quote your industry or the particular coverage you are looking to secure. This can significantly decrease the time it takes to get your business the best offer.

Understand your Experience Modification Rating

The experience modification rating of a business is one of the single most impactful things a business can control involving what the business pays for all types of insurance. Operating a safe organization and limiting the frequency and severity of claims is the best way to keep this rating low.

Make Sure You Have The Proper Job Classifications

Another one of the best ways to save in 2019 is to take additional time to write complete and accurate job descriptions for each employee. It is equally important to put controls in place so the employees do not step out of their assigned responsibilities. For example, a receptionist who is injured doing heavy lifting could impact your business when a claim is filed. If you use independent contractors, it is important to know if the laws in your particular state consider contractors as employees or not.  This can make a significant difference in the amount you pay for workers compensation insurance premium.

Bundle Your Policies

Bundling all insurance policies together is a great idea for two reason. First and foremost, it makes sure there are no gaps in your coverage. Purchasing coverage from multiple carriers can be an extremely expensive mistake for a business. Each carrier has their own specific limitations to each insurance policy. A gap is where the business owner thinks the claim is covered, but there are exclusions within both policies that might cover the claim, but each has a gap. The other benefit to bundling policies is by getting additional credits and discounts from the underwriter. If a carrier knows they are going to get the business of multiple policies, they are much more likely to dig deep and give you extra credits and debits.

Lower Your Limits

Depending upon the specifics of your business, it may be worthwhile to lower the limits of some of your insurance policies. As your equipment ages, there may not be as much of a need to secure the highest limits. Partnering with an independent agent is important in this regard because they can help you determine where you can safely lower your limits and where you should be careful.

Take on a higher deductible.

Taking on a higher deductible can be one of the most effective ways to save in 2019. Higher deductibles can certainly lower the businesses rate of premium. If you do decide to take on a higher deductible, it is important to monitor your businesses cash flow to make sure you can cover the deductible or pay for the loss with cash on hand.

Pay your Premium in full.

If your business has the cash on hand to pay for premium in full for the entire year, it is usually a way to get a discount from your carrier.  Spreading out the payments through the year may seem more doable, if you have the ability it is almost always less to pay the premium all in one payment.

Safety Programs

Operating a well documented safety program is one of the most effective ways to save in 2019. A Workplace Safety Program can lower the frequency and severity of insurance claims. If this happens it will improve the experience modification rating of the business. This can have long-lasting positive impact on the rate of insurance premium a business pays.

Support A Substance-Free Workplace

As part of any safety program should be a well-documented Drug Policy for all employees. Employees who use drugs and alcohol on the job tend to cause more injuries to themselves and others. Statistics also show they cost the business twice as much for workers compensation claims.   Pre-employment drug testing is important and ongoing random tests may be necessary depending upon the nature of your business.  A drug policy should not start and end with testing of employees. There should also be some way to help employees dealing with substance abuse issues. partnering with Alcoholics Anonymous or other similar organizations to help any and all employees with a problem get the help and guidance they need is essential to lasting success.

Make your Workplace Ergonomically Friendly  

One way to help your employees have a safe and comfortable work environment is to focus on the ergonomics of your office. It may be necessary to customize each individual work space to meet the needs of each individual employee. An employee who is six foot six inches tall will have different needs than someone who is five foot seven inches tall. Meeting the needs of each employee where they are is important to creating an ergonomically friendly environment. This may seem like a large cost up front, but it will be part of the most cost effective ways to save in 2019 for the long run. Limiting injuries that can cause workers compensation claims and cause employees to be out of work for extended periods of time can be done with an ergonomically friendly workplace.

Monitor Employee Morale

Monitoring employee morale is an effective way to keep employees happy and stop disgruntled employees from becoming many disgruntled employees. An unhappy worker can become careless in their work if that festers throughout the organization, it can create an unsafe work environment. . Taking steps to proactive about employee morale can help you deal with employee morale before it becomes a much bigger problem that is much more difficult to control at a later time.

Investigate Near Misses

It is important to create an environment where employees talk to you and your key employees about what has happened throughout the day. If there is a near miss situation it is the perfect teachable moment to show all staff what can happen when dealing with certain situations. It also can be a time when the leadership of an organization can learn and improve upon the businesses operations. Learning from near misses is always one of the best ways to save in 2019

Don’t Ignore Employees out on Workers Comp

When an employee is injured and not able to work. It is important to provide this employee with as much assistance as possible. Stay in communication with those employees in a way to show them you care. This is a way to get the employee back on the job sooner and back to full-time normal work quicker than other employees.

Return-to-Work Program

It is important to develop light duty ways for employees to get back on the job when they are hurt and not able to work. The quicker you get an injured employee back on the more likely they are to eventually return to full time permanent work.  These programs are better when you plan for them before you have an injured worker.  One of the best ways to save in 2019 is to set up a Return To Work Program that can get injured employees back on the job and back in to their work day routine quicker than a business without a plan.

Pay as You Go Workers Compensation Insurance 

A Pay as You Go Workers Compensation Insurance Policy is a great option for seasonal or cash strapped businesses.  This option allows a business to get coverage in place for a much smaller amount. It also reduces the likelihood of under or overpaying premium throughout the year because premium payments are made each month based upon the real time payroll from the previous month.

Establish a Safety Committee

Establishing a safety committee is a perfect way to get your staff involved in making your business more safe and is one of the best ways to save in 2019. Getting a person from each department is a good place to start. Creating a timeline for regular meetings and what should be done in between meetings. Also, it is important to have documented ways to put in to place everything that comes out of those meetings.

 

 

 

Posted in General | Leave a comment

Kentucky Workers Compensation Rates are Declining in 2019

Posted on December 27, 2018 by Mitchell Sharp

10.8% Decreases are in store for the Business Community in Kentucky 

In 2019, the business community in Kentucky will pay significantly less for Workers Compensation Premium.  Rates in 2019 will be 10.8 percent less than 2018. This is the 13th consecutive year of decreases in what businesses pay for Kentucky Workers Compensation Rates. The average reduction applies predominantly to the industries of manufacturing, office and clerical, contracting, as well as goods and services. Not all industries and businesses will see as significant of an decrease. Some businesses may see no increase at all depending upon their class code and their experience modification rating.  Coal classes increased 11.7 percent for surface mining and 16.7 percent for underground mining. Some industries will see better decreases in premium based largely on the appetite of the carriers operating within the state. No matter what, overall the business community will benefit from better Kentucky Workers Compensation Rates 2019.

Kentucky is the unofficial home of Horse Racing.

Why are Kentucky Workers Compensation Rates Declining in 2019

Rates are declining in Kentucky because of a number of reasons including; stability in written premium, lower combined ratios throughout the state, and lower loss-time claim frequency. Additionally, some legislative reforms have contributed to the decrease in Kentucky Workers Compensation Rates 2019. House Bill 2 (HB2) was a substantial factor in declining rates. HB2 cuts off workers’ compensation benefits when the employee becomes eligible for Social Security benefits, or two years after the injury or last exposure. Additionally HB2 attempts to, re-examine the cut-off provision in an effort to be all-inclusive. Instead of benefits terminating based on Social Security eligibility, now all income benefits will terminate when the employee reaches seventy (70) years of age, or four (4) years after the injury or last exposure, whichever last occurs. Insurance carriers anticipate this bill will result in lowering the amount they pay out for part-time and permanent disability benefits.

Belle of Louisville

Kentucky Workers Compensation System Over Haul

The legislature within the state of Kentucky have decided in the second half of 2018 to move forward with an over haul of the states workers compensation system.  This overhaul will be the biggest changes the system in Kentucky has seen in nearly two decades.  The changes revolve predominantly around HB2. HB2 is designed to help contain underlying costs and improving the system as a whole.  The changes will impact medical expenses and benefits within the Kentucky Workers Compensation System. This Overhaul also takes additional steps to address the opioid epidemic with pharmaceutical medical treatment guidelines. These guidelines are attempting to deliver appropriate care to injured workers while reducing waste related to the opioid epidemic.

As a benefit to injured employees, HB2 attempts to increase maximum compensation rates for temporary and permanent and permanent partial disability benefits. The overhaul also attempts to improve access to vocational rehabilitation services as well as improve the dispute resolution system. Also, HB2 attempts to place a 15 year benefit cap from the date of injury to apply to some workers filing claims because of on the job claims. Many of the workers eligible for this cap eventually return to the workforce. This should save the Kentucky Workers Compensation System extensively moving forward.

Kentucky Straight Bourbon Whiskey Barrels

What can Kentucky Business Owners do to Maximize Savings?

Create and Distribute Safety Guides

Safety guidelines can be prepared to address the specific risks your business faces. No matter what industry you operate in it is crucially important to prepare safety procedures for your employees to follow while on the job. Creating these guidelines does not have to be extensively time-consuming, but they should be thorough.

Implement the Safety Guidelines

Once the safety guide is produced, it is important to talk about it with all staff periodically and regularly. An emphasis on safety should start the day an employee is hired and should continue throughout their employment.

Maintain and Replace Old Equipment

It is important to adequately maintain all equipment employees use and to replace it in an appropriate amount of time. All equipment that your employees use need to be regularly maintained to prevent deterioration and malfunction.

Help your Staff Keep a Tidy Work Environment

Many injuries result from a cluttered work space. Clutter can lead to slips, trips, or falls; which are the most common injuries that result in workers compensation claims.

Use Appropriate Safety Gear 

Requiring your employees to always wear appropriate safety gear is crucial to keeping your staff safe and the frequency of insurance claims low. Safe equipment applies to office employees as well as blue collar employees. Hard hats, gloves, and eye wear are important for some industries. Other industries have employees nee ergonomic office equipment to help office employees with posture and prevent nagging injuries like carpal tunnel syndrome.

Posted in rates | Leave a comment