SRA STRATEGIC RISK SOLUTIONS-BUR-WOrkers Compensation

WORKERS' COMPENSATION


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Strategic Risk Advisors approaches challenges with a completely open mind "thinking outside the box" instead of using the common solutions. We strive to provide high-quality solutions to increase your efficiency and productivity.

Workers' Compensation

Workers' Compensation costs are rising rapidly, making it essential for organizations to take proactive steps to reduce both the frequency and cost of claims. While it’s impossible to prevent every workplace incident, Workers' Compensation insurance provides crucial protection. This coverage includes two parts: Part A, which covers employee accidents and illnesses while on the job, and Part B, which is Employer's Liability for claims that an employer knowingly placed an employee in harm’s way. In the majority of cases, claims fall under Part A. Workers' Compensation is mandatory in all 50 states and is governed by extensive regulations.

Coverage Review and Marketing

Workers' Compensation is one of the most heavily regulated types of commercial insurance, with oversight typically provided by state commissioners and, in many cases, the National Council for Compensation Insurance (NCCI) for rate-setting and premium guidelines. Despite this oversight, individual insurance companies still have the flexibility to set their own rates and underwriting guidelines. Regular remarketing of your Workers' Compensation policy ensures that your business maintains a cost-effective insurance program. Beyond premium rates, factors such as the insurer’s claims processing and available loss control services are also critical in selecting the right policy.

Evaluation of Funding Options

For most small and medium-sized businesses, guaranteed-cost Workers' Compensation programs are the most common. However, other options such as small deductible, large deductible, or self-insurance programs may also be considered based on the company’s risk tolerance. A thorough evaluation of past claims is vital when exploring these funding options.

Claims Review, Safety Programs, Payroll, and Premium Audits

Workers' Compensation premiums are heavily influenced by past claims history. The NCCI assigns each business an Experience Modification Factor (Mod Factor) that compares its actual claims to industry norms based on payroll by job classification. It’s important for companies to conduct regular claims reviews to ensure effective management of claims, which can lead to cost savings. Implementing robust safety programs can further reduce both the frequency and severity of claims, ultimately lowering future premium costs.

Additionally, since Workers' Compensation premiums are based on payroll estimates, it’s crucial to classify employees correctly according to their job functions. At the end of the policy period, the insurer audits the actual payroll, which can lead to adjustments in the premium. Properly managing this audit process can directly impact your final Workers' Compensation costs.

Let us help you optimize your Workers' Compensation strategy to ensure compliance, reduce claims, and minimize costs.

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