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How to create a return to work program that is a win-win

A return to work program is part of a businesses over all risk management plan.

If done well a return to work program can benefit both the employer and employees.

Returning to work can be a hassle for employees to navigate. Anything an employer can do to make the process easier for their employees will benefit the employee as well as the company in the long term. That process should start before the injury occurs by putting an emphasis on safety in order to prevent the injury from occurring in the first place. Unfortunately, if you are in business long enough an injury to one of your employees will inevitably occur. When it does, helping your employee get the medical care they need and helping them get back on the job promptly can be crucial to the success of your business. Here are 4 ways an effective return to work program can help your business succeed.

Put your return to work policy down in writing: Why putting this program in writing is that the process of putting this policy in writing can help you determine what are the issues that employees actually face when they are dealing with injuries and how to best help them through this process. You should have some key employees from all levels of your business be a part of this process. Maybe even include someone who recently had an injury at work. These in-sites may help you determine some risks your business faces that you may be able to prevent future injuries.

Develop a process for Communication throughout the process: Once you have a return-to-work program in place you need to ensure all of your managers read and understand the policy clearly and concisely. It may be effective to have one person be the point person for the program, but it is equally important to have them train all the other managers and upper level employees about the program. This is important you do not want to be left in a bind if that person is on vacation when an injury occurs or if that employee leaves the organization altogether. Make sure your employees understand how this program impacts the bottom line. Helping them communicate this program down through the ranks via meetings, email and your intranet.

Start the plan immediately upon injury/illness: The moment an injury occurs the return to work program needs to be implemented. This should be outlined clearly in the program. Documenting everything is crucial to protect the business and to ensure the employee gets the proper medical attention and wage reimbursement through your workers’ compensation insurance policy. The quicker you implement this program it will instill confidence in the injured employee that you care about their well-being and will contribute to them wanting to get back to work more quickly.

Close your claims quickly: Once your employee is recovered and back on the job, it is important to close the workers’ compensation claim quickly. Carriers will leave the claim open for a while after the employee returning to work. They do this to make sure the employee does not reinjure themselves upon returning to work and needing additional benefits. Remember that the underwriter may leave this claim open and it can cause your loss cost ratio to be much higher than it actually is. If you are renewing your policy this can negatively impact what you pay for premium. For this reason it is important to periodically check in to make sure the claim is closed as soon as it possibly can.

Why so many questions???

Shopping your Workers Compensation insurance –

4 Tips for the best and fastest results

Shopping insurance can be a daunting task. This is not commonly the case with other purchases. When you buy a couch, you just pick out one that feels comfortable. One that fits your room or matches your style. You look for one that is in your price range and bam! you have the newest edition to your next super bowl party.

Shopping insurance, as much as we would like it to be, is not like buying a couch. Yes, you shop for a policy that fits your coverage needs and the budget you are able to afford, but there are some distinct differences to shopping for an insurance policy. An important factor to consider is the seller’s motives. When you buy a couch, the sale for all intents and purposes is over. The expense and liability of the company selling the couch is basically the same no matter who they sell the couch to. When you buy insurance, the company who is providing that coverage doesn’t have the same benefit. Insurance companies use a variety of data to determine the risk of each person or business purchasing from them. The reason this information is used is because it has been shown somewhere in their data that this factor shows a correlation between certain variables and their likeliness of a claim. There are something you can do to help tip the odds in your favor. Here are four tips for making the quoting process easier for you and can help you get you the best price you desire:

Be Presentable: Dress your business up for Sunday church, not casual Friday. Show a clear outline of the purpose of your business and the kind of work you do. Equally importantly is to outline the work you won’t do. Make sure your marketing material and websites match this. There are few objections harder to overcome with an underwriter than a website that says you do something your application says you do not. Having these things in line is the best way to get a great first impression.

Be Open about the biggest risk: Every company has some operations that are lower risk than others. Insurance is as much about preventing claims as it is about paying them. The goal of the industry is to make your business whole after a claim, but wouldn’t it be better if we help you to prevent that claim from happening in the first place. Tell your agent about everything you do. If we don’t know that you are hanging from a rope 50 ft off the ground with a chainsaw in your hand, we can’t help find a better way to protect yourself and your employees in that situation (true story).

Note the details: Sometimes high risks are deal breakers, however sometimes in the right circumstances this can be overcome by showing the amount of this exposure. “Yes, we do work on roofs, however they are only flat commercial roofs and only ones with inside stair access or a permanently attached ladder with walls around the perimeter”. The controls you have in place for the highest risk work will be the most vital controls to focus on.

Don’t be afraid to show your hand: A lot of times people look at an insurance purchase like a poker game. If you are buying insurance as a commodity, then that’s what you should expect to receive when you want that policy serviced.

If you work on the same side of the table with your agent however they can work to get the best pricing possible. There is no better pricing than you can obtain from an insurance company than when the underwriter knows what they are insuring. When the underwriter is confident in your business and knows what price they have be at to earn your business they may be more aggressive with credits and discounts. There is much more savings to be had if you say “this is the premium you have to be at to earn my business” than there is with “show me your best price”.

12 terms to familiarize yourself with before your next renewal.

Insured

The person, group, or organization whose life or property is covered by an insurance policy.

Insurer

Insurance company that issues a particular insurance policy to an insured. In case of a very large risk, several insurance companies may combine to issue one policy.

Named Insured

Any person, firm, or organization, or any of its members specifically designated by name as an insured(s) in an insurance policy. .

Premium

The price or amount paid for insurance.

Claim

A formal request to an insurance company asking for a payment based on the terms of the insurance policy.

Carrier

A company that offers and underwrites insurance policies.

Policy

A document detailing the terms and conditions of a contract of insurance.

Underwriter

The person who decides whether to provide insurance and under what terms.

Agent/Broker/Producer

A person licensed by a state and employed by an insurance company to sell insurance policies on the company’s behalf.

Umbrella Coverage

Umbrella coverage protects your business when your existing liability insurance policy limits can’t cover all the expenses of a claim.

Hired and Non-owned Auto

A coverage that is commonly added or endorsed onto a commercial auto insurance policy. This endorsement adds additional coverages for the insured in the event there becomes a liability issue for an automobile accident involving a vehicle they don’t directly insure (rentals or employee owned cars).

Experience Modification Rating

An employers’ Experience Modification Rating refers the factor calculated from actual loss experience. It is used to adjust the businesses premiums (higher or lower) based on the businesses loss experience relative to the average underlying manual premiums for workers compensation coverage. The Modifier (Mod) compares the insured experience to the average class experience.

Additional Terms to consider familiarizing yourself with before your nest renewal

Waiver of Subrogation

A Waiver of Subrogation is a contractual provision whereby an insured waives the right of their insurance carrier to seek redress or seek compensation for losses from a negligent third party.

Certificate of Insurance

A certificate of insurance is a document that is used to provide info on specific insurance coverage and provide verification insurance is in place at the time of issuance. The certificate contains the types and limits of coverage, the carrier, policy number, named insured, and the policies’ effective dates.

Certificate Holder

The certificate holder is the person, business, or nonprofit organization who is provided with a certificate of insurance to prove coverage is in place at the time of issuance. The certificate holder will be notified if at any time the policy is cancelled before the listed policy effective date.

Additional Insured

The Additional Insured is the person or organization who is not automatically included as an insured on an insurance policy, but who is included under the policy at the request of the named insured.

Workers Compensation Fraud

Fraudulent Workers Compensation Claims – How to Defend Against Them

Over the course of 10 years writing workers compensation insurance, throughout the country a very common conversation I have with business owners is “that claim was fraudulent”. For the most part the explanation I am given seems correct, but the story is only one-sided. For that reason, how can I fully agree with the business owner. Fraudulent or not, workers compensation claims cause the overall cost of the coverage to increase almost immediately for the business owner.

One solution rarely thought about is requesting your company loss runs periodically throughout the year. Some business owners are so disconnected from their employees that claims are filed without the business owner knowing what really happened. I have personally insured a business that suffered a $180,000 fraudulent claim and the business owner didn’t realize the injury was serious. Certainly not serious enough to amount to $180,000 in medical costs, compensation and the attorney fees. From my perspective I have to ask: How do you not realize a fraudulent injury occurred, that has a large effect on your insurance cost, until the increase happens? As a business owner, by requesting your loss runs periodically you can monitor 2 very important things. 1. Which employee filed a claim? If the claim is fraudulent then you can catch it early enough to attempt to fight the claim being paid. 2. Has the insurance carrier properly closed the claim? When claims are “open” the insurance provider typically sets aside an amount in a reserve account. This amount is for just in-case the claim pays more. For example, if someone hurts their back, goes back to work and re-injures their back. This is what the reserve amount is for. The reserve amount counts against your claims history until it’s closed.

Another solution is having the same supervisor, foreman or key employee being responsible for handling all claims. One of the best solutions I have ever heard was a nursing home. This nursing home required all injured employees to report to their claim to one supervisor. That supervisor was required to write the report, drive the employee to the doctor’s office and listen/report the information relayed to the doctor by the injured employee. By doing this the story has been told twice with the same details and reported by the medical professional within their file. Almost all of us have smart phones that allow the supervisor and employee to take pictures or video the interview if needed.

The easiest solution to avoiding fraudulent claims is creating a safe work environment. Safety within the workplace and enforcing those requirements are the easiest way to avoid claims. A great first step is to have the business owner, supervisors and key employees almost always present when the employees are working. As the business owner you need to show the employees you care and appreciate them. Reward employees for long periods of time where 0 claims occur. If at all possible, develop a return to work program. By creating a return to work position, with light duty the employee is motivated to return to work quicker and reduces the overall cost of the claim. Your workers compensation provider can assist with setting up a return to work program. Ask them for assistance and documentation for setting up a program, make sure you input into your employee handbook.