 14 Steps To Lowering Your Workers' Comp Insurance
from the SCF Arizona
SCF specialists are always looking for ways to keep your workers’ compensation costs down, while providing appropriate medical treatment and compensation for your injured workers. But we can’t do it without you. A safe workplace doesn’t just happen; it takes commitment from everyone – from the top down. There must be no doubts about the priority that you place on your employees’ safety and health. By following the 14 steps below, you can greatly impact the costs of your workers’ compensation insurance.
1. Management commitment — When management continuously demonstrates genuine interest in preventing accidents and providing a safe and healthy workplace, supervisors and employees are more likely to do the same. Experience has shown that sincere commitment and active participation by management are absolutely necessary if a loss control program is to achieve beneficial results.
2. Supervisory accountability — Because supervisors or team leaders are on the job with line-level employees daily, the job of reinforcing safe work behavior falls to them. Management should specifically instruct supervisors of the steps they need to take when directing employees to work safely.
3. Observe careful hiring practices — Company personnel in charge of hiring need to ensure that job candidates are carefully matched with the skills and abilities needed to perform the job. Job references should always be checked and specific questions dealing with former safety practices should be explored as well as the candidate’s ability to perform the job.
4. Prevent accidents — In any business, accident prevention is the key
to success in keeping claims costs low.
5. Danger awareness — Be aware of and immediately fix any dangerous conditions. Always look for trouble spots. Report any hazards immediately so that they can be corrected. Falls are responsible for more fractures, open wounds and brain injuries than any other cause of injuries.
6. Set up and publicize your company’s safety policy — SCF’s loss control consultants can work with you to provide safety programs and educational training programs appropriate to your individual business.
We will show you how to conduct a ‘safety audit,’ which assesses the entire safety system, involving all employees within your organization.
7. Report injuries immediately — All accidents and significant incidents should be promptly reported and investigated to determine the causes. Promptness is essential as persons involved may quickly forget important facts. The "Employer’s Report of Injury" (form 101) is your first step in determining compensability and helps assure that your employee will get the required medical treatment.
The form is to be completed by the employer and must be filled out accurately and completely to avoid delays that might lead to increased costs. Submit, if possible, within 24 hours to SCF and then mail the original to the Industrial Commission of Arizona.
8. Partnership is the key — Work in partnership with your SCF claims adjuster, reporting any pertinent changes or facts relating to a claim. Staying in close communication with SCF helps us help you in keeping costs down.
9. Exercise control of medical costs — Since medical bills make up the bulk of claims expenses, it is important to direct injured workers to a physician or clinic in the Preferred Connection Network (PCN). (Under Arizona law, employers are allowed to direct injured workers to a physician of the employer’s choice for the first visit. Many will continue to be seen by the same doctor for follow-up visits.)
All doctors and clinics that are a part of SCF’s medical network offer quality care at rates discounted from the Industrial Commission’s physicians’ fee schedule. As an added bonus, PCN providers agree to make referrals only to other medical providers within the network. SCF suggests that employers pre-select a preferred provider facility before an accident occurs and advise workers in writing of the designated site.
10. Encourage early return to work programs — Develop and maintain modified work programs and encourage early return to work. Premiums are reduced; the risk of possible litigation is lowered; less retraining is required as there is no need to hire additional employees; employee morale is bolstered which increases overall productivity – all of which help lower your costs.
11. Develop a certified drug and alcohol program — Senate Bill 1410, passed and enacted in 1999, provided that an employee’s alcohol or drug-related injury may not be compensable if the employer has established an alcohol and drug testing program that complies with the statute’s requirements. SCF allows a 5 percent premium credit for establishing such a program. Our loss control consultants are happy to assist you in establishing your certified program that can result in savings to you.
12. Report possible subrogation actions — Subrogation actions involve cost recovery from any third party which may have contributed to the injury or illness. At SCF, our legal team will pursue subrogation matters at no cost to you. Depending on the circumstances, this could result in huge cost savings to you.
13. Look for and report suspected fraud — Our special investigations unit aggressively pursues suspected fraud cases. When you fill out the
101 form (Employer’s Report of Industrial Injury), if you question the validity of the claim or if you believe alcohol or drugs may have been a factor, there is an area (item 31) for you to voice your concerns.
Our fraud unit also maintains a confidential fraud hotline (800.526.5226) where anyone suspecting any type of workers’ compensation fraud may report suspicious activity. This unit’s surveillance and prosecution efforts have resulted in savings of hundreds of thousands of dollars in savings.
14. Association Safety Program (ASP) participation — SCF works with associations to offer members the opportunity to lower the cost of workers’ compensation insurance. Safety and loss prevention are the foundation of our relationship with our many business associations at SCF. In working with our associations, we have placed a renewed emphasis on safety in the workplace – the first and foremost key to saving workers’ comp costs. |
