Workers Compensation Claims and the Impact on the Cost to Employers
To continue with the theme of workers compensation, it's critical to understand how different types of workers compensation claims impact the modification factor and how you (the business owner) can manage your claims in the smartest way possible. Each workers compensation claim has a different impact on your modification factor and a different penalty amount.
While on the surface it may seem advantageous to put through every claim right away, that may not be the wisest decision and you should know how each claim is going to impact your modification factor for the next 3 years. Depending on the claim, it can make more sense for the employer to pay the claim (up to a certain dollar amount) as often it's not the large claims which negatively impact the modification factor as much as the frequency of the claims.
Keeping this short but reach out when I can be a resource and we can do a deeper dive into your workers compensation.
SE
Director of IMPACT Analytics @ AssuredPartners
5 年Important to take on stragistic risk for sure. Agreed as you've spoken to, small deductible plans can quickly eliminate points from an organization's work comp cost, and all the while remaining completely risk averse. Thanks for sharing and keeping these discussions at the forefront.