Worker Compensation – Factors to Evaluate When Trying to Control Your Costs
Gallagher Healthcare :: Industry InsightsBy Terra Andrews | 1/31/2014
Saving money and controlling costs are always objectives for insurance buyers. Whether it’s the CEO, CFO, controller, or business owner themselves, finding ways to manage your costs better is a constant. So when it comes to worker compensation insurance, there are numerous questions an employer should ask when evaluating their cost control strategies. Here are a few:
Are You Classified Correctly?
Classification codes refer to the type of work your employees are doing. Often, employers are not completely sure which classification codes to use for some jobs. Since different codes carry higher rates than others, it is imperative to make sure your employees are classified under the most applicable code. Consult with an agent or broker to help with identifying the proper classifications.
Have You Shopped Around Lately?
Each insurance carrier charges its own rates for its worker compensation policies. Shop around every few years and compare your current carrier’s rates to those of other carriers offering the same product. In addition, an insurance company can make adjustments to the rates it has filed. So the rates a carrier charges a certain type of company in one year could be very different from the rates it would charge that same company in a different year.
What Other Services Are You Getting?
Securing your insurance cover is one step, but the other services offered by an insurance carrier or broker show their true value to your organization, such as loss control, claims management, and regulatory issues. By working with an insurance carrier or broker who provides services like these, your company can save on the additional funds and resources needed to manage these types of tasks. Utilizing these services also positively reduces the frequency or severity of the claims reported, which ultimately helps to reduce premiums.