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As a business owner, controller, or CFO, you may feel as though you have not control over your business insurance premium costs.

Well, that is not entirely true.  I have outlined several aspects of premium saving strategies that may save your company thousands of dollars over the next several years.

  • Close out OPEN Claims on your workers’ compensation program. Work diligently to close the open claims prior to your upcoming renewal will have a substantial impact on your experience modification factor and your renewal premium.
  • Report insurance claims immediately – don’t delay.  Reporting claims within 24-72 hours allows your claims administration team to get started and work on early resolution.
  • Explain the impact of a claim to your leadership and supervisory staff in terms of “what you produce or what service you provide”.  For instance, if a sprained ankle costs $2300 in claims costs, what would that represent in terms of sales or service hours from a profitability standpoint?  Point being, involve your staff in the true costs of loss, not just assuming that is what the insurance is for.
  • Make it a point to offer light duty whenever possible.  Getting an injured worker back to work minimizes the likelihood of third party intervention, i.e., an attorney.  Furthermore, it helps keep the injured worker engaged in the company, avoiding the interpretation that no one cares.
  • Check to make sure your Experience Modification factor is correct.  The Experience Modification Factor is one of the determining factors when determining a companies insurance premium for workers’ compensation.  Have your agent or broker verify the numbers are accurate.
  • Consider taking a deductible or retention program.  This is critical.  Underwriters know that if a company has “skin in the game” they will likely have fewer losses, thus lower premiums.
  • Keep your supervisory or leadership team accountable for losses associated with workplace activities.  Measure the success of your workforce in terms of loss prevention in lieu of a claims penalty program.
  • Personally speak to your underwriter.  Having the chance to meet and speak face-to-face with the person determining your premium is one of the best ways to ensure they understand your business and that you care about your program.  Time and again, I hear that business owners have never met their underwriter, and I cannot figure out why.