“9 Critical Steps to Better

Control Your Workers’

Compensation Costs”

Workers’ compensation laws and regulations increase in volume and complexity each year. As a result, employers have grown accustomed to letting their insurance company control the cases and the costs.

 A recent study by the Workers’ Compensation Insurance Rating Bureau shows 75% of premium and investment income was spent on claims costs. This includes disability benefits, medical care, and vocational rehabilitation costs, etc.

 Here are 9 steps you can take that can have a direct impact on your workers’ compensation insurance costs:


  1. Match the applicant carefully to the job. Base the match on the applicant’s skill and abilities. Your careful hiring practices can go a long way toward reducing your costs. The department of Fair Employment and Housing has brochures which can guide you in conducting job interviews. Note: Discrimination because of a handicap is unlawful.


  1. Make safety a priority on the job every day.  A safe workplace can lower your claims cost. It is far cheaper to prevent an accident than to pay for one. Loss control staff can assist you in providing a safe and healthy workplace for your employees by designing safety programs relevant to your business operation.


  1. Fix dangerous conditions.  When you become aware of a hazard on the job site, repair it. Your failure to do so could result in a “Serious and Willful Misconduct” suit against you, which carries severe penalties. These penalties would be paid by you, not your carrier.


  1. Train supervisors.  In workers’ compensation law, supervisors are included in the definition of “employer.” A supervisor’s failure to follow the law counts against you. Share this information with your supervisors and make sure they know all that is required of employers.


  1. Report employee injuries.  As soon as you are aware of an injury, notify your carrier by completing and sending the FROI (First Report of Injury). The report requires you to provide information such as the nature of your business, the type of employee injury or illness and how it occurred. Your complete statements in each of these sections are necessary in order to determine the appropriate benefits. For example, information about your employee’s work hours and salary are needed to compute benefit payments. Please don’t leave any sections blank. Many companies have a 24- hour Claims Reporting Center. Check your policy or call our office for details.


  1. Gate Keeper Physician. Industrial clinics can cost considerably less than a hospital emergency room and they are familiar with worker’s compensation insurance procedures. If you do not know of




Communicate with your employees. Show them you care

about their well – being. If an employee is injured, stay in

 touch throughout his or her recuperation.



a physician or medical facility, call your carrier or agent for suggestions. Be sure to post notices with name, address and phone number of your medical provider so your employees know where to go in case of an injury. Remember, the first concern after an injury is to get prompt medical attention.


  1. Communicate with your employees.  Show them you care about their well-being. If an employee is injured, stay in touch throughout his or her recuperation.


  1. Consider an Early Return to Work Program.  An ERTW program can help bring your injured employee safely back to work as early as possible. This transitional job is adjusted to accommodate the employee’s improving condition until he/she can return to his/her usual duties. Your costs are reduced; your employee can return to a self-supporting status; everybody benefits. Doesn’t that make good sense? Notify your adjuster or representative if you can provide a transitional modified/alternative job for your injured employee. Early Return to Work ( ERTW ) consultants will provide assistance in developing a program for your business.


  1. Maintain records.  Your personnel files can be of great assistance to your carrier in dealing with some cases. Information about an employee’s wages, previous work history, recreational activities, any current work problem, and previous injuries is essential in fighting disputed claims.



Terry Young

Call Now 256-442-3443 or

Toll Free 877-222-UROK (8765)

For A FREE, No Obligation Phone Quote


Compliments of Terry Young

Southern Risk Services

3224 Rainbow Drive - Suite 2 - Rainbow City, AL 35906

Phone 256-442-3443 - Fax 256-442-9546



2236 Cahaba Valley Drive

Birmingham, AL 35242


Posted 11:05 AM

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