Simple Steps for Busy Employers Presented by: Presented by: Al Conrad Department of Labor & Industries Al Conrad Department of Labor & Industries
Crucial Factors: Claim Frequency Claim Severity Worker Hours How Much? How Many? Exposure to Hazards
How are Industrial Insurance Premiums Determined? Base Rate X Experience Factor X # Worker Hours = Premium
Base Rate: The amount we need to collect to pay for the claims we believe are going to happen.
Risk Class Examples: Clerical$.17 / hr Teachers$.31 / hr Carpenters $ 3.86/ hr Loggers$ / hr Car/Boat Race $ / hr
Experience Rating: The process of adjusting an employer’s rates above or below base rates - based on the employer’s claim history. Base Rate 1.0
6 Experience Factors DEF $20,000 ABC $40,000 XYZ $80, Experience Factors
DF $200 ABC $400 XYZ $800 7 Employee Payroll Deduction DEF $200 XYZ $800 ABC $400 Experience Factors
Purpose of Experience Rating: Experience rating provides an economic incentive to prevent accidents. If past accident costs are low…we would expect future costs to be low. Hence charging lower premium rates. Past predicts the future……. Encourage Workplace Safety Encourage Workplace Safety Fairness & Equity
Composite Rate: Accident Fund Medical Aid Fund Supplemental Pension Fund
WHEN WILL AN INJURY IMPACT YOUR RATES /1/03 - 6/30/06 7/1/04 - 6/30/07 7/1/05 - 6/30/08 7/1/06 - 6/30/09 7/1/07 - 6/30/10 Premium rates during calendar year: …are impacted by claims with a Date-of-Injury during:
The Claims Management Plan The Claims Management Plan
Overall Keys to SUCCESS: Accident Prevention Plan Claims Management Plan that are both in WRITING and EFFECTIVE IN PRACTICE
How can I minimize the costs of my claims?
HERO!!! H ave a plan! E xpedite your involvement in the claim! R elationship maintenance! O ffer Light Duty or KOS! (or an alternative)
THE PROCESS: THE PROCESS: Claim Management Checklist
Take employee to the doctor! Take an introduction letter to the doctor office.
Carefully complete Employer portion of the Report of Accident electronically (using the L&I Claim & Account Center).
Organize “1st Day Packet” to send to Department ASAP.
1st Day Packet Job Description of Job of Injury Employee’s work history (i.e. copy of original job application) Current Payroll records (including cost of health/dental insurance) Copy of internal accident investigation
No modified work????? What to do: Maintain the employer- employee relationship!
“He who documents has a better chance of winning!” By Powell Shoemaker, L&I Investigations
Wrap Up Evaluations