How to Lower Your Workers’ Comp Experience Modification Rate
When high, an experience modification rate, also known as an e-mod, can result in expensive Workers’ Compensation coverage. So, how can you lower your Workers’ Compensation experience modification rate?
Lowering your company’s experience modification rate is possible by implementing safety programs like drug-free workplace programs. This can allow you to identify Workers’ Compensation fraud and reduce the number of claims paid out by your carrier. Offering injured employees transitional jobs, requiring employee training, screening employees, increasing managerial oversight, and investigating Workers’ Compensation claims can have a similar effect. By lowering your experience modification rate over time, you can also lower the cost of your Workers’ Compensation premiums. This can allow you to continue providing your employees with Workers’ Compensation and stay in accordance with your state’s Workers’ Compensation requirements.
To get help finding coverage for your company or to learn more about experience modification rates, call the Workers’ Compensation insurance brokers of NPN Brokers at (866) 340-9120.
Lowering Your Workers’ Comp Experience Modification Rate
If your company has a high experience modification rate, its Workers’ Compensation premiums will likely reflect that. Fortunately, there are a few things employers can do to actually lower their experience modification rates. This include implementing safety programs, offering transitional jobs, requiring employee training, increasing managerial oversight, and investigating Workers’ Compensation claims. By lowering your company’s experience modification rate, you can ultimately get less expensive Workers’ Compensation insurance.
Implementing Safety Programs
Lowering your company’s experience modification rate starts by reducing its actual losses from Workers’ Compensation claims. To make changes on that front, consider the benefits of implementing safety programs. Such programs, like drug-free workplace programs, can make it easier for employers to drug-test employees after workplace accidents. If an employee was using drugs or alcohol at the time of their accident, their Workers’ Compensation claim will be denied. This means that your company’s actual losses from Workers’ Compensation claims might decrease. Certain states offer Workers’ Compensation credits for employers who implement safety programs. For example, Florida offers a 5% Workers’ Compensation credit for employers who implement drug-free workplace programs.
Safety programs can do wonders for a company’s experience modification rate. As workplace injuries reduce in frequency and a company proves its commitment to maintaining a safe working environment, its Workers’ Compensation premiums might reduce drastically.
Offering Transitional Jobs
Your company’s experience modification rate is the result of its actual losses divided by its expected losses. Expected losses are based on industry information. You can offer injured employees transitional jobs to reduce your company’s actual losses when it comes time to calculate its experience modification rate. This might result in fewer lost-wage Workers’ Compensation benefits paid out by your carrier. Transitional jobs can allow injured employees to return to work sooner, albeit at a lower earning capacity. Still, a transitional job that is within an employee’s work restrictions can help lower your company’s experience modification rate.
Offering transitional jobs becomes easier when companies have mechanisms in place to help injured employees return to work sooner. If you have guidelines to follow, you can help employees return to work sooner, reducing the benefits your Workers’ Compensation carrier has to pay.
Requiring Employee Training
Another way to lower your company’s losses from Workers’ Compensation claims and its experience modification rate is to require employee training. This is especially important for companies in high-risk industries like construction or manufacturing. Make sure employees complete all training modules and are prepared to handle their responsibilities in the workplace. When employees cause their injuries due to negligence, they are still entitled to Workers’ Compensation benefits. You can also require employees to undergo routine evaluations and training programs to remind them of the proper way to complete their responsibilities in a safe manner.
In addition to requiring extensive employee training, you can ask an employee’s previous employer about prior workplace accidents or Workers’ Compensation claims. This can alert you to possible fraud and help you prevent future losses, lowering your experience modification rate. Hiring an employee who has filed several Workers’ Compensation claims in the past might not be wise. They could be intentionally getting injured on the job to recover benefits. You should always check a prospective employee’s references before you hire them.
Increasing Managerial Oversight
Increasing managerial oversight may also be important, especially if your company is prone to workplace accidents. When employees know that they are being evaluated, they may be less likely to act negligently or recklessly when performing their duties. Having an authoritative figure in the workplace is especially important for companies in high-risk industries. Increasing managerial oversight can have a profound effect on the frequency of workplace accidents and ultimately lower Workers’ Compensation claims, positively impacting your experience modification rate.
Investigating Workers’ Comp Claims
You can work together with your company’s Workers’ Compensation carrier to lower your experience modification rate. This begins with maintaining open communication with your carrier and providing it with all necessary information following an accident in the workplace. If your carrier requires the names of employees who witnessed an accident take place, give them. Furthermore, any additional evidence you can provide that undermines an employee’s claim, such as surveillance footage that shows they intentionally caused their injuries, can be useful to your carrier. By helping your carrier to investigate workplace accidents, you can ensure that only valid claims are approved. Workers’ Compensation claims can be denied for any number of reasons, such as drug or alcohol use or intentionally causing one’s injuries. A Workers’ Compensation claim can also be denied if an employee failed to seek medical care from approved professionals. In such instances, an employee would be denied medical benefits, lowering your company’s actual Workers’ Compensation losses.
Call NPN Brokers to Get Insurance Now
Call NPN Brokers at (866) 340-9120 to get coverage from our Florida Workers’ Compensation insurance brokers today.
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