simple steps for busy employers presented by: presented by: al conrad department of labor &...

Simple StepsSimple Stepsfor Busy for Busy

EmployersEmployers Presented by:Presented by: Al Conrad Department of Al Conrad Department of

Labor & IndustriesLabor & Industries

Crucial Factors:Crucial Factors:

ClaimFrequency

ClaimSeverity

WorkerHours

How Much?How

Many?

Exposure toHazards

How are Industrial Insurance Premiums Determined?

Base Rate X Experience Factor X

# Worker Hours = Premium

Base Rate:Base Rate:

The amount we need to collect to The amount we need to collect to pay for the claims we believe are pay for the claims we believe are

going to happen.going to happen.

Risk Class Examples:Risk Class Examples:4904 -4904 - ClericalClerical $ .17 / hr$ .17 / hr

4906 -4906 - TeachersTeachers $ .31 / hr$ .31 / hr

0510 -0510 - Carpenters Carpenters $ 3.86/ hr$ 3.86/ hr

5001 - Loggers5001 - Loggers $ 16.66 / hr$ 16.66 / hr

6708 -6708 - Car/Boat Race $ 18.77 / hrCar/Boat Race $ 18.77 / hr

Experience Rating:Experience Rating:

The process of adjusting an employer’s rates above The process of adjusting an employer’s rates above or below base rates - based on the employer’s claim or below base rates - based on the employer’s claim

history.history.

Base Rate 1.0

6

Experience FactorsExperience Factors

DEF$20,000

ABC$40,000

XYZ$80,000

0.50 1.00 2.00Experience Factors

DF$200

ABC$400

XYZ$800

7

Employee Payroll DeductionEmployee Payroll Deduction

0.50 1.00 2.00

DEF$200

XYZ$800

ABC$400

Experience Factors

Purpose of Experience Rating: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 Encourage Workplace SafetyWorkplace Safety

Fairness & Equity

Composite Rate:Composite Rate:

Accident Fund

Medical Aid Fund

Supplemental Pension Fund

WHEN WILL AN INJURYWHEN WILL AN INJURYIMPACT YOUR RATESIMPACT YOUR RATES

2008

2009

2010

2011

2012

7/1/03 - 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 duringcalendar year:

…are impacted by claims witha Date-of-Injury during:

The Claims The Claims Management PlanManagement 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!!!HERO!!!HHave a plan!ave a plan!

EExpedite your involvement in xpedite your involvement in the claim!the claim!

RRelationship maintenance!elationship maintenance!

OOffer Light Duty or KOS! ffer Light Duty or KOS!

(or an alternative)(or an alternative)

THE PROCESS:THE PROCESS:

Claim Management ChecklistClaim Management Checklist

Take employee to the doctor!Take employee to the doctor!Take an introduction letter to Take an introduction letter to

the doctor office.the doctor office.

Carefully complete Employer Carefully complete Employer portion of the Report of Accident portion of the Report of Accident electronically (using the L&I Claim electronically (using the L&I Claim & Account Center). & Account Center).

Organize “1st Day Packet”Organize “1st Day Packet” to send to Department ASAP.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 He who documents has a better chance of better chance of winning!”winning!”

By Powell Shoemaker, L&I InvestigationsBy Powell Shoemaker, L&I Investigations

Wrap Up

Evaluations