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