How To Reduce Workers Comp Claim Costs
In today’s litigious environment, claims against industrial companies are inevitable, and off-the-shelf solutions to manage liability risks are too often inadequate.
In the high-risk manufacturing sector, where large-dollar claims are common, small to middle-market companies struggle to find experienced partners capable of providing targeted risk control and effective techniques to lower loss results and reduce the effect on the total cost of risk.
According to Property Casualty 360, here are four tactics industrial companies can implement to reduce the cost of workers comp claims.
1. Understand Your Claims History
Effective claims management begins with an understanding of what has happened in the past followed by corrective actions to address loss trends and improve financial outcomes. For casualty lines of coverage, this process should involve:
- Analyzing claim trends that negatively affect loss experience and total cost of risk.
- Developing a risk control plan based on this review.
- Spelling out clearly the financial improvement to be expected by implementing the recommended plan.
This process of improving safety in targeted areas can help reduce insurance premiums by up to 15 percent in the…
Leave a Reply
Want to join the discussion?Feel free to contribute!