Insurance Claims Go To Your Bottom Line!

The Costs of insurance claims are now directly impacting the insurance premium in several components of the typical business insurance program. In the past, many employers, particularly those in construction and heavy metal trades, looked at insurance costs as a necessary evil that was just a cost of doing business. These business owners calculated that since they had no control over the insurance costs and because it was not a particularly large component of their operations, they might as well ignore it, or in some cases go without it.

By extension, the same attitude applied to claims, particularly work comp claims. They were a just a part of doing business and it was better to let the insurance company worry about them as It wasn’t worth the time and effort to do anything about them. Besides, claims were going to happen anyway. In any case, both management and fellow employees looked down on workers who claimed an injury and most workers feared they would either loose their job or be ostracized by co-workers if they failed to work in spite of a little pain. There was also a tendency by employees to avoid reporting claims that also involved property damage for fear of being found responsible for damage repayment and/or being fired. It doesn’t work that way anymore. Many workers are now inclined to “enhance” their injuries to maximize the amount of lost time and settlement payments they receive and sometimes claims have been strongly encouraged by other workers and unions As a result, the insurance companies have become somewhat creative in the methods they use to reduce these costs or in some cases, shifting responsibility back to the employer. Methods for doing so include “return-to-work” programs, safety and loss control reviews, inspection of the employer work sites, training for loss reporting and claims monitoring, along with adjustments to the employer’s insurance premium through experience rating techniques and reduction in premium credits. So employers like you need to be insurance “savvy” if you are to survive these challenges. Fortunately, there are effective methods that every employer can use to negotiate these new hurdles and keep their company profitable. We will consider many of these methods on the "Doctor Claims" website, and by utilizing some new ideas and working closely with your insurance agent or broker, you will find your way through this costly quagmire.