Workers Comp

Controlling Workers Comp Policy Costs

The upfront cost of a workers’ compensation policy is certainly an important factor when selecting an insurance provider. But when it comes to insurance, a workers’ compensation carrier’s focus on safety, fraud detection and prevention, managed care and claims management provides added value that better protects businesses for the future. The following factors may impact the cost and outcome of workers’ compensation claims and the overall cost of workers’ compensation insurance:

• Early Reporting: Timely reporting of any workplace-related accident or injury assists not only in the investigationof the cause, but also the development of safety measures to avoid similar occurrences.
• Have a Pre-Arranged Medical Care Facility: Having a pre-arranged medical facility can benefit your organization by helping you get your injured worker the care he or she needs and possibly back to work (when medically possible) faster. You can also request that this facility perform post-accident drug testing on all injured employees.
• Creating an Alternate-Duty Work Description and Program: Businesses that provide an alternate duty work program for their injured employees can help reduce their time away from work and may lower Workers’ Compensation costs. In addition, this can help minimize the possibility for fraud and attorney involvement. Businesses should strive to provide alternate duty until full recovery by their injured employees, which reduces cost and time away from the employees‘ regular work.
• Implementing a Successful and Cost-Effective Safety and Health Program: Experience shows that with informed planning and proactive hazard analysis and controls, plus committed safety training and enforcement, workplace accidents and injuries can be reduced. By implementing an effective injury prevention program, businesses can increase productivity, reduce claim costs and ultimately reduce their experience modification factor.

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Basics of a Good Safety Program

The following are some key elements that every formal safety program should have:

• Management Commitment: Management should create a culture that discourages unsafe conditions and behaviors. Management’s commitment is the first step to successful injury prevention.
• Responsibility and Accountability: Responsibilities and expectations must be developed for top management, supervisory, and hourly employees. All employees must be held accountable for meeting the expectations of your safety program.
• Safety Work Rules and Procedures: Safety rules and procedures should be developed and communicated to supervisors and employees so they will know their responsibilities. Rules must be enforced, and management and supervisors must be accountable for this enforcement. Employees should be held accountable for these rules.
• New Employee Orientation: A new employee orientation program must be developed to provide new-hires with information about the work environment and their job safety responsibilities. This is the first training that a new employee will receive that demonstrates management’s commitment to injury prevention.

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Employee vs 1099 Independent Contractor

An employee status is generally considered to exist when:

Must comply with the employer’s instructions
✔ Receives employer sponsored training
✔ Provides services that are an integral part of the business
✔ Renders services personally
✔ Hires, supervises, and pays assistants for the employer
✔ Has a continuing relationship with the employer
✔ Must follow set hours of work
✔ Works full time for the employer
✔ Works on the employer’s premises
✔ Performs tasks in an order of sequence set by the employer
✔ Must submit oral or written reports
✔ Is paid by the week, hour, or month
✔ Is paid for business and/or traveling expenses
✔ Is furnished with tools and materials
✔ Does not have a significant investment in the service-providing facilities
✔ Cannot realize a profit or loss
✔ Works for only one employer at a time
✔ Does not make services available to the general public
✔ Can be fired, and may quit without incurring liability to the employer
✔ When the employer has the right of control over the worker, whether exercised or not