Like materials, leases, and taxes, workers’ compensation insurance is a necessary and unavoidable operating cost for your insureds. That doesn’t mean it’s an altogether fixed cost. This presents you with a great opportunity to help your insureds save money, and strengthen your relationship along the way.
There are two general methods for lowering workers’ comp costs: lower your manual premium, or lower your ex-mod.
From an operational perspective, helping insureds lower their manual premium is the much more difficult option of the two. Since their manual premium is determined by payroll, location, and the kinds of work their employees perform, to change this number they would need to cut workers’ pay, relocate their company, or start another business entirely.
Lowering their e-mod is a completely different story. As a reminder, an e-mod is a multiplier based on your insured’s environmental health and safety performance. It can have a positive or negative impact on their premium. If your insured has better EHS outcomes than their competitors, they’ll get a discount on workers’ comp insurance. If they do worse than their competitors, they’ll pay a higher rate.
In other words, lower their e-mod and you’ll lower their premium.
Here are six practical ways to help insureds lower their e-mod:
And, did you know you can provide all these resources to your insureds in one fell swoop?
That’s where KPA’s Risk Management Center comes in.
1. Eliminate sources of past losses.
This one is pretty straightforward. Help your clients find and fix any known and potential hazards in their facilities.
How the Risk Management Center Helps:
Report claims and reduce incidents with the RMC’s Incident Track. Track employee injuries and related time off work, conduct incident analyses, and run OSHA 300 Logs.
2. Ensure workforce compliance.
Help your insureds understand and follow all the rules their organization is accountable for—from Occupational Safety and Health Administration regulations to laws on the state and local levels. This includes emergency response planning, labeling of hazardous materials, equipment certification, evacuation mapping, and more.
How the Risk Management Center Helps:
The Risk Management Library provides a wealth of continually updated resources to help insureds keep up to speed on rapidly-changing rules.
3. Optimize employee hiring, onboarding, education, and training.
Help them communicate the importance of safety to every individual in their organization. Conduct EHS training on day 1 and periodically thereafter. Help ensure everyone is aware of, involved in, and has a voice in their organization’s EHS initiatives.
How the Risk Management Center Helps:
Training Track automates the employee training process. Schedule, track, and document training with a database of award-winning courses.
4. Set EHS goals and keep your team accountable for them.
Instead of merely reacting to accidents and resulting claims, help your clients get proactive in their commitment to workplace safety. Help them designate safety responsibilities to leaders within your organization; establish EHS targets, timelines, and strategies; and measure results against their objectives.
How the Risk Management Center Helps:
Give your insureds the tools to cultivate an organization-wide safety culture with a Behavior-Based Safety Program.
5. Conduct regular audits and loss control inspections.
Stay ahead of EHS risks and uncertainties. Help them inspect and test their systems for potential hazards, gaps, and areas in need of updating.
How the Risk Management Center Helps:
Audit Track gives your insureds the power to create custom audits, surveys, questionnaires, and self-assessments.
6. Maintain complete and thorough records.
In EHS, documentation is everything. Help your insureds capture information about every system, step, employee, incident, decision, and so on.
How the Risk Management Center Helps:
By providing one consolidated place to access all of this information electronically, help your insureds develop an efficient, well-documented safety program.
Ultimately, we’re talking about helping your insureds create a comprehensive EHS program and instilling a culture of safety throughout their organization. That may sound like a lot of work for your insureds. And that’s because it is—if you’re doing everything manually. And that’s where you can help. By providing your clients access to the Risk Management Center you make it easy to implement an EHS program that harnesses technology and best practices to maintain a safe and productive workplace.
The Value-Added Solution Brokers Need to Grow and Retain Their Insured Base
KPA’s Risk Management Center empowers your clients to proactively manage risk and mitigate claims, losses, and associated costs.
Whether your focus is property and casualty or employee benefits, Risk Management Center provides comprehensive tools for your clients to control and mitigate operational, regulatory, and compliance risks associated with their businesses.
Ready to see how you can transform your insureds’ workers’ comp costs, safety outcomes, and bottom line? Schedule a free evaluation with us.
