How you can screen for costly workers compensation insurance claims.
According to workers compensation experts, approximately 5% of claims account for 80% of workers compensation insurance costs. This means that about one out of fourteen claims will be major ones that end up costing you dearly. Oftentimes, employers are not able to tell which claims will end up being more extensive. As a result, they will treat major claims just like the others, missing out on opportunities where they could minimize their expenses. To help you identify costly workers comp claims, here are some of the signs that you should screen for.
- Look at Past Claims
One of the best ways to help you identify costly claims in the future is by studying your past claims. Experts recommend pulling your five most expensive workers compensation claims to date. Oftentimes, there are patterns in these claims that you can look for in future ones. For instance, you may find that certain injuries lead to more extensive claims. You may also find that the employee’s responsiveness predicts the extent of the claim. Typically, employees who are less cooperative tend to draw out the claims process or even sue, both of which drive up your insurance costs. By evaluating your past workers compensation claims, you will have an easier time profiling subsequent claims and identifying which ones require more effort to minimize costs.
- Evaluate the Injured Employee
Some employees will try to milk the system and will draw out the claims process longer than it needs to be. Oftentimes these are employees that are holding some type of grudge against the company or who have a track record of fraudulent behavior. This is why it’s important to profile the injured employee. For instance, you should speak to co-workers and friends to find out if the employee is harboring resentment against the company. You should also speak to past employers to find out if they have had workers comp issues with the employee in the past. If the employee proves themselves to be resentful or a fraudster, then you can anticipate their efforts to draw out the claim. When you know what’s coming, you can take steps to mitigate their attempts and keep your claim costs down.
This is how you can screen workers compensation insurance claims. Do you need further assistance with your commercial coverage needs? If so, then contact the experts at PMC Insurance Group. Our dedicated team is eager to help you with all your business insurance needs today.
