Workers' Comp Costs: How to Avoid Seven Costly Employer Mistakes From reduceyourworkerscomp.com


MANSFIELD, CT--(Marketwire - October 6, 2008) - Employers can dramatically reduce their workers' comp costs by avoiding seven key mistakes, according to www.reduceyourworkerscomp.com.

The site points to seven mistakes that drive up costs 20 percent to 50 percent:

1.  Hiring unqualified employees. Many employers fail to make sure new
    hires are qualified to safely perform the job they were hired for.
2.  Letting workers stay out longer than needed. If an employee is
    healed on January 15, he or she should be back to work January
    15 -- not Feb. 15 or June 15.
3.  Having too many employees out of work too long. Employees stay out
    of work when there are no post-injury procedures to bring them back
    to work quickly.
4.  Penny-wise, pound-foolish. Some employers won't spend a few hundred
    dollars to send managers responsible for workers' compensation to
    conferences and seminars where they could learn how to reduce workers'
    comp costs and possibly save millions. Or, they look for the least
    expensive claims administrator rather than the one that will provide
    the best quality claims handling.
5.  Lack of understanding. Management doesn't understand the real cost
    of workers' comp. With a $15,000 claim, if the profit margin is 8%,
    it takes $187,500 to replace it on the bottom line. Management may
    not know they can direct medical care in those states where it is
    permissible. Lack of understanding by adjusters about medical
    terminology can be costly. Injured employees may think an insurance
    company is paying the claim completely, with no impact on the
    employer.
6.  Failure to communicate with injured employees. Attorneys, friends,
    and other injured employees communicate with injured employees.
    Employers must make sure they get your message first -- starting
    before an injury even occurs.
7.  Failure to monitor or coordinate medical care. No one is making sure
    a reasonable treatment plan is in place. For example, as long as any
    doctor says an employee cannot work, no one takes proactive steps to
    refute that position.

See www.reduceyourworkerscomp.com/lower-reduce-workers-comp-costs.php.

"Workers' compensation is not a fixed cost of doing business as many CEOs, CFOs and business owners think. It is a controllable expense," says site creator Rebecca Shafer.

The site incorporates her 20-plus years of comp experience along with the practical insights of other top experts.

Contact Information: Contacts: Henry Stimpson Stimpson Communications 508-647-0705 HStimpson@StimpsonCommunications.com Rebecca Shafer Amaxx 660-553-6604 Info@WorkersCompKit.com