Workers’ Compensation Coverage:

What an Agency should consider?

What is Workers’ Compensation Coverage?

Businesses are required by law in all fifty states to pay for the medical treatment and lost wages of employees who suffer job-related injuries or

illnesses. In order to avoid crippling expenses in this regard, companies purchase workers' compensation

insurance policies of one kind or another

What is Workers Compensation? (cont.)

Given the mandatory nature of workers' compensation coverage and the potential

expense involved, the cost of workers' compensation insurance policies is a

considerable concern for small business owners.

FACT: workers' compensation premiums stand as most companies' second-largest operating

expense, after payroll.

What is Workers Compensation? (cont.)

Small business owners have less control over the cost of workers' compensation

coverage than they do over health insurance costs

Types of Coverage for Workers’ Compensation

There are three basic methods available for employers to obtain the required workers' compensation protection:

1. State insurance funds

2. Private insurance

3. Self-insurance through insurance pools

Details about your agency

1. How many years have you been in business?

2. What insurer writes your agency currently?

3. What is your current annual premium and payroll?

4. How has your past 5 years of loss experience been and what is your current experience modification factor?

How to Choose an Insurer and keep cost down?

Agencies seeking workers' compensation insurance policies should seek out insurers with proactive claims adjusting policies.

Why?

The faster claims are handled, the less cost

incurred!

How to Choose an Insurer and keep cost down? (cont.)

Businesses should take steps to monitor all aspects of their work safety record and insurance coverage, and ensure that all subcontractors carry workers' comp coverage.

Why?

Eliminate the potential for losses….reduces costs to keep premiums reduced.

How to Choose an Insurer and keep cost down?

First and foremost, make the workplace as safe as possible!!

Agencies can reduce premiums by minimizing the number of claims made by their workforce. This requires the implementation of safety programs as well as safety committees who enforce such programs.

Group Self Insurance

Group self-insurance plans are worth consideration for small businesses with better-

than-average workplace safety records

Such plans work best when the companies involved are in the same or similar industries,

so that their level of risk is roughly equivalent

Group Self Insurance

Pennsylvania Home Care Association has endorsed the following approved self insurance group:

Pa Home Care and Human Services Workers’ Compensation Trust.

Group Self Insurance

Call today to see if your agency meets the guidelines to become a member and participate in the risk management philosophy which reduces cost and increases safety awareness in the workplace!