Employers need to constantly look at workers’ compensation as a tool to improve their business’s bottom line, and they certainly need to make an effort to keep their low rates over the long-term so that they can take advantage of some significant savings.

Here are four common mistakes made by employers that frequently deter their workers’ compensation savings:

1. Assuming that lower rates equate to lower costs.

Don’t make the faulty assumption that your cost will automatically go down just because your rates have been reduced. Workers’ compensation insurers use an experience modification factor to examine the actual losses incurred by the insured company and establish cost. The actual losses are compared to other industry-alike companies. If the insured company’s past losses are below average, then the insurer gives the company a credit rating lowering their premium, but an added surcharge is applied to the premium if the insured company’s past losses are above average.

2. Believing that employers have little control when it comes to the expense of workers’ compensation.

Employers know they’ve got to have workers’ compensation insurance. However, this acknowledgment shouldn’t lend to an employer thinking they’ve got to pay excessively for it; employers don’t and shouldn’t.
Cost reduction starts at the hiring process. Initiate effective interview techniques and background checks to help ensure the right people are hired for the right jobs. That said, there’s no way to completely eliminate the possibility of injuries in a workplace. Therefore, it’s equally important to have an effective return-to-work program in place to simultaneously assist injured workers return to work as soon as possible and reduce the cost of their claims.

3. Neglecting or de-emphasizing cost containment and injury management during low rate periods.

Safety should be an unyielding focus at all times. This will not only help a company reduce their claim numbers, but also keep their rates low over the long-term. Employers need to keep an eye on the issues that frequently impact the costs of claims, such as medical care costs and lost wages. Also, remember that open claims mean escalating costs and negative impacts to the company’s modification factor. Of course, this causes an increased cost for coverage.

4. Not making the association between cost containment and worker retention.

Studies have shown that fewer accidents occur among skilled workforces, but even skilled workers can have an accident. A large part of whether or not an injured skilled employee returns to work is based on how their employer responds to them during and after recovery. An important part of an employer’s response will be in having a return-to-work program that includes maintaining constant contact with all injured workers and their health care providers to monitor how they’re recovering and when and how they can get back to work as soon as possible. Skilled employees that are kept in the loop with a return to work program’s periodic phone calls about what workplace changes are occurring in their absence are more likely to return. On the other hand, skilled employees that feel forgotten, undervalued, and disconnected aren’t very likely to return.

The personal property of your home is covered under your homeowners insurance policy. So, if your personal belongings are ever stolen or destroyed in a fire, you have replacement coverage. Most of the time, you should have contents coverage of 50 to 75 percent of what the structure of your home is insured for. However, sometimes that’s not enough.

To make sure your contents coverage is properly estimated, it’s a good idea to conduct a household inventory. In the event of a loss, this inventory should help you to quickly determine the extent of the damage.

To create an inventory, make a list of all the different types of objects in each room of your house. Then to the side, write the current cost to replace those items. Next, calculate the value for each room, and add all of the rooms together to find the total value of your contents.

Here are some things to keep in mind when doing your home inventory.

• Don’t just estimate big-ticket items such as TV’s and computers; everything is important.
• When valuing items such as bed sheets and pillow cases, don’t forget to include the items that might be in a linen closet.
• Don’t forget to look outside. Outdoor grills, patio furniture, and lawn equipment are covered too.

When you are finished with your inventory be sure to do two things. First, compare the inventoried value with your current insurance policy. If you feel a need to adjust the contents coverage value to better match your inventory, contact your insurance agent immediately. Second, store your inventory in a safe place outside of your home, such as a safety deposit box.

Although it is tough to deal with a loss, having a household inventory can make it easier for you and the insurance carrier.

Accidents, traffic tickets, inflation adjustments—nothing will make your rate budge until you add or remove a vehicle or driver, or change your address.  ERIE Rate Lock give you peace of mind as well as a great rate that stays steady.

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With ERIE, you never have to sacrifice service for great rates.  In fact, 90% of our customers stay with ERIE year after year. And that’s no joke.

Call your local ERIE agent, and get a quote today.

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