The Process is the Solution

Establishing a process to control workers’ comp claims should be the priority for every business.

Why? Workers’ compensation is the most manageable of all corporate insurance costs. In fact, it is a 60 – 70% controllable expense.

The processes each business implements to run its operation guarantees the future it will have. All organizations are perfectly designed to get the results they achieve. If you want different results, you must change the way you do things. All businesses share a past with an expectation for the future. The differentiator between companies that experience a successful outcome and those that do not is the process put in place to get there. This has specific relevance to workers’ compensation. A business can reduce costs and gain a competitive advantage by managing its workers’ compensation program as effectively as possible through a defined process.

Consider two competitors with similar operations who hire from the same labor pool and compensate their employees equally. How do you explain that one business has a perennially high experience modification of over 125%, while the other is consistently around 75%? The company with the lower mod rate is experiencing the positive future it wants by effectively implementing and managing their workers’ compensation risk management program through a defined process.

Implementing the right process is even more critical today because California businesses are experiencing increasing rates. The favorable competitive workers’ compensation market is a thing of the past. Higher rates mean more financial pain, as businesses absorb the cost while economic recovery is sluggish.

The challenge is to know where to focus time and energy, and what resources will provide the greatest benefit. Distinguishing between those outside influences that drive workers’ compensation costs (rates, system structure), which cannot be controlled, and the internal influences within an organization that are controllable (hiring, safety incentives, medical clinic partnerships, return-to-work programs, etc.), is the first step.

SullivanCurtisMonroe has a proven workers’ compensation best practices claims reduction and control process that has been honed over the past 25 years. It includes:

  • Employee Selection
  • Claims Evaluation
  • Safety Program Management
  • Accident Investigation
  • Occupational Care
  • Litigation Management
  • Safety Incentives
  • Utilization Review
  • Disability Management
  • Claims Administration

Businesses that embrace effective workers’ compensation loss prevention and control processes will realize a competitive advantage in their industry through a lower workers’ compensation cost structure, enhanced productivity and increased profit.


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