UNDERSTANDING EXPERIENCE MODIFICATION RATINGS FOR WORKERS’ COMPENSATION

MOD EXPERIENCE

A quick guide to understanding the NCCI Mod Rating worksheets.

Experience Modification Rating (EMR) in a Nutshell:

The EMR is a number used to adjust insurance premiums, based on a company’s past workplace injury claims.

The Experience Modification Worksheet:

The NCCI Experience Modification Worksheet is a tool used by the National Council on Compensation Insurance (NCCI) to calculate an experience modification factor (EMF) for workers' compensation insurance premiums. The EMF reflects a business's claims history compared to other businesses in the same industry. It considers factors such as the frequency and severity of workplace injuries and illnesses. A lower EMF generally indicates better safety practices and can lead to lower insurance premiums, while a higher EMF may result in higher premiums.

What's in the Worksheet:

• Basic Info: Company details like name, address, and policy number.

• Policy Period: The timeframe for calculating the EMR, usually spanning three years.

• Claims Data: Details of each workers’ comp claim, including date, type, and amount paid.

• Expected Losses: Predicted losses based on industry standards.

  Calculating Expected Losses Formula

  Expected Losses = Payroll Divided by 100 x ELR column

• EMR Calculation: Formula comparing actual losses to expected losses.

• Impact on Premium: EMR affects how much a company pays for insurance.

Using the Worksheet:

• Know Your Numbers: Understand your claims history and EMR to manage costs.

• Spotting Errors: Check for inaccuracies that could affect your EMR and premiums.

• Appeal if Needed: If you think there's a mistake, there's a process for disputing it.

NCCI Mord Worksheet Correction:

To apply for a correction to the NCCI Experience Modification Worksheet, a company typically needs to follow these steps:

1. Review the Worksheet: First, review the NCCI Experience Modification Worksheet provided by your insurance carrier or obtained directly from NCCI. Identify any discrepancies or errors in the data used to calculate your experience modification factor (EMF).

2. Gather Documentation: Collect all relevant documentation that supports your claim for correction. This might include payroll records, claim information, and any other relevant documents that demonstrate inaccuracies in the data used for the calculation.

3. Contact your Insurance Carrier: Reach out to your insurance carrier or agent to discuss the discrepancies you've identified and express your intention to apply for a correction to the EMF. Provide them with the documentation supporting your claim.

4. Submit a Request to NCCI: If your insurance carrier agrees that there are errors in the calculation, they may submit a request for correction to NCCI on your behalf. Alternatively, you may be required to submit the request directly to NCCI, depending on your specific circumstances.

5. Follow Up: Keep in touch with your insurance carrier and NCCI to monitor the progress of your request for correction. Be prepared to provide any additional information or documentation requested during the review process.

6. Review the Updated Worksheet: Once NCCI processes your request, review the updated Experience Modification Worksheet to ensure that the corrections have been made accurately.

Why It's Important:

Understanding your EMR and worksheet helps manage costs and promote workplace safety.

In a nutshell, mastering your EMR and the worksheet can lead to safer workplaces and better insurance rates for your business.

The Power of Prompt Claims Reporting: A Cornerstone for Cost Savings and Peace of Mind

Claim Reporting

A quick overview on why reporting workers’ compensation claims on time is so important.

In the ever-evolving landscape of insurance, businesses face myriad challenges that can impact their bottom line. One crucial aspect that often goes overlooked is the importance of prompt claims reporting. Beyond being a mere administrative task, timely reporting holds the key to minimizing the cost of a claim, reducing friction with the insurance company, preserving employee morale, and maintaining compliance.

Minimizing the Cost of the Claim:

One of the most significant advantages of prompt claims reporting lies in its ability to minimize the overall cost of a claim. Time is of the essence, and delays in reporting can lead to increased damages, additional expenses, and prolonged downtime. By reporting a claim promptly, businesses enable insurance adjusters to swiftly assess the situation, gather necessary information, and expedite the claims process. This proactive approach helps in controlling costs, preventing further damage, and ensuring a quicker resolution.

Reducing Friction with the Insurance Company:

A transparent and communicative relationship with your insurance company is essential. Timely reporting fosters trust and collaboration between businesses and insurers. When insurers receive prompt and accurate information, they can more efficiently process claims, leading to faster settlements. This, in turn, reduces friction, as both parties are working together towards a common goal – resolving the claim swiftly and fairly. Clear communication is the cornerstone of a healthy insurance partnership.

Preserving Employee Morale:

The aftermath of an incident can be stressful for employees, affecting their morale and productivity. Timely claims reporting demonstrates an organization's commitment to its workforce. When employees see that their well-being is a priority and that their employer is taking swift action to address issues, it fosters a sense of security and trust. This positive approach can contribute to maintaining a motivated and engaged workforce even in challenging times.

Maintaining Compliance:

Compliance with insurance policies and regulations is non-negotiable for businesses. Failing to report claims promptly may not only lead to delays in settlements but also result in non-compliance issues. By adhering to reporting timelines, businesses ensure they are meeting the contractual obligations outlined in their insurance policies. This not only protects the organization from legal consequences but also ensures a smoother claims process within the bounds of the agreed-upon terms.

In the complex world of insurance, the significance of prompt claims reporting cannot be overstated. It is not merely a bureaucratic requirement; rather, it serves as a strategic tool for businesses to minimize costs, build strong relationships with insurers, boost employee morale, and stay in compliance with industry regulations. By making prompt claims reporting a priority, businesses can navigate the unpredictable waters of risk management with confidence, ensuring a quicker recovery and sustained success in the face of unforeseen challenges.

Mastering Workers' Compensation Costs: 5 Quick Tips for Staffing Companies

Work Comp TIPS

5 Quick Tips for Staffing Companies

Implementing these tips can help your staffing company create a safer work environment, reduce the frequency and severity of workers' compensation claims, and ultimately save money on insurance costs.

Implement Safety Programs:

Establishing and enforcing comprehensive safety programs can significantly reduce workplace accidents and injuries. A safe work environment not only protects employees but also lowers the risk of workers' compensation claims. Regular safety training, hazard assessments, and the use of personal protective equipment are essential components of an effective safety program.

Risk Management Strategies:

Engage in proactive risk management by identifying potential workplace hazards and developing strategies to mitigate them. Conduct regular safety audits, address any identified risks promptly, and keep detailed records of these efforts. Insurers often reward companies with strong risk management practices by offering lower premiums.

Return-to-Work Programs:

Implementing a structured return-to-work program can help injured employees get back to work sooner. This reduces the duration of workers' compensation claims and associated costs. Offering modified or alternative duties for injured workers, when feasible, not only supports their recovery but also minimizes the financial impact on the staffing company.

Employee Training and Communication:

Educate employees on the importance of safety, injury prevention, and prompt reporting of any incidents. Clear communication channels regarding safety protocols and reporting procedures can help prevent accidents and ensure that potential issues are addressed promptly. Well-informed employees contribute to a safer work environment, reducing the likelihood of costly claims.

Annual Insurance Coverage Review with Your Agent:

Collaborate with your insurance agent on an annual basis to review your workers' compensation insurance coverage. As the staffing industry evolves and your business grows, the risk landscape may change. Regularly assessing your coverage ensures that it aligns with your current needs and helps identify potential areas for improvement or cost savings. Your insurance agent can provide valuable insights, recommend adjustments, and negotiate on your behalf, optimizing your coverage while keeping costs in check. Regular reviews also allow you to stay informed about industry trends and changes in regulations that may impact your workers' compensation insurance requirements. This proactive approach helps maintain an optimal balance between coverage and cost, ensuring your staffing company is well-protected.

Should your staffing company require assistance with workers' compensation or risk management, please reach out to our team at Akker, LLC. We welcome the opportunity to collaborate with you.

Contact us - info@akkerins.com

#staffing #staffinginsurance #safety #staffingworkerscompensation #workerscompensation #staffingsafety

Navigating Changes in Automatic Gratuities: Insights for Hospitality Staffing Agencies

Hospitality Staffing

How Automatic Gratuities can effect your workers compensation cost.

For staffing companies operating in the dynamic realm of hospitality, where gratuities form a vital part of employee income, recent developments are causing ripples of change. Automatic gratuities, a customary practice in restaurants and hospitality establishments, are undergoing transformations that could significantly impact not only how tips are managed but also the realm of workers' compensation premiums. In this article, we'll delve into this evolving landscape and offer insights tailored to staffing agencies in the hospitality sector.

Decoding Automatic Gratuities:

Automatic gratuities, commonly known as "auto-grats," have gained prevalence in the hospitality industry. These predetermined tips are directly added to customer bills, especially for larger groups or special occasions, ensuring equitable compensation for the workforce. The goal is to mitigate instances of inadequate tipping or omission of gratuities altogether.

A Changing Paradigm:

Yet, the paradigm of automatic gratuities is shifting, leading to changes that demand attention. Historically categorized as regular income, auto-grats are now being viewed differently, potentially impacting workers' compensation premiums – a crucial consideration for staffing agencies specializing in hospitality placements.

Influence on Workers' Compensation Premiums:

Workers' compensation premiums are fees paid by businesses to secure insurance coverage for employees who might sustain workplace injuries. These premiums are influenced by several factors, including industry classification, payroll size, and the frequency of compensation claims.

The evolving status of automatic gratuities has the potential to disrupt this equation. If auto-grats are reclassified as service charges rather than conventional wages, the payroll amount considered for premium calculation could undergo adjustment. Consequently, this might ripple through the overall cost of workers' compensation coverage for staffing agencies and their clientele.

Anticipating Opportunities and Challenges:

The evolving perspective on automatic gratuities brings forth a series of opportunities and challenges specific to staffing agencies. On one hand, agencies might need to navigate intricate payroll classifications and the potential for augmented workers' comp premiums. On the other hand, this change could catalyze a reevaluation of compensation models, potentially leading to elevated morale among the workforce and an enhanced standard of service.

Adapting Strategically:

As staffing agencies in hospitality embrace these shifts, strategic adaptability becomes paramount. The potential impact on workers' compensation premiums underscores the importance of reevaluating payroll processes and, potentially, seeking expert advice to navigate complexities. Moreover, fostering transparent communication with both placed employees and partnering establishments about tipping guidelines and any resultant adjustments is critical for fostering a harmonious working environment.

For staffing agencies specializing in hospitality placements, the evolving landscape of automatic gratuities extends beyond mere operational alterations. Keeping a pulse on these changes and their potential implications for workers' compensation premiums is vital. By staying informed, adapting nimbly, and prioritizing equitable treatment of staff, agencies can effectively navigate these shifts, continuing to provide exceptional staffing solutions that benefit both clients and employees within the hospitality sector.

#staffing #staffinginsurance #insurance #workerscompensation #staffingworkerscompensation

Unraveling the Mysteries: How Workers' Compensation Carriers Determine Treatment Costs and Settlements

Work Comp CLAIM

How Workers' Compensation Carriers Determine Treatment Costs and Settlements?

Workers' compensation insurance provides essential coverage for employees who suffer work-related injuries or illnesses. When an employee files a workers' compensation claim, one of the critical aspects is determining the cost of treatment and potential settlements. However, this process can often seem intricate and mysterious. In this blog, we'll shed light on how workers' compensation carriers calculate treatment costs and settlements based on the type of claim.

Assessing the Severity of the Injury:

The first step in determining the cost of treatment and potential settlements is assessing the severity of the injury or illness. Workers' compensation carriers rely on medical reports and evaluations from healthcare professionals to understand the extent of the harm and the necessary treatment. The more severe the injury, the higher the cost of treatment and potential compensation.

Medical Treatment Costs:

Once the severity of the injury is established, the workers' compensation carrier evaluates the medical treatment costs. This includes hospitalization, surgeries, medications, physical therapy, and any other medical expenses directly related to the injury or illness. The carrier may have established fee schedules or reimbursement rates for specific medical procedures to ensure reasonable costs.

Lost Wages and Disability Benefits:

In addition to medical treatment costs, workers' compensation carriers consider the impact of the injury on the employee's ability to work. If the injury results in a temporary or permanent disability that prevents the employee from working or reduces their earning capacity, the carrier will factor in lost wages and disability benefits. The level of disability and its effect on the employee's ability to earn will influence the amount of compensation provided.

Type of Workers' Compensation Claim:

Different types of workers' compensation claims can have varying implications for treatment costs and settlements. Here are some common types:
a. Medical-Only Claims: These claims involve minor injuries that require limited medical treatment, such as minor cuts or bruises. The cost of treatment is generally lower, and the employee may not receive a settlement beyond medical expenses.
b. Temporary Total Disability Claims: These claims arise when an employee's injuries temporarily prevent them from working. The carrier covers medical expenses and provides wage replacement benefits until the employee can return to work.
c. Permanent Total Disability Claims: In cases of severe and permanent injuries that leave the employee unable to work, the carrier will provide long-term disability benefits and cover ongoing medical expenses.
d. Permanent Partial Disability Claims: These claims involve injuries that result in permanent impairment but do not render the employee totally disabled. The settlement amount is based on the extent of impairment and its effect on future earning capacity.

Negotiations and Legal Factors:

In some instances, the injured employee and the workers' compensation carrier may not agree on the settlement amount or the extent of the injury's impact on earning capacity. This can lead to negotiations or even legal proceedings to resolve the matter. In such cases, a judge or an arbitrator may be involved in determining the final settlement amount.

Determining the cost of treatment and settlements in workers' compensation insurance claims is a complex process that involves evaluating the severity of the injury, medical treatment costs, lost wages, and the type of claim filed. Workers' compensation carriers strive to provide fair compensation that covers the injured employee's medical expenses and lost income while ensuring the sustainability of the insurance system. Through transparency and a thorough understanding of the process, employees and employers alike can navigate the workers' compensation system with greater confidence.

Understanding Staffing Work Comp Waiver of Subrogation and Alternate Employer Endorsement

Workers’ Compensation

Waiver of Subrogation vs. Alternate Employer Endorsement

In the dynamic world of staffing, it is essential to understand the nuances of insurance and workers' compensation to protect both the staffing company and its clients. Two critical endorsements that often arise in staffing agreements are the Work Comp Waiver of Subrogation and Alternate Employer Endorsement. In this blog, we will delve into the significance of these endorsements, why clients are requesting them, and how they provide protection for the staffing company and their end client.

Work Comp Waiver of Subrogation:

The Work Comp Waiver of Subrogation is a contractual provision that relinquishes the staffing company's right to seek reimbursement from a third party for damages or injuries covered under workers' compensation insurance. Instead, the staffing company and their insurance carrier solely bear the financial responsibility.

Why clients ask for this endorsement:

a. Simplifies legal processes: By including a Work Comp Waiver of Subrogation, clients can avoid potential litigation or disputes between the staffing company, the client's insurance carrier, and the third party involved. It streamlines the legal process by assigning responsibility solely to the staffing company.

b. Minimizes delays and expenses: In case of a workplace injury or accident, clients can expedite the claims process as the staffing company's insurance carrier handles all the necessary documentation and settlements. This helps avoid lengthy legal battles, ultimately reducing costs and delays for the end client.

Alternate Employer Endorsement:

The Alternate Employer Endorsement is designed to protect both the staffing company and their clients when the employees are assigned to work at a client's premises. This endorsement adds the client as an "alternate employer" to the staffing company's workers' compensation policy.

Why clients ask for this endorsement:

a. Comprehensive coverage: The Alternate Employer Endorsement ensures that the staffing company's workers' compensation insurance extends coverage to employees when they work at the client's location. It safeguards the end client against liability for workplace injuries or accidents that occur during the staffing company's employees' assignment.

b. Cost and risk allocation: By including the Alternate Employer Endorsement, clients can transfer a portion of the workers' compensation insurance burden to the staffing company. This shift in responsibility helps protect the client's bottom line while maintaining a productive and secure working environment.

In the realm of staffing insurance and workers' compensation, the inclusion of specific endorsements in agreements is crucial for protecting the interests of all parties involved. The Work Comp Waiver of Subrogation and Alternate Employer Endorsement are two such endorsements that clients frequently request to ensure their financial well-being and mitigate potential liabilities. By understanding the significance of these endorsements and their implications, staffing companies can navigate contractual negotiations more effectively, build stronger client relationships, and demonstrate their commitment to comprehensive risk management.

Exploring Workers Compensation Insurance: Guarantee Cost vs. Large Deductible

Guarantee Cost vs. Large Deductible

The financial differences for Guarantee cost vs. large deductible staffing workers compensation insurance.

Protecting employees and managing workplace risks is a crucial priority for every responsible business owner. Workers compensation insurance plays a significant role in ensuring the well-being of employees and safeguarding the financial stability of a company. When it comes to workers compensation insurance, two common options are guarantee cost and large deductible policies. In this blog, we will delve into the differences between these two types of insurance and discuss their respective benefits and financial implications.

1. Guarantee Cost Workers Compensation Insurance: Guarantee cost workers compensation insurance is the traditional and most straightforward option. Under this policy, the insurance carrier assumes the responsibility of compensating injured workers, regardless of the claim's cost. Here are some key benefits and considerations of guarantee cost insurance:

Benefits: a. Predictable Budgeting: With guarantee cost insurance, employers pay a fixed premium based on the projected payroll and risk associated with their industry. This allows for more accurate budgeting and financial planning. b. Lower Initial Costs: Guarantee cost policies generally have lower upfront costs, making it an attractive option for businesses with limited cash flow or smaller budgets. c. Minimal Claims Management: In this insurance model, the insurance carrier handles all aspects of claims management, including claim investigation, settlement negotiations, and payments.

Financial Considerations: a. Higher Premiums: Guarantee cost policies often come with higher premium rates since the insurance carrier takes on the full risk of compensating injured workers. b. Limited Control Over Claims: Employers have limited influence over claim management decisions, as the insurance carrier handles all aspects of the process. c. Potential for Overpayment: In some cases, employers may end up paying higher premiums than the actual claims costs, resulting in potential overpayment.

1. Large Deductible Workers Compensation Insurance: Large deductible workers compensation insurance provides employers with more control and flexibility over claims management and offers potential cost savings. Here are the benefits and financial implications of this insurance option:

Benefits: a. Increased Control: Employers have more say in managing claims, including the ability to choose adjusters, influence settlement negotiations, and implement loss control strategies to prevent future incidents. b. Cash Flow Advantage: Large deductible policies typically have lower upfront premiums than guarantee cost policies. This enables businesses to allocate resources to other areas of operation and potentially earn interest on the retained funds. c. Potential for Savings: If claims are managed effectively and kept below the deductible limit, employers can realize significant cost savings compared to guarantee cost policies.

Financial Considerations: a. Higher Deductible Obligations: Employers are responsible for paying a predetermined deductible amount before the insurance carrier assumes any liability for claims. This means potential higher financial exposure in the event of an accident. b. Cash Flow Risks: While large deductible policies offer cash flow advantages, they require businesses to have sufficient reserves to cover potential claims within the deductible limit. c. Administrative Responsibilities: Employers assume greater administrative responsibilities, such as claim management, reporting, and legal proceedings, which may require additional resources and expertise.

When considering workers compensation insurance, businesses must weigh the benefits and financial implications of guarantee cost and large deductible policies. Guarantee cost insurance offers predictability but may result in higher premiums, while large deductible policies provide control and potential cost savings at the expense of higher deductible obligations and increased administrative responsibilities. It is essential for businesses to evaluate their risk tolerance, financial capabilities, and claims management preferences to determine the most suitable option for their specific needs. Consulting with an experienced insurance professional can provide valuable guidance in making an informed decision.

Remember, the choice between guarantee cost and large deductible workers compensation insurance ultimately depends on the unique circumstances and goals of your business.

Staffing Workers' Compensation Insurance: Unlocking the Benefits of the Voluntary Market

VOLUNTARY MARKET

The benefits of voluntary market vs. the risk pool for staffing workers’ compensation

Workers' compensation insurance is a crucial aspect of protecting both employees and employers in the event of workplace injuries or illnesses. For staffing companies, navigating the realm of workers' compensation insurance can be complex, especially when deciding between the state risk pool and the voluntary market. In this article, we will explore the key differences between the two options and highlight the financial benefits of choosing the voluntary market over the risk pool. By understanding these advantages, staffing companies can make informed decisions about their insurance coverage, potentially saving significant costs in the process.

State Risk Pool vs. Voluntary Market:

State Risk Pool: The state risk pool, also known as the assigned risk pool or the residual market, is designed to provide coverage for high-risk employers who may struggle to find insurance in the voluntary market. Staffing companies operating in high-risk industries or with a history of frequent claims often find themselves in this pool. While the risk pool serves as a safety net, it comes with certain drawbacks.

Voluntary Market: The voluntary market, on the other hand, comprises insurance carriers that are actively seeking to underwrite workers' compensation policies for employers. These carriers have more flexibility in setting rates and coverage options based on their risk assessments. Staffing companies that can demonstrate a commitment to safety measures and a positive claims history may find it advantageous to enter the voluntary market.

Financial Benefits of the Voluntary Market:

1.     Competitive Pricing: In the voluntary market, insurance carriers have the ability to compete for business. This competition can lead to lower premiums, as carriers strive to offer attractive rates to win over employers. Staffing companies can take advantage of this market dynamic by obtaining quotes from multiple carriers and negotiating for more favorable pricing based on their risk profile.

2.     Customizable Coverage: Unlike the risk pool, which offers limited coverage options, the voluntary market provides greater flexibility in tailoring workers' compensation policies to meet specific needs. Staffing companies can work with carriers to create comprehensive coverage plans that align with their unique business requirements. This customization allows for more accurate pricing and ensures that companies are not paying for unnecessary coverage.

Why Staffing Companies Should Consider Leaving the Risk Pool:

1.     Improved Cash Flow: The risk pool often imposes higher premiums to compensate for the inherent risk associated with participating employers. By transitioning to the voluntary market, staffing companies can potentially reduce their premium costs, resulting in improved cash flow. This financial flexibility enables companies to invest in growth, hire additional staff, or allocate resources to other crucial areas of their business.

2.     Enhanced Risk Management: Moving to the voluntary market provides an opportunity for staffing companies to engage in proactive risk management. Insurance carriers in the voluntary market often offer valuable resources, such as safety training programs and loss control services, to help companies mitigate risks and reduce the likelihood of workplace accidents. By actively addressing risk factors, staffing companies can further lower their insurance costs.

The Overcharging Tendency of Risk Pools:

One of the significant drawbacks of the risk pool is the tendency to overcharge employers for workers' compensation insurance. Since the risk pool caters to high-risk employers, premiums are typically higher to offset potential claims. However, many staffing companies find themselves paying more than their fair share due to the generalized approach taken by risk pool pricing. By transitioning to the voluntary market, companies can benefit from more accurate pricing based on their individual risk profiles, potentially saving substantial amounts of money.

Staffing companies operating in the state risk pool for workers' compensation insurance should carefully evaluate the advantages of transitioning to the voluntary market. The financial benefits, including competitive pricing, customizable coverage, improved cash flow, and enhanced risk management, make the voluntary market an attractive alternative.

Exploring the Financial Benefits of $0 Down Pay-as-You-Go Workers' Compensation Insurance for Staffing Companies

$0 DOWN PAY-GO Work COMPENSATION

Exploring the Financial Benefits of $0 Down Pay-as-You-Go Workers' Compensation Insurance for Staffing Companies

Running a staffing company comes with its fair share of responsibilities, and one crucial aspect is ensuring the safety and well-being of your employees. Workers' compensation insurance is a vital component of protecting your workforce and your business from the financial risks associated with workplace injuries. In recent years, a new type of policy has gained popularity among staffing companies: $0 down pay-as-you-go workers' compensation insurance. In this blog post, we'll compare this innovative insurance option with the traditional 10% down payment and 9-installment model, highlighting the financial benefits and policy audit advantages it offers.

1. Understanding $0 Down Pay-as-You-Go Workers' Compensation Insurance: With the traditional workers' compensation insurance model, employers typically pay a significant upfront premium (around 10% of the estimated annual premium) and then make nine monthly installments throughout the policy year. However, $0 down pay-as-you-go insurance offers an alternative payment structure. Instead of a lump sum payment, employers pay insurance premiums in sync with their actual payroll, usually on a monthly basis.

2. Financial Benefits of $0 Down Pay-as-You-Go Insurance: a. Improved Cash Flow: For staffing companies, maintaining a healthy cash flow is crucial. By eliminating the need for a large upfront payment, $0 down pay-as-you-go insurance provides immediate relief to your business's financial resources, allowing you to allocate funds to other operational areas or investments.

b. Accuracy in Premium Payments: The pay-as-you-go model bases premiums on actual payroll data. This approach ensures that you only pay for the insurance coverage you need, avoiding overestimations or underestimations that can occur with traditional workers' compensation policies. It eliminates the need for annual audits and related premium adjustments, as premiums are calculated in real-time, reducing the chances of overpaying or owing a significant balance at the end of the policy term.

c. Reduced Risk and Liability: With the traditional model, inaccurate estimates of annual payroll can result in penalties or unexpected premiums during audits. In contrast, pay-as-you-go insurance minimizes the risk of underpaying or overpaying premiums. This accuracy allows for better financial planning and reduces the potential for negative surprises during audits.

1. Policy Audit Benefits: a. Streamlined Audits: One of the primary advantages of the pay-as-you-go model is the elimination or significant reduction of audits at the end of the policy term. By paying premiums based on actual payroll, staffing companies can avoid lengthy and complicated audits, saving valuable time and resources.

b. Increased Efficiency: Traditional workers' compensation policies often require employers to devote significant effort to gather and provide documentation during audits. With pay-as-you-go insurance, audits become less cumbersome, as the real-time premium calculations align with accurate payroll records, making the process more efficient and less prone to errors.

c. Avoiding Surprises: By ensuring accurate premium payments throughout the year, pay-as-you-go insurance reduces the likelihood of sudden premium adjustments during audits. This predictability allows staffing companies to have better financial control and avoid unexpected financial burdens.

For staffing companies seeking more flexible payment options and accurate premium calculations, $0 down pay-as-you-go workers' compensation insurance is a game-changer. The financial benefits, including improved cash flow, precise premium payments, and reduced audit complexities, make this insurance option an attractive choice for businesses looking to streamline their workers' compensation processes. By embracing this innovative approach, staffing companies can better protect their employees, reduce financial risks, and focus on the core aspects of their business operations.

Navigating Workers' Compensation Insurance: The Impact of One Large Claim and Frequency of Claims

Large Claim vs. Frequency

Navigating Workers' Compensation Insurance: The Impact of One Large Claim and Frequency of Claims

Workers' compensation insurance is essential for employers as it helps them protect their business from the financial liabilities associated with workplace injuries and illnesses. However, not all workers' compensation claims are the same. In this article, we'll explore the difference between one large claim and frequency of claims and how they can impact your workers' compensation insurance.

One Large Claim:

A single, large workers' compensation insurance claim can be costly for an employer. This is because it involves a significant payout, which can quickly add up to substantial expenses. A severe injury or illness that results in a large claim can also impact an employer's workers' compensation insurance rates, as insurance companies will consider it a high-risk factor when calculating premiums.

When an insurance company is evaluating an employer's claim history, they will pay special attention to the cost of the claim. The higher the cost of the claim, the more likely it is to impact the employer's workers' compensation insurance rates. If the cost of the claim exceeds a certain threshold, the insurance company may also consider canceling the policy or not renewing it.

Frequency of Claims:

The frequency of workers' compensation insurance claims is another factor that can affect insurance premiums. Employers who have multiple small claims or a high frequency of claims may also experience an increase in their workers' compensation insurance rates.

Insurance companies consider the frequency of claims as an indication of an employer's safety culture. Employers who do not prioritize safety or who have poor safety measures in place may experience a higher frequency of claims. Insurance companies may view these employers as higher risk and adjust their premiums accordingly.

What Insurance Carriers Look at When Quoting New or Renewal of Workers' Compensation:

When insurance carriers are quoting new workers' compensation policies or renewals, they will take a close look at an employer's claims history. Insurance companies will review the number of claims an employer has had in the past and the severity of those claims. They will also consider any safety measures that an employer has in place to prevent future accidents.

Insurance companies may also consider an employer's industry when calculating premiums. Certain industries, such as construction or manufacturing, may be considered high-risk industries, and insurance rates may be higher than industries with lower risks.

Conclusion:

In conclusion, both one large claim and the frequency of claims can impact an employer's workers' compensation insurance rates. Employers can minimize the impact of these factors by prioritizing safety measures in the workplace and ensuring that their employees are properly trained to prevent accidents. When it comes to renewals or new workers' compensation quotes, it is crucial for employers to maintain a good claims history, as this can impact their insurance premiums. By taking steps to prevent workplace accidents, employers can keep their workers safe and maintain affordable workers' compensation insurance rates.

Safe Lifting Techniques: A Step-by-Step Guide for Handling Heavy Objects on the Job

Lifting techniques

A Step-by-Step Guide for Handling Heavy Objects on the Job

Lifting heavy objects on the job is a common occurrence in many workplaces. However, improper lifting techniques can result in serious injuries, including strains, sprains, and even spinal cord injuries. Therefore, it is crucial to use proper lifting procedures when handling heavy objects. In this blog post, we will discuss the proper procedures for lifting heavy objects and provide a step-by-step process for lifting objects on the job.

Proper Procedures for Lifting Heavy Objects

1.         Assess the Weight and Size of the Object: Before attempting to lift an object, it is important to assess its weight and size. If the object is too heavy or too large, it is best to seek assistance from a coworker or use mechanical aids such as a forklift, crane or dolly.

2.         Plan the Lift: Plan the lift by determining the safest and most efficient way to move the object. Identify the best path to transport the object and ensure that the destination is free from obstacles.

3.         Clear the Path: Ensure that the path is clear of debris and tripping hazards before beginning the lift.

4.         Warm Up: Stretch and warm up before lifting to reduce the risk of injury.

5.         Get a Good Grip: Ensure that you have a good grip on the object before lifting. Use gloves if necessary to improve your grip.

6.         Bend Your Knees: Bend your knees and squat down to the level of the object.

7.         Keep Your Back Straight: Keep your back straight and avoid bending at the waist. Tighten your core muscles to maintain proper alignment.

8.         Lift with Your Legs: Use your leg muscles to lift the object, not your back muscles.

9.         Hold the Object Close to Your Body: Hold the object close to your body to reduce the strain on your back.

10.      Walk Slowly and Carefully: Walk slowly and carefully, ensuring that you have a clear path to your destination.

Step-by-Step Process for Lifting Objects on the Job

Step 1: Assess the weight and size of the object.

Step 2: Plan the lift by determining the safest and most efficient way to move the object.

Step 3: Clear the path of debris and tripping hazards.

Step 4: Warm up by stretching and loosening up your muscles.

Step 5: Get a good grip on the object, using gloves if necessary.

Step 6: Squat down to the level of the object, bending your knees and keeping your back straight.

Step 7: Tighten your core muscles to maintain proper alignment.

Step 8: Use your leg muscles to lift the object, not your back muscles.

Step 9: Hold the object close to your body to reduce the strain on your back.

Step 10: Walk slowly and carefully, ensuring that you have a clear path to your destination.

Conclusion

Lifting heavy objects can be dangerous if proper procedures are not followed. By assessing the weight and size of the object, planning the lift, clearing the path, warming up, getting a good grip, bending your knees, keeping your back straight, lifting with your legs, holding the object close to your body, and walking slowly and carefully, you can reduce the risk of injury and safely handle heavy objects on the job. Remember, if an object is too heavy or too large, always seek assistance or use mechanical aids to move the object safely.

The Importance of Timely Submission of Workers' Compensation Claims for Staffing Companies

Claim Submission

The Importance of Timely Submission of Workers' Compensation Claims for Staffing Companies

Staffing companies often rely on workers' compensation insurance to protect both their employees and their business in case of workplace accidents. Workers' compensation claims can help cover the medical costs and lost wages that an injured employee may incur. However, it's essential for staffing companies to submit workers' compensation claims to their insurance company promptly. In this blog, we'll discuss why staffing companies should submit workers' compensation claims within 24-48 hours of the accident and the benefits of doing so from an insurance adjuster's perspective.

Why should staffing companies submit workers' compensation claims within 24-48 hours?

Timely reporting ensures compliance with state laws: Each state has its own laws regarding workers' compensation, including deadlines for reporting workplace accidents. Failing to report a workplace accident within the specified time frame could result in penalties or the denial of the claim. By submitting claims promptly, staffing companies can ensure they are following state laws and regulations.

Helps injured employees get timely care: A timely workers' compensation claim submission can help injured employees get the medical care they need as soon as possible. Many workers' compensation insurance policies require that employees seek medical treatment from a designated medical provider. By submitting the claim quickly, the employee can get in touch with the designated medical provider, and the medical costs can be covered under the policy.

Supports the investigation process: Submitting a workers' compensation claim within 24-48 hours of the accident helps the insurance adjuster investigate the incident promptly. The adjuster can gather evidence, interview witnesses, and assess the severity of the injury more accurately when the claim is submitted promptly. This helps the adjuster determine the validity of the claim and helps expedite the claims process.

Benefits of timely submission of workers' compensation claims from an insurance adjuster's perspective:

Accurate documentation: Timely submission of a workers' compensation claim helps the adjuster obtain accurate documentation of the accident. This includes statements from the injured employee, witnesses, and the employer. With accurate documentation, the adjuster can better assess the extent of the employee's injuries and ensure that the claim is handled appropriately.

Cost-effective claims handling: Timely submission of workers' compensation claims can help keep the costs of the claim down. By submitting the claim promptly, the adjuster can investigate the incident quickly and identify any potential fraud or exaggeration of the claim. This can help prevent unnecessary medical treatments and reduce overall claim costs.

Timely claims resolution: Timely submission of a workers' compensation claim can help ensure a speedy claims resolution. The adjuster can work with the employer and the injured employee to determine the best course of action and ensure that the employee receives the necessary medical care and benefits. This can help reduce the time and resources needed to handle the claim and prevent any delays in the employee's recovery process.

In conclusion, staffing companies should make sure to submit workers' compensation claims to their insurance company within 24-48 hours of the accident. By doing so, they ensure compliance with state laws, help injured employees get timely care, and support the investigation process. From an insurance adjuster's perspective, timely submission of workers' compensation claims can lead to accurate documentation, cost-effective claims handling, and timely claims resolution. Overall, submitting workers' compensation claims promptly benefits both the staffing company and the injured employee, making it a crucial step in the claims process.

NCCI Mod worksheet for Staffing Companies

NCCI MOD

How does the NCCI Mod impact Staffing Companies?

As a staffing company, your employees are your most valuable asset. Ensuring their safety and well-being is crucial not just from a human standpoint, but also from a financial perspective. Workers' compensation costs can be a significant expense for staffing companies, and understanding the NCCI Mod worksheet is critical to managing those costs.

What is the NCCI Mod Worksheet?

The National Council on Compensation Insurance (NCCI) is a non-profit organization that collects data, analyzes industry trends, and provides workers' compensation insurance rating and filing services in over 38 states. The NCCI Mod worksheet is a calculation used by insurance companies to determine the experience modification factor (also known as "mod" or "EMR") for a particular company.

The mod is a measure of how a company's actual losses compare to expected losses for its industry. A mod of 1.0 is considered average, while a mod above 1.0 indicates higher than average losses and a mod below 1.0 indicates lower than average losses.

How Does the NCCI Mod Worksheet Affect Your Workers' Compensation Costs?

The mod directly impacts a company's workers' compensation costs. Insurance companies use the mod to adjust a company's workers' compensation premium, with a higher mod resulting in a higher premium and a lower mod resulting in a lower premium. Essentially, the mod reflects the insurance company's expectation of future losses based on past performance. If a company has had a history of high losses, the mod will be higher, and the premium will be more expensive.

For staffing companies, the mod can be particularly challenging to manage since they often have a high turnover rate and a fluctuating workforce. The NCCI Mod worksheet takes into account a company's payroll and loss history, so changes in the number of employees or the severity of claims can impact the mod and, subsequently, the premium.

How is the NCCI Mod Worksheet Calculated?

The NCCI Mod worksheet takes into account three years of a company's payroll and loss history, with more recent years having a greater impact on the mod calculation. The calculation involves comparing the actual losses a company has incurred with the expected losses for the industry and adjusting for the size of the company.

The formula for calculating the mod is as follows:

(Actual losses / Expected losses) x Adjustment factor = Mod

The adjustment factor takes into account the size of the company and is intended to prevent small companies with only one or two claims from having an unfairly high mod. The adjustment factor is typically around 0.7 for small companies and can be as high as 1.5 for larger companies.

In Conclusion

The NCCI Mod worksheet is an essential tool for managing workers' compensation costs for staffing companies. Understanding how the mod is calculated and how it impacts your premium can help you identify areas where you can improve safety and reduce losses.

Lockout/tagout tips for Light Industrial Staffing Company

LOCKOUT/TAGOUT

Tips for lockout/tagout for staffing company

In any industrial setting, safety is paramount, and warehouse operations are no exception. One of the essential safety measures in a warehouse is the lockout/tagout (LOTO) procedure. LOTO is a safety protocol designed to prevent accidental start-up of machinery or equipment that is undergoing maintenance, repair, or servicing. This procedure involves isolating and securing machines or equipment from the power source and attaching warning tags to prevent accidental use.

The importance of LOTO cannot be overstated. Failure to follow this procedure can lead to serious injuries, including amputation, electrocution, and even death. According to the Occupational Safety and Health Administration (OSHA), there are nearly 50,000 injuries and 120 fatalities every year in the United States alone due to improper use of machines or equipment.

Here are some tips on how to implement an effective LOTO procedure in your warehouse:

1. Develop a Written LOTO Program: A written program should be developed to identify and address all the equipment in the warehouse that requires LOTO. The program should include procedures for isolating equipment from its energy source, including electrical, hydraulic, pneumatic, mechanical, and thermal.

2. Conduct Regular Training: Training is essential for all employees who work with or around machines and equipment. Training should include the proper use of LOTO procedures, as well as the identification of hazardous energy sources.

3. Use Proper Locks and Tags: Locks and tags should be of high quality, durable, and resistant to tampering. Locks and tags should also be standardized and identifiable, and every employee should have their own locks and tags to ensure accountability.

4. Follow a Standard Procedure: The LOTO procedure should be followed consistently, with no exceptions. Employees should be trained to use the same procedure for each piece of equipment every time, reducing the risk of mistakes and accidents.

5. Conduct Regular Inspections: Regular inspections should be conducted to ensure that equipment and machinery are properly locked and tagged. Inspections should be conducted by a qualified person who is not part of the team performing the maintenance.

In conclusion, the importance of LOTO cannot be overstated in a warehouse setting. It is a safety protocol that prevents accidents, injuries, and fatalities. The implementation of an effective LOTO program requires a written program, regular training, proper locks and tags, a standardized procedure, and regular inspections. The safety of workers should always be a top priority, and the LOTO procedure is a critical component of a comprehensive safety program.

Staffing Insurance - Difference between General Liability and Workers' Compensation

General liability and workers' compensation insurance are two different types of insurance that offer different types of coverage. Here's an explanation of the difference between the two:

General Liability Insurance

General liability insurance provides coverage for a business in case of claims for bodily injury or property damage caused to a third party by the business. This type of insurance protects a business from financial losses that can occur as a result of accidents, injuries or damage caused to others by the business operations.

For example, if a customer slips and falls in your store and is injured, general liability insurance would cover the cost of medical expenses, legal fees and any damages that you may be required to pay as a result of the accident.

Workers' Compensation Insurance

Workers' compensation insurance provides coverage for employees who are injured or become ill due to their work. This type of insurance covers medical expenses, lost wages, and other related expenses that are incurred by an employee who is injured or becomes ill as a result of their job.

For example, if an employee falls off a ladder and is injured while performing work duties, workers' compensation insurance would cover the cost of medical treatment and lost wages.

The Key Differences between General Liability and Workers' Compensation Insurance

The main difference between general liability and workers' compensation insurance is that general liability insurance covers third-party claims, while workers' compensation insurance covers employee claims.

General liability insurance protects a business against claims for bodily injury or property damage caused to a third party by the business operations. It is designed to protect the business from lawsuits that can result in financial losses.

Workers' compensation insurance, on the other hand, provides coverage for employees who are injured or become ill due to their work. It is designed to protect employees and cover their medical expenses and lost wages, as well as other related expenses.

In summary, general liability insurance and workers' compensation insurance are both important types of insurance that businesses should have. General liability insurance covers third-party claims for bodily injury or property damage caused by the business, while workers' compensation insurance covers employee claims for injuries or illnesses that occur as a result of their work.

STAFFING WORKERS COMPENSATION INSURANCE

Workers compensation insurance is a vital part of protecting your staffing business. This type of insurance covers medical expenses and lost wages for employees who are injured on the job. It also provides death benefits to the families of workers who are killed while working.

Workers compensation insurance is required in most states, and it is important to make sure that your staffing business is properly insured. There are various workers compensation options available for Staffing Companies from Akker, LLC.

• Guarantee Cost Workers Compensation - $0 Deductible

• Small & Large Deductible Workers’ Compensation

• Staffing Workers’ Compensation Captive

• $0 Down Pay-As-You-Go workers’ compensation

In the United States, there are a number of states that have monopolistic workers' compensation systems. These systems are set up so that only one insurer can provide coverage for workers' compensation set up by the state. The problem with these monopolistic systems is that they often lead to higher costs for businesses when it comes to workers’ compensation. The four monopolistic states are Ohio, Wyoming, Washington, and North Dakota.

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Here are a few tips to consider when it comes to risk management and safety for your workers’ compensation insurance.

• Make sure all new employees are aware of your company's safety policy and procedures.

• Conduct regular safety training for all employees.

• Encourage employees to report any unsafe conditions or hazards.

• Invest in safety equipment and supplies.

• Regularly inspect your workplace for potential hazards.

• Report workers’ compensation claims within 24 hours of the accident.

By following these tips, you can help create a safe work environment for your employees and lower your workers compensation insurance rates.

Contact our team at Akker, LLC for your staffing workers compensation.

Email - info@akkerins.com

Hiring Remote Employees? Are they covered by Workers Compensation?

In today’s innovative technology work force, more and more employers are hiring their employees for remote positions. Those remote employees who live and work in geographic location outside of the employers business location.

Although hiring remote workers has its advantages for example a wider pool of employee talent and savings on overhead cost of office space.

Some employers come to a surprise when they forget to add their remote employees state to their workers compensation insurance.

An employer should notify its workers’ compensation carrier about the remote work arrangement and the employee’s remote location. In most cases, remote employees will be considered localized in the state where they work remotely. Workers’ compensation coverage obligations and systems vary by state.

For example, Texas has an elective workers’ compensation system which allows employers to opt out of workers’ compensation insurance and allows injured employees to seek general tort damages against their employer. If a remote employee is injured in a work-related accident while working from home, it is still the employer’s responsibility and most states will require proper coverage.