WorldWide Drilling Resource

For many years, it’s been a buyer’s market: employers have saved on workers’ compensation (comp) costs by re- lying on large dividends. However, the market has turned and dividends have declined sharply. You can’t control the mar- ket, but you can control premiums by minimizing your losses. The only way companies really control their workers’ comp costs is to convince all involved that controlling costs is worth the effort. Companies which have made the greatest strides do so because everyone is focused on the impor- tance of safety. Your internal strategy - which centers on preventing claims - is much more important than shopping for a higher dividend. Understanding the elements contributing to your worker’s comp costs - Your classification codes, experience modification, sudden company growth, or company acquisitions can all affect your premiums. It’s important to know the impact each brings to your overall workers’ comp pricing. This is something your agent should be discussing with you on a yearly basis prior to renewal. Orient and train employees - This is a crucial step, especially now in a tight employment market. How you train and encourage new employees in safe working practices will determine your insurance costs in the future. During orientation, you’ll find many employees resist asking questions. To counter this reluctance, use checklists and fill gaps by explaining in detail what you expect. At the end of the training course, ask them to sign the checklist to confirm they understand, and have been instructed in, the company’s safety procedures. This signed checklist should become part of the employee’s permanent record. Put your policies into practice - If you don’t have safety policies, then develop and use them. Review your claim information: do the same employees and injuries show up year to year on your claim reports? If so, are your employees properly trained and do they understand safety procedures? Report claims immediately - Statistics reveal for every week a claims goes unreported, costs increase dramatically, as much as 50%. When employees delay reporting an injury, find out why. Your goal is to get employees to report injuries, not judge whether or not an injury is important enough to report. Investigate the causes - Even after a claim has been paid, the incident is not over until you discover its cause. While one injury is behind you, others will take its place unless you reduce the chance of the incident reoccurring. Assign the task of correcting the problem, both short and long term, to your safety committee, supervisors, or managers, Ask for reports and proposed corrective action. Always ask the injured employee how the injury could have been prevented, and do so while the event is still fresh in his or her mind. Kyle Kyle Rehme may be contacted via e-mail to michele@worldwidedrillingresource.com Kyle Rehme uses his personal knowledge of the water well, drilling, and environmental in- dustries to provide cus- tomers with practical insurance solutions. Lessons in Controlling Workers’ Comp Costs and Claims by Kyle Rehme VolkBell Property & Casualty Insurance, LLC , . *#! ' , , . &#," 1 0% "& 1 * ', &#," (%$ %% *() *,0 +- %,0 '+-* ' *#%% *+ 1 '- ,-* *+ 1 -))%# *+ 1 '!#' *+ 1 ('+-%, ',+ 1 , * %% 1 ,"( # 1 '.#*('& ', % 1 (," *& % 1 (' - ,(* (% *#%% *+ 1 #% # % *.# + 1 , * -&) *.# ) #* (',* ,(*+ /,(' * (*, (%%#'+ 35 WorldWide Drilling Resource ® FEBRUARY 2016