Skip to main content
Risk Management Bulletin


By March 1, 2009No Comments

With the stock market tanking, layoffs skyrocketing, and businesses cutting back, here are seven recommendations to help keep your Workers Compensation premiums under control until the tide turns:

  1. Because layoffs and less work might mean you have vehicles that are out of service, see if you can adjust the premium or get a credit.
  2. If your actual payroll and revenue are less than the “expected premium” on your Comp policy, try to get your audit as soon as possible. Schedule it now to take place right after policy expiration.
  3. Remember that lower industry payrolls will impact modifier calculations for your state and class codes. And don’t forget that lower worked hours can affect your OSHA Incident rates. Because it might take a year or so for things to equal out in the “numbers” at the NCCI and Department of Labor, plan for changes.
  4. Bear in mind that less work will mean fewer total Comp claims. This is already occurring in medical-only claims. As their caseload has decreased, attorneys for injured employees are getting more aggressive and working harder on smaller claims. Also, less work could lead to be an eventual increase in fraudulent claims.
  5. Make sure your insurance carrier understands that there’s less work for you to put injured employees back to work or on light duty.
  6. Be on the lookout for changes in the policies of your independent contractors, subcontractors, and other business partners. They might change insurers and coverages to lower their own costs. Be sure to secure insurance certificates and additional insured endorsements from them. Find out what changes, if any, need your attention and action.
  7. Watch for cutbacks on safety. Already in tight times, safety and risk management personnel may be some of the first to go.

As risk management professionals, we’d be happy to provide a complimentary review of your Workers Comp program — as well as your other coverages. Feel free to get in touch with us at any time.