Sunday, November 4, 2012

Save Money on Workers' Compensation Insurance by Implementing Return to Work Program

Workers' Compensation can be expensive, but it is mandated by the government that businesses carry it. The cost of Workers' Compensation is determined by a company's Experience Modification. The Ex Mod takes into account previous loss history, so the more losses and the bigger the losses the more you pay. Obviously the way to keep the lowest premium is to have zero losses, but if a loss does occur there are certain things that a business owner can do to limit the loss and in turn save money down the road. One program that a business can implement, to keep their Ex Mod lower, is a Return to Work program.
Return to Work (RTW) is also referred to as Modified Duty or Transitional Work. Return to Work is a process that an employer can set up to bring injured employees back to work quickly and safely. When an employee is injured badly enough that they cannot perform their regular duties an employer can bring them back to work doing a different task that is not as physical, as long as the physician Okays it. For example, if a roofer hurts his knee and cannot resume his normal job activities he may be able to help file in the office or just be an assistant to the manager. The positions that are created do not have to be full-time; they just need to be enough to keep the employee busy and still earning some money.
By the employee working and earning money again it limits the amount that the insurance company pays the employee for lost time, and when the insurance company pays less it will not increase the Ex Mod as much. Another benefit of RTW is that it gets the employee back into their regular routine faster. When a person gets used to laying on the couch everyday it can sometimes be difficult to get motivated to go back to work. By getting the employee off of the couch it also stops them from seeing the many commercials for Workers' Comp attorneys that play during day time TV. In addition, since the employee is still coming to work everyday it is easier for the employer can make sure that the employee is attending physical therapy sessions and other medical treatments as they should.
Some Workers' Comp insurance companies will help you set up your own Return to Work program. If your insurance company will not help you create your own Return to Work program talk to your insurance agent and they should be able to help you.
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