Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

Over the past 15+ quarters, California employers have been experiencing a soft workers’ compensation marketplace. At some point, however, this will start to pivot and the companies that will secure the more favorable pricing must be able to differentiate themselves to their insurance carriers. As we continue seeing signs of the hard market coming, without this solid explicit differentiation, it will become harder for our carriers to be aggressive with their pricing. With all of that said, as a business owner, you may be asking how you differentiate yourself to the insurance marketplace and protect your company from large premium increases. Following are some proven methods.

Return to Work Programs

Do you have a return to work program in place? We all would like to prevent injuries from occurring but need effective return to work programs to help control the total cost of a claim after it has occurred. The fewer dollars that are paid in temporary disability can directly save points on your experience modification (MOD), lower your overall loss ratio, and reduce litigation. All three of these benefits will help you in the marketplace and keep future premiums in check. Watch our “Return to Work Program: A Cost Effect Solution” webinar to learn more about these types of programs.

Hiring Practices

Take an in-depth look at your hiring practices. Many employers are experiencing an uptick in post termination claims that can turn into cumulative trauma claims. This can have severe impacts on your MOD and loss ratio, so it’s vital that you are bringing on the right employees. Pre-hire physicals and drug testing, formal interviews, checking references and job offers with job descriptions are great ways to make sure you are onboarding the right people who are clear in what is expected of them. Fraudulent claims consistently arise from employees who feel undervalued, underpaid, or underappreciated. Hire people with defined roles and make sure they are acknowledged when they are performing well. Employees who are consistently recognized by management and have strong relationships with their supervisors are less likely to file fraudulent claims. Use our Job Description Builder to quickly create job descriptions within the RM365 HRAdvantage™ Portal.

Provide and Document Safety Trainings

Utilize training materials that are provided by your insurance broker. As the hard market trend continues, it is going to be even more important to show the carrier that you are preemptively stopping claims from happening by actively training your employees. Showing your carrier partner that your employees are properly trained and management is prepared when claims occurs will go a long way to getting you the savings you deserve. Rancho Mesa has developed the RM365 Advantage Safety Star™ certification program for foreman/supervisors that is endorsed by the insurance marketplace as a way to both raise the level of safety awareness but also provide subjective credits to your premiums. Rancho Mesa also provides many additional training materials and workshops through our Risk Management Center for clients to use in conducting and documenting their safety.  

Now is the time to make sure that you are taking the necessary steps to differentiate yourself from your peers. As you look forward, consider Rancho Mesa and our myriad of resources to help start that process. Contact me at ccraig@ranchomesa.com or (619) 438-6900.