PP RTW w.Macro

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•An employer’s management team should demonstrate the importance of their employees safety by creating and fostering a safety culture atmosphere in the workplace. “Walk the Talk”

•An unsafe employee or workplace is an accident waiting to happen! In time it will cost an employer additional time & money in the form of injuries, loss of productivity, employee morale and additional resources used that were not planned in the business goals & objectives.


• What is Safety?– Safety is a required foundation for any successful

business; without having safety standards and enforcement; Trouble is a brewing….

– Without continuous improvement in all safety standards, the business will continue to struggle with increased costs, unexpected delays, loss of productivity, employee turn-over, employee morale, loss of revenue, loss of efficiency, employee passion towards the job they perform, etc.


• Why is it Important?– A safe work environment ensures the employee’s

well-being; as well as decreasing the chances for work place accidents or liability concerns.

– Great employees look for a safe work environment when searching for a job? Employees and their families do not desire injuries.

– It takes some time to Identify, Develop, Manage and Implement with employee personnel. A little time invested now, will save money & time and result in fewer accidents.


Hidden costs include: • Production delays. • Time lost as a result of workers and supervisors attending to an incident

victim.• Clean-up and start-up of interrupted operations. • Costs related to conducting an incident investigation. • Time spent retraining others to replace injured workers. • The possibility of reduced worker morale and lower efficiency. • The effect on employees, their families and their personal lives.


“Workplace Safety concerns foster increased productivity and reduced lost time due to injury, both of which have a positive effect on bottom

line profitability. One way of being involved with safety in the workplace and reducing the worker’s

compensation premiums is to establish a safety committee that meets the requirements for state

certification.”


PA Department of Labor and Industry

• Scheduled Trainings (Daily, Weekly, Monthly)

• Dedicated Safety Manager.

• State Approved Safety Committee.

• Accident Review & Implementation Process.

• Formal Return To Work Program.

• Safety Awareness posters in common areas.

• Safety related contest to increase awareness.

• Safety Culture within the business.


• Just because you always did it that way, doesn't make it right.

• The door to safety swings on the hinges of common sense.

• Safety is a full-time job, don't make it a part-time practice.

• An accident can ruin your career.

• Be alert - accidents hurt.

• Check yourself before you wreck yourself.

• Protect your back; use a jack.

• Safety is a state of mind - accidents are an absence of mind.

• Life did not begin by accident. Don't let it end as one.

• Working without safety is a dead end job.

• Better safe than sorry.

Always remember that no matter what profession you are in, workplace safety is of utmost importance. The employers should always ensure that their employees get all the safety benefits that are entitled in their profession and the employees should ensure that they follow all the safety regulations and rules as well. Workplace safety is a concept, which should be taken seriously and followed meticulously.


• 1. Focus. Effective teams are focused on the same safety mission—identifying hazards, working safely, and preventing accidents.

• 2. Goals. Effective teams understand safety goals and commit to achieving them. Everybody on the team works together toward the same goals to achieve success and prevent injuries.

• 3. Involvement. When teams are successful, it's because employees all over the workplace are involved in safety programs and in efforts to improve workplace safety.

• 4. Cooperation. An effective teams members cooperate with one another and depend on each another to identify hazards, follow safety procedures, and prevent accidents.

• 5. Communication. Because team members are interdependent, they must be constantly communicating, sharing information, giving warnings, reinforcing safe behavior, and talking up safety.


•Workers Compensation Insurance also known as COMP is an Insurance Coverage that the business pays to offer Benefits to employees in the event of a work place injury.

•Workers Comp insurance pays medical costs associated with a work place injury and a portion of your lost wages due to being out of work .

•Insurance carriers work to identify Insurance Fraud; minimize medical costs and return employees back to work as soon as possible, through items such as light duty release or Return To Work.


• What is Experience Rating?– Experience rating is a procedure utilizing past insurance experience of

individual employers to forecast or predict future experience. It is a systematic, mathematical method of modifying future premiums by comparing the actual incurred loss experience of an individual insured to the normal or average expected loss experience for that insured’s classification(s) during the experience rating period. The experience rating formula also includes a credibility factor, which reflects the degree of confidence placed in the insured’s past experience as a predictor of future experience. The greater the employer’s past exposures, the more credible the experience and the greater impact past experience will have in raising or lowering the experience modification.

– Under experience rating, insured’s that maintain favorable loss levels in the prior years receive a premium reduction (credit experience modification), while those with poor past loss experience are charged an increased premium (debit experience modification). Experience rating relies on the premise that each insured’s own past loss history gives a meaningful indication of it’s probable future experience.


Through an understanding of the mod formula and the data that goes into the mod, you can better control your mod, reduce costs and gain insight into your company’s operations.

– Workers Compensation insurance costs can be several hundred dollars per employee. For a company that is able to lower its MOD by twenty or thirty points )example: going from a MOD of 1.20 to .90 would be a thirty point reduction), the cost saving are substantial.

– The first step to achieving a lower mod is to understand your company’s mod, how it is calculated, and what is necessary to lower the mod.


• State establishes a Lost Cost amount (L.C.)for each classification within the State of employment.

• Insurance Carrier assigns a Loss Cost Multiplier (L.C.M.) to each classification in order to increase pricing to offset expected claims for Workers Compensation.

• Experience Modification (E-Mod) is the numerical indicator that represents your past results against the expect losses in the same classification as your business.

– L.C. x L.C.M. x E-Mod

= Cost per $100 in payroll



• 2013 3 Claims (Current Year) 1.21

• 2012 1 Claim ( Green year) 1.02

• 2011 0 Claims 1.02

• 2010 4 Claims .83

• 2009 1 Claim .84

• 2008 0 Claims .83

• 2007 2 Claims .85


• How can you lower your Experience Modification? Develop a fully comprehensive Safety & RTW policy, which results in reduced claim frequency, reduce claim cost & indemnity payments to injured employees.

• Higher insurance cost can disqualify contractors from competing for a job or a Manufacturer or Service provider on being competitive with their pricing.

• Have you considered the cost savings when your insurance premiums decrease with improved E-Modification results?

– A real example is a 25%-30% reduction in your Workers Compensation premium cost?

– How much would a 25%-30% reduction in your premium help the business profits?


Current VS. Potential


•Maintain your current position, responsibilities within organization.

•Maintain Health Benefits through company.

•Increased income, Workers Compensation only pays 2/3 of regular wages in Pennsylvania.

•Faster recovery from injuries through Modified work.


• What is RTW? (Return to Work)– Employees are an employer’s most valuable resource. Any injury or illness

that disrupts work activities can hurt both the worker and the employer. A good RTW (Return To Work) program guides injured or ill workers to transitional jobs or back to regular work in a safe and timely way. A successful return to work program controls the effects of disability and absenteeism on the job.

– There are financial & emotional benefits an employer should consider as additional reasons for creating a formal RTW program.

– A key feature of return to work is to bring the worker back to the job promptly. This takes place before the worker’s full physical recovery. A RTW program offers an employee transitional duties. These are tasks that they can do while healing. They are not the worker’s pre-injury job tasks. Transitional work must be in line with the treating physician’s advice. The physician will assess the injured worker’s status to decide what work is proper. The worker should help decide about the transitional work.



Some of the things that employee’s do not consider when they are out of work.1. They are not paying income taxes on their wage benefits while on Workers

Compensation, as it is not considered income. Not paying taxes sounds like a great thing at first but consider this, you may end up owing income tax at the end of the year because you are not paying in enough.

2. You may not be approved for certain loans because your income is decreased significantly. Some loans look at the prior two years of income tax returns to make decisions on credit.

3. You are also not paying in to Social Security which reduces the amount that you will be entitled to when you are at retirement age.

4. While out on total disability, you are missing opportunities for training, education, and skill sharpening that your coworkers are receiving.

5. Your checks from the insurance carrier will never increase. If you’re at work, you have the opportunity for salary or wage increases as well as possible company bonuses. Imagine what you earned 5 years ago. Now, try to cover today’s bills with that amount. That is what life would be like if you remain on workers’ compensation disability benefits. Imagine receiving 2/3 of what you earned in 2006, but in the year 2013


• Reduce Future Premium Increases

The insurance carrier pays for the claim initially, but the insured may end up paying for it with increased premiums in the future.

• Reduce Claims Costs More Than 50%

Return to Work (RTW) programs immediately reduces indemnity payments. Not only are lost‐time days reduced by 50%, but studies show medical costs are also reduced.

• Speed up Injured Worker Recovery

RTW programs use work as therapy that helps injured employees recover up to 3 times faster. The sooner a worker is placed on modified duty, the sooner they return to work.

• Reduce Fraud

RTW programs demonstrate that getting injured does not mean being out of work.

• Reduce Litigation

When injured workers feel secure about their employment, they’re less likely to seek out an attorney.




• 99% of all Insurance consultants are selling an Insurance policy, there is a unique 1% who are providing true Risk Management services. .

• After going through our unique process; a recent insured’s experience was a 30% reduction in claim frequency and 25% decrease in Insurance cost. Through the utilization of our diagnostic system, we study your specific circumstance’s to create custom solutions, so you can realize significant impact to your bottom line.

• Are you ready to raise the bar?

• Are you ready to take control of Workers Compensation costs?

• Are you ready to have Insurance Carriers fighting for your business?

• Let us know how we can help you develop a comprehensive plan today.


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PP RTW w.Macro