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Most states, including Pennsylvania, require employers to provide Workers' Compensation Insurance for their employees. "Failure to comply with these laws subjects employers to lawsuits by employees and criminal prosecution which could result in substantial fines, imprisonment or both," according to the PA Department of Labor & Industry.

What is Workers' Compensation Insurance?

If an employee is injured in the workplace or becomes ill due to their work environment, Workers' Compensation (WC) Insurance helps cover medical costs and lost wages. In Pennsylvania, WC covers health care expenses, ongoing care, illnesses, repetitive injuries, partial or total disability payments, permanent injury payments, and death benefits. It doesn't matter who or what caused the injury – a faulty machine, the employee, a co-worker, etc.

WC also benefits the employer by limiting an injured employee's right to sue an employer directly for damages that injury or illness causes.

How Workers' Comp Claims Affect Your Business

According to the Occupational Safety and Health Administration's (OSHA) $afety Pays Program, the following are both direct and indirect costs of Workers' Compensation claims:

• Any wages paid to injured workers for absences not covered by workers' compensation
• The wage costs related to time lost through work stoppage associated with the worker injury
• The overtime costs necessitated by the injury
• Administrative time spent by supervisors, safety personnel, and clerical workers after an injury
• Training costs for a replacement worker
• Lost productivity related to work rescheduling, new employee learning curves, and accommodation of injured employees
• Clean-up, repair, and replacement costs of damaged material, machinery, and property
• The costs of OSHA fines and any associated legal action
• Third-party liability and legal costs
• Worker pain and suffering
• Loss of goodwill from bad publicity

 Cost of Not Filing a WC Claim When an Employee is Injured on the Job

We want to clarify that we are NOT suggesting that you not file a claim when an employee is injured on the job. We understand that filing a claim takes time and may increase your WC costs, but failing to report a WC claim promptly can hurt your business, your injured employee, and your worker's comp insurance costs. It can result in legal action against your business, a minor injury morphing into a more severe injury, bad relationships with all employees, bad publicity, and more.

On the other hand, there are many benefits of reporting a WC claim promptly – preservation of evidence, lower cost of claims, quicker return to work, decreased litigation, fraud prevention, and more. There are better ways to lower the cost of WC claims.

15 Tips to Lower the Costs of WC Claims

• Develop a Safety Program
• Provide Appropriate Training
• Work with an independent insurance agent who will compare costs for worker's compensation insurance.
• Use the correct job classification codes.
• Follow OSHA's requirements and standards.
• Implement a Return-to-Work Program
• Design and Injury Response Protocol
• Ensure that your insurance provider has accurate payroll info
• Work With Your Medical Team
• Manage Claims
• Investigate Injuries
• Submit all WC notifications and claim forms promptly
• Prevent Fraud, Waste, and Abuse
• Review Your Loss Run Report
• Utilize OSHA's Estimated Costs of Occupational Injuries and Illnesses and Estimated Impact on a Company's Profitability Worksheet

Are You Paying Too Much for Worker's Compensation Insurance?

American Insuring Group offers cost-effective Worker's Compensation Insurance from many competing insurance companies. We'll work hard to get you the best price on quality insurance to protect your employees and your business.

Don't wait! Call our independent agents today at (800) 947-1270 or (610) 775-3848, or connect with us online.

One way to lower Workers’ Compensation (WC) Insurance is to close claims quickly. Unfortunately, some claims seem to take on a life of their own, and what starts out as a small medical claim morphs into a lost time claim. Proactively and carefully managing WC claims is key to minimizing the risk of that happening and affecting your bottom line (higher WC costs, lower productivity, unnecessary use of resources, lower employee morale, and lost time). The first step is to recognize what causes small claims to morph into big ones.

6 Things that Cause Small Workers Comp Claims To Morph Into Big Workers Comp Claims

1. Lack of Communication With Injured Employees

As with any relationship, communication is vital. Unfortunately, many business owners are under the false impression that communicating with injured employees can cause WC claims and increase the cost of those claims. Nothing could be further from the truth. 

An injury can be frightening for an employee. They may worry about their injury, recovery, or how they’ll continue to support their family. They may be in pain or facing unfamiliar medical treatments. Furthermore, WC claims can be complicated. Regular communication helps employees understand your policies related to injuries and return-to-work programs, helps ease their minds, and creates a more collaborative relationship to bring claims to a close quickly.

Furthermore, one study found that “46% [of injured employees] said they hired attorneys because they felt the claim had been denied when, in fact, it had not yet been accepted into the process.” And the truth is that WC cases that involve attorneys often cost more. 

2. Lack of Medical Care

Continuing to work with the injury may cause a minor injury to turn into a more severe injury. But sometimes injured employees are not aware that their medical expenses will be paid in full by WC if the injury occurs in the workplace, or they may be concerned about losing time from work, so they don’t go to a physician.

Furthermore, it may seem easier for the supervisor/manager to make an incident-only record instead of a WC claim when the injury occurs. That can lead to many headaches and cost more down the road, so injured employees must be encouraged to seek medical attention if injured on the job immediately.

3. Lack of Proper Medical Triage

Some bigger businesses and insurers have triage nurses who can evaluate an injured employee and recommend appropriate medical treatment. Many small to medium-sized businesses do not have this luxury and rely on a physician in an emergency room or urgent care.

As an employer, you need to ensure that employees understand your Return-to-Work program and encourage them to describe their regular work duties to the physician who treats them, so the physician can make an informed decision about whether an injured employee can go back to their regular work duties or perhaps lighter duties.

4. Improper Medical Care

Primary care physicians are great at handling routine sickness but may not be the best choice for workplace injuries. However, there are medical care providers who specialize in work-related injuries and realize that many employers offer RTW programs and the benefits of these programs to both employer and employee.

The PA Workers’ Compensation Act allows employers to establish a list of designated healthcare providers and states that injured employees “must seek treatment for the work injury or illness with one of the designated providers for 90 days from the date of the first visit.” Without this list, injured employees can seek medical treatment from any provider. Creating a list of good healthcare providers for your injured employees not only helps you manage healthcare costs and lower WC insurance; it also helps ensure that your injured employees receive the best care possible. 

5. Fraud

Fortunately, most employees are honest and hardworking; however, a few will try to take advantage of the system by committing WC Fraud. Examples of fraud include faking an injury, inflating an injury, and reporting an injury that happened off the job. Employers and medical providers can also engage in fraudulent WC activities. There are steps you can take to recognize and prevent WC fraud.

6. Not Having a Return-to-Work (RTW) Program

We’ve mentioned RTWs several times, so it may be obvious how crucial they are to prevent small claims from morphing into big claims and, of course, lowering WC costs. An RTW program is designed to get injured employees back to work as soon as possible (based on their doctor’s recommendation). That could mean the injured employee returns to modified duties or a temporary position to accommodate any limitations caused by the injury.

Lower Your Workers’ Compensation Costs

Doing what you can to ensure that small WC claims don’t morph into big WC claims is one way to lower your Workers’ Comp costs. Buying the right WC Insurance is another. Our experienced independent agents at American Insuring Group can help you save on the insurance that's right for you.

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online!

Workers' Compensation (WC) Insurance is required for almost every employer in nearly every state, including Pennsylvania. WC provides wage-loss and medical benefits to employees injured on the job and reduces employer litigation costs. However, no employer wants to pay more for WC insurance than necessary, so savvy businesses are always on the lookout for ways to lower WC costs.

Good job descriptions can lower Workers' Comp and other operating costs, but sadly, many businesses have inadequate or no written job descriptions.

What is a Good Job Description?

"A job description is a tool that explains the tasks, duties, function, and responsibilities of a position," according to Strategic Human Resource Management (SHRM). "It details who performs a specific type of work, how that work is to be completed, and the frequency and the purpose of the work as it relates to the organization's mission and goals."

HR experts suggest that all job descriptions include the following elements:

• Heading Information – job title, pay range, reporting relationship, hours, and likelihood of overtime or weekend work
• Summary of Objectives of the Job – general responsibilities, essential tasks, expected results
• Qualifications – education, experience, training, technical skills
• Physical Requirements (essential for lowering WC costs) – Is heavy lifting required? Are there long periods of standing? Does the job require climbing? Is driving a part of the job? Are specific body parts taxed more than others?
• Job Duties and Responsibilities – what tasks need to be performed and accomplished

SHRM recommends the following steps to create a good job description:

1. Perform a Job Analysis
2. Establish the Essential Functions
3. Organize the Data Concisely
4. Add the Disclaimer
5. Add the Signature Lines
6. Finalize

Why Are Good Job Descriptions Helpful?

No law requires employers to create job descriptions, but they can be extremely useful for the following:

• Recruiting and hiring purposes – A detailed job description will attract candidates with the right qualifications to perform the job, limiting the number of applicants and saving you time.
  
  
• Determining salaries – When job requirements are laid out – education, training, certification, physical requirements, etc., it's easier to determine appropriate compensation.
  
  
• Conducting performance reviews – A detailed job description provides a gauge managers can use to evaluate an employee's performance.
  
  
• Mitigating risk and limiting liability – An accurate and updated job description can become a helpful legal document if an employee files a lawsuit against you.
  
  
• Exempt vs. non-exempt – A job description can help justify an employee's exemption status under the Fair Labor Standards Act.
  
  
• Lowering Workers' Compensation costs – Correctly matching a worker's physical abilities to the physical demands of a job can decrease the risk of an injury and a resulting WC claim. Fewer claims mean lower WC premiums. Also, a detailed job description is an essential tool for a physician who is determining whether an injured worker is capable of returning to work in either a full or modified capacity. Studies have shown that getting an injured employee back to work as quickly and safely as possible is the best approach for both the employee and the company because claims are resolved more quickly; administrative costs, overtime pay, absenteeism, lawsuits, and staff turnover are reduced; productivity, employee morale, and employee relations are improved.

Do You Want to Lower Your Workers' Compensation Costs?

At American Insuring Group, we offer cost-effective Workers' Comp insurance from various competing insurance companies. We work diligently to ensure you receive the best price on quality insurance that protects your employees and your business.

Ready to save? Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online!

No employer wants to pay more for Workers’ Compensation Insurance than necessary. Still, they also don’t want to be caught being underinsured, which is why assigning the correct job classification codes is crucial.

What are Job Classification Codes?

A job classification code is a three- or four-digit code that is assigned to every employee based on the type of duties they perform. Most states use the National Council on Compensation Insurance (NCCI) classification system. However, other states use their own classification system. As of this writing, those states include:

• Pennsylvania
• Delaware
• New Jersey
• New York
• North Carolina
• Indiana
• Massachusetts
• Michigan
• Minnesota
• Wisconsin
• California

In Pennsylvania, the Pennsylvania Compensation Rating Bureau (PCRB) is the Workers’ Compensation rating authority.

How do Job Classification Codes Affect WC Premiums?

Whatever classification system is used, these codes are based on the amount of risk a job or work environment may pose. Each code is assigned a specific value based on these risks, which then helps insurance companies determine the cost of WC premiums. The higher the risk, the higher the value assigned.

This is the basic (oversimplified) formula used to calculate your premiums:

RATE x (PAYROLL/100) x EXPERIENCE MODIFIER = PREMIUM

RATE is determined by an employee’s classification code value based on the likelihood of that employee being injured on the job. An employee performing a more dangerous job, such as a construction worker, will have a classification code with a higher value than someone in a less risky position, such as an office worker.

If you were to accidentally assign the code for a construction worker to an office worker, you’d end up paying more for WC insurance than necessary. On the other hand, if you accidentally (or purposely) assign the code for an office worker to a construction worker, you could face fines and potential lapses in coverage.

Employee vs. Independent Contractor

In most states, any business with one or more employees is required to carry Workers’ Compensation Insurance for its employees. As we said, EVERY employee is assigned a classification code. If you higher an independent contractor, you are not required to carry Workers’ Compensation for that individual, which is why many business owners are tempted to classify an employee as an independent contractor. This is not a good idea for many reasons.

“In the event, an employer is uninsured at the time an employee suffers a compensable work-related injury, the department will pursue reimbursement from the employer of monies paid from the Uninsured Employers Guaranty Fund in relation to the claim. Reimbursement will include costs, interest, penalties, fees under section 440 of the Worker’s Compensation Act and attorney fees,” according to the Pennsylvania Department of Labor & Industry. “The department will also pursue prosecution against the uninsured employer under section 305 of the Act.”

Misdemeanor convictions can result in a $2,500 fine and up to one year in prison for each day the employer is in violation. Felony convictions can result in a $15,000 fine and up to seven days in jail for each day the employer intentionally violated the requirement.

The injured employee can also sue the employer for work-related injuries or diseases.

Get The Right Worker's Comp Insurance

Ensuring that the correct job classification code is assigned to each employee can be overwhelming, especially if you have thousands of employees or locations in multiple states.

The agents at American Insuring Group specialize in Workers’ Comp insurance and can help ensure that the correct job classification codes are assigned to each employee. And, remember that job duties can change, so a regular review of job codes can help ensure that your employees have the right Workers’ Comp coverage.

Don't overpay for WC Insurance! Contact one of our agents specializing in Workers Compensation Insurance today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Most states – including Pennsylvania – require employers to provide Workers' Compensation Insurance for their employees. Workers Comp (WC) is designed to ensure employees injured on the job receive proper medical care and protect employers from direct lawsuits resulting from those injuries. 

While WC insurance is mandatory and even a good investment for most employers, it can be complicated and costly if not managed properly. 

12 WC Tips Every Employer Should Know:

1. Understand How Your WC premiums are Calculated

Pennsylvania Workers' Compensation premiums are based on the following formula: WC Premium = Classification Code Rate X Experience Modifier X payroll/$100. Understanding this calculation reveals how you can lower your WC costs. 

2. Train Employees

The Occupational Safety and Health Administration (OSHA) states, "Training in the safe way for workers to do their jobs well is an investment that will pay back over and over again in fewer injuries and illnesses, better morale, lower insurance premiums, and more." OSHA also reports, "Over 60 percent of chief financial officers in one survey reported that each $1 invested in injury prevention returns $2 or more." 

3. Develop an Ergonomic Program

According to ErgoPlus, Musculoskeletal Disorders (MSDs) account for almost 400,000 injuries every year and one-third of all WC costs, resulting in 38% more lost time than the average injury or illness. Whether your industry is highly dangerous or relatively safe, musculoskeletal disorders can affect your workers. An ergonomic program can help minimize MSDs. 

4. Provide Proper PPE

Personal Protective Equipment (PPE) is equipment employees wear to minimize exposure to chemical, electrical, physical, and other workplace hazards. Providing proper PPE can reduce injuries and illnesses, thereby lowering WC Insurance costs. 

5. Develop Clear Job Descriptions and Assign the Right Classification Codes

Every employee is given a classification code based on the likelihood of being injured on the job: the more dangerous the job, the higher the classification code, and the higher the WC premium. Assigning the correct classification code to each employee is crucial because if you accidentally classify an accountant as a driver, you'll pay more than necessary for WC coverage. Conversely, if you classify a driver as an accountant and you're caught, you may be required to pay the outstanding amount owed and/or severe penalties. Developing clear job descriptions can make classification easier. 

6. Accurately project and monitor payroll

When purchasing WC coverage, your annual payroll will be estimated based on your current circumstances, which of course, can change. When your insurance carrier conducts its annual audit, you may receive a credit or a bill based on the actual payroll. Monitoring and reporting your payroll throughout the year can help improve your cash flow. 

7. Always Investigate an Accident

Every Workers' Compensation Insurance claim should be investigated because it's imperative to making accurate and legal assessments related to primary liability.

8. Communicate

Did you know injured employees typically hire a lawyer because of inadequate communication with their employees - not to get more money? So communication – with new employees, injured employees, physicians, etc. - is the key to lowering WC costs. 

9. Prevent Insurance Fraud

Most employees and employers are honest; however, a small group of people costs companies billions of dollars annually by committing WC Insurance fraud. Preventing this fraud can help lower your insurance costs. 

10. Learn How to Read a Loss Run Report 

 Loss Run Reports show your company's claim activity for the policy period. You can use the information from this report – the date of each loss and claim, a brief description of each claim, the amount paid to the insured, and whether or not the claim is closed – to lower your insurance costs and improve other areas of your business.

11. Review annually

With all of your time-consuming responsibilities, it may be tempting to simply renew your WC Insurance policy as is, but that could cost you money. Reviewing your policy offers an excellent opportunity to check for errors and provide any updates to ensure that there aren't any gaps in your insurance and that you aren't paying more than you need to.

12. Find the Right Insurance Agent

The right insurance agent can help save you money, avoid insurance gaps, and help protect your business. The independent agents at American Insuring Group are trusted Workers Comp Insurance experts who compare policies and cost among lots of competing carriers to help get you the best deal on quality insurance protection.

So start saving by calling us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Musculoskeletal disorders - one of the fastest growing threats to workplace safety and health – are costing $20 billion a year in Workers' Compensation Insurance costs and an additional $100 billion in lost productivity, employee turnover, and other indirect expenses, according to the Centers for Disease Control and Prevention (CDC). In 2019, musculoskeletal disorders accounted for nearly one-third of all worker injury and illness cases, according to the U.S. Department of Labor. 

Any employee can experience this type of injury, but they are becoming more prevalent with the aging American workforce. A repetitive stress injury (Aka, repetitive strain injury, repetitive motion injury, repetitive use injury, and RSI) is a musculoskeletal disorder. 

The industries most at risk for RSI include the following:

• Manufacturing
• Retail
• Health Care
• Office
• Construction
• Food Preparation
• Transportation

What is a Repetitive Stress injury?

Repetitive stress injuries are defined as painful musculoskeletal disorders "caused by cumulative damage to muscles, tendons, ligaments, nerves, or joints (as of the hand or shoulder) from highly repetitive movements." RSIs commonly affect wrists, elbows, arms, shoulders, fingers, and knees. Any motion or movement can cause an RSI if repeated too often – even typing on a computer. 

• RSIs can lead to several conditions:
• Tendinitis – Inflammation of the tendons
• Carpal Tunnel Syndrome – Excessive pressure on the median nerve, which runs from the forearm into the palm of a hand
• Muscle strains and low back injuries
• Rotator cuff injuries
• Epicondylitis (Aka Tennis Elbow)
• Trigger Finger – affects tendons that flex the fingers and thumb
• Tenosynovitis – Inflammation to the tendon and the sheath around a tendon

Common causes of RSIs include poor posture, working in the cold, working with a vibrating tool, performing a high-intensity activity for a long time without resting, or holding an awkward position. 

Repetitive stress injuries occur over time. Symptoms include pain, tingling, throbbing, numbness, stiffness, weakness, swelling, and sensitivity to cold or heat. Employees who experience any of these symptoms should not ignore them, which can lead to more severe RSI injuries. 

Treatment of RSIs depends on the severity of the symptoms and what is causing them. Typically, the best treatment is to reduce or modify the activity that caused the injury. 

10 Tips to Prevent Repetitive Stress Injuries

1. Provide ergonomic training that includes the principles and applications of ergonomics; proper use of equipment, tools, and machine controls; good work practices, including proper lifting techniques; recognition of RSI symptoms; the importance of reporting RSIs before they become more serious; etc.
   
   
2. Provide appropriate ergonomic tools, such as chairs that support the back, headsets for long phone calls, and adjustable desks and computer monitors.
   
   
3. Establish a culture of safety
   
   
4. Limit repetitive motions and exposure to vibration
   
   
5. Maintain good posture
   
   
6. Avoid prolonged sitting at a desk or computer
   
   
7. Adjust your workstation
   
   
8. Take regular breaks from repetitive tasks
   
   
9. Stretch throughout the day
   
   
10. Use tools correctly

Lower Your Workers' Compensation Insurance Costs the Easy Way!

Most states – including Pennsylvania – require that all employers carry Workers' Compensation Insurance for all employees; however, there are many ways to lower the cost of WC insurance. Preventing repetitive stress injuries is just one way. Working with the independent agents at American Insuring Group – who offer cost-effective worker's compensation insurance from various competing insurance companies – is another way, and it's easy!

Call us at (800) 947-1270 or (610) 775-3848 or connect with us online.

In most states, including Pennsylvania, Workers’ Compensation Insurance (WC) is required by law. But, truthfully, even if the insurance isn’t required in your state, WC is an excellent investment as it helps protect your employees and your business.

We’re sure you have a lot on your plate as a business owner or manager, and conducting an annual review of your insurance policies – including WC – may not be high on your to-do list. It’s so much easier to renew the policies you currently have. However, an annual review helps ensure you are not underinsured or overpaying for your coverage.

Here are three steps to make the annual review process as painless as possible.

Step 1: Review Your Business

Look at how your business may have changed since you purchased your existing WC policy. Ask yourself the following questions:

1. Did your business needs change? For example, did you switch from an independent contractor to an LLC?
2. Did you hire new employees or let old employees go?
3. Has the classification code for any of your existing employees changed?
4. Has your payroll changed?

Step 2: Look at Your Current Policy

The next step is to take a look at your current WC policy, keeping in mind how your WC premium is calculated:

WC Premium = Classification Code Rate X Experience Modifier X payroll/$100

Look at the declaration page to see how your workers are classified and the estimated payroll for each, and determine if this information is still accurate.

Classification Codes - A classification code is a 3-digit number assigned to every type of job. It is based on the likelihood of that employee being injured on the job and helps determine your WC premium. Typically, the more risk of injury, the higher your WC costs. Therefore, assigning the wrong classification code can lead to overpayment, insufficient coverage, or even WC fraud.

Payroll - “Initially, the payroll used to calculate your premium is an estimate. Once your actual payroll has been determined, adjustments may have to be made, and you could be audited and billed accordingly,” Pennsylvania Insurance Department reports.” Any changes to your business within the policy term that affect the rate of your policy can lead to an audit and possible billing.”

Experience Modifier - Finally, review your loss run report, which shows your company’s claim activity for the policy period. Loss Run Reports list the date of each loss and claim, a brief description of each claim, the amount paid to the insured, and whether or not the claim is closed. You can think of it like a credit report or report card for insurance companies.

This information is used to determine how risky a business is to insure, which can affect the premium you pay for insurance or even if an insurance company will issue a policy or renew a policy for your business. You can use the information to lower your insurance costs and even improve other areas of your business.

Step 3: Renew Your WC Insurance (Contact us for great rates!)

Armed with this information, you are ready to renew your WC coverage and ensure that you have the right coverage at the best price.

American Insuring Group agents have years of experience with Workers’ Compensation and other commercial insurance policies to ensure that you get the right coverage for your business needs. As independent agents, we check with multiple insurance companies to ensure you pay the lowest premium for that coverage.

✅ So give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Most states – including Pennsylvania – require nearly all employers to carry Workers' Compensation (WC) Insurance, but shopping for WC insurance can be frustrating. American Insuring Group is here to help simplify the process and ensure you have the right coverage at the lowest cost.

What is Workers' Compensation Insurance?

Before we get into the nuts and bolts of purchasing WC Insurance, let's discuss what it is and how your premium is calculated. We will focus on PA WC, but many other states are similar (see first tip below).

The PA Department of Labor & Industry states, "The workers' compensation system protects employees and employers. Employees receive medical treatment and are compensated for lost wages associated with work-related injuries and disease, and employers provide for the cost of such coverage while being protected from direct lawsuits by employees."

In Pennsylvania, whether you have one employee or one hundred employees, full or part-time employees, or your employees are family, you are probably required to have Workers' Compensation Insurance. There are few exemptions, such as railroad workers, federal employees, domestic servants, etc. Failure to provide WC for your employees can lead to significant fines, lawsuits, and even criminal prosecution.

Your Pennsylvania Workers' Compensation premium is based on the following formula:

WC Premium = Classification Code Rate X Experience Modifier X payroll/$100

Here are seven tips for purchasing WC Insurance to ensure you have the right coverage at the lowest cost.

Know What Your State Requires

Your state will determine whether or not you are required to carry Workers' Compensation Insurance, the WC regulations you need to follow, and how you can purchase the insurance. Click here for a state-by-state comparison and links to the entities responsible for Workers' Compensation. And remember, even if you are not required to purchase WC insurance, it may be worth having.

Provide Your Existing Policy

If you already have WC coverage, keep your policy handy. Providing information – such as your employees' class codes, your experience modifier, and loss run reports – from that policy can help expedite the process.

Choose the Right Classification Codes

As shown in the formula above, the classification code will affect your WC premium. Classification codes are based on the likelihood of an employee being injured on the job. For example, the classification code for an accountant or someone with administrative responsibilities will represent less risk than a classification code for a driver or contractor. Typically, the more risk of injury, the higher your WC costs.

You don't want to misclassify an accountant as a driver because you'll pay more than necessary for your WC coverage. On the other hand, you don't want to misclassify a driver as an accountant because if caught during the annual audit or a claim, you may be required to pay the outstanding amount owed and/or severe penalties.

Monitor Your Payroll

When purchasing WC coverage, your annual payroll will be estimated based on your current circumstances, which of course, can change. When your insurance carrier conducts its annual audit, you may receive a credit or a bill based on the actual payroll. Monitoring and reporting your payroll throughout the year can help improve your business cash flow.

Ask About Discounts and Credits

Yes, your WC premium is based on the formula above, and most of the components of that formula are out of your control. However, you may be entitled to discounts and/or credits for lowering risk with workplace safety or formal training programs.

Review Annually

Your insurer will conduct an audit each year, and so should you. It's an opportunity to check for errors and provide any updates. Reviewing your loss run report – a report issued by your current insurance provider that shows your company's claim activity for the policy period - may also help lower your WC insurance costs.

Work With a Workers Comp Expert!

Working with an independent agent with experience in Workers Compensation insurance at American Insuring Group is a great way to lower your WC costs. We will compare costs and options among competing worker's compensation insurance carriers to be sure you get the right insurance at the best price.

Call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

In most states, including Pennsylvania, almost all employers are required to carry Workers’ Compensation (WC) Insurance. WC helps cover lost wages, health care expenses, disability payments, death benefits, and permanent injury payments (such as the loss of a body part) when an employee suffers a work-related injury or disease. It also helps protect your business against lawsuits related to the injury. 

How is Your WC Premium Calculated?

Your Workers’ Compensation premium is based on the following calculation:

          WC Premium = Classification Code Rate X Experience Modifier X payroll/$100.

Your experience modifier compares the history of your losses to what is typically expected in a class similar to your company. It is based on the following:

• Number of Claims
• Cost of Claims
• Frequency of Claims
• Severity of Claims
• Closed vs. Open Claims
• Claims History of other businesses in your industry
• Years in business
• Number of employees
• State minimums

 The lower your experience modifier, the lower your premiums. Unfortunately, WC fraud, waste, and abuse can raise your experience modifier and increase your WC premiums. In fact, the Insurance Information Institute reports, “workers’ compensation insurance fraud alone costs insurers and employers $30 billion a year.”

 What is WC Fraud, Waste, and Abuse?

The first step to minimizing WC fraud, waste, and abuse is the ability to recognize each.

• Fraud – According to the PA Department of Labor & Industry, “An employee commits fraud by knowingly and intentionally receiving wages while collecting total disability benefits or receiving partial disability benefits in excess of the amount permitted while receiving wages.” Examples include faking an injury, inflating an injury, and reporting an injury that happened off the job. Employers and medical providers can also engage in fraudulent WC activities.
• Waste – WC waste occurs when an injured employee overutilizes WC benefits. An example of WC waste is an employee who injures their back on the job and continues to see a chiropractor after full recovery.
• Abuse – WC abuse occurs when an employee who is injured on the job expands their symptoms to receive additional benefits. For example, an injured employee may falsely report symptoms to prevent them from participating in a return-to-work program.

 Signs of Possible WC Fraud, Waste, and Abuse

There are a few common signs of WC fraud, waste, and abuse that you can watch out for:

• No witnesses to an incident
• Conflicting diagnoses
• Refusing treatment
• Not reporting injury immediately
• Inconsistent or suspicious recount of the injury
• A history of WC claims
• A history of frequently changing physicians, jobs, and addresses
• An injury that occurs right after a weekend, strike, or holiday
• The inability to reach an injured employee
• A post-termination claim
• Pre-existing medical conditions
• Financial problems
• An unwillingness to cooperate in the injury investigation

 11 Tips to Prevent WC Fraud, Waste, and Abuse

Industrial Safety & Hygiene News offers the following tips to “keep claims above board”:

1. Create a fraud-free work environment by having a strong policy against fraud.
2. Establish a culture of safety.
3. Hold regular safety meetings.
4. Institute sound hiring procedures by screening potential employees.
5. Communicate regularly with injured employees.
6. Follow proper WC reporting and investigating procedures.
7. Educate employees on WC fraud, waste, and abuse and their consequences.
8. Make it easy to report injuries
9. Use surveillance equipment
10. Implement a drug testing policy
11. Choose credible medical providers that have WC experience.

 Lower Your Workers Compensation Insurance Premiums:

In addition to preventing WC fraud, waste, and abuse, another way to lower Workers’ Compensation Premiums is to work with one of the experienced independent agents at American Insuring Group. Our independence gives us the freedom to shop the market to find the right insurance to meet your specific needs at the best price.

Call American Insuring Group today at (800) 947-1270 or (610) 775-3848, or connect with us online.

The right Restaurant Insurance coverage is an investment in your business or a safety net when (not if, but when) things go wrong – accidents, vandalism, fires, etc. But the wrong Restaurant Insurance can be an unnecessary expense.

Here's what we mean…

Let's say you serve alcohol to someone at your restaurant. They get into a car accident on the way home, and your business gets sued for bodily injury or property damage caused by that person. The Liquor Liability Insurance you purchased helps cover legal costs, settlements or judgments, costs to repair damages, and medical bills. That's an investment.

Now, let's say you run a small diner. To determine your Workers' Compensation and General Liability Insurance premiums, your restaurant is classified as 0899 (Bar, Nightclub) instead of 0975 (Restaurant) as it should be. You're going to end up paying for potential risks that don't apply to your business. That is an unnecessary expense.

Here are some questions you can ask to ensure you get the "Right" Restaurant Insurance.

Is My Restaurant Correctly Classified?

As stated above, if your diner is incorrectly classified as a bar, you could be paying more in insurance premiums than you need to. On the other hand, if your bar is misclassified as a restaurant, you could find a gap in your coverage.

Do I Need Workers' Compensation?

The PA Department of Labor & Industry states, "If you employ workers in Pennsylvania, you must have workers' compensation insurance -- it's the law." Failing to carry appropriate workers' compensation insurance carries a potential $2,500 fine and up to one year in jail. Additionally, if the court determines the failure to comply is intentional, you could face a $15,000 fine and up to seven years in prison.

Do I Need Commercial Auto Insurance?

If your restaurant has a vehicle that you or an employee uses for business, you need Commercial Auto Insurance. Most personal auto insurance policies will exclude business use, so if you're in an accident while conducting business for your restaurant and only have personal auto insurance, your claim will probably be denied. If an employee uses their own car for restaurant business, such as delivering food or going to the bank, you need Hired or Non-Owned Auto coverage.

Do I Need Cyber Liability Insurance?

If you gather any type of personal information – which most restaurants do – you should have Data Breach and Cyber Liability Insurance. Don't think that just because you are a small business that you aren't susceptible to data breaches. Verizon Business 2020 Data Breach Investigations Report found that "Almost a third or 28% of data breaches in 2020 involved small businesses." One data breach can cost your business thousands of dollars.

Are There Any Gaps in My Insurance?

Think about your assets – property, employees, equipment, vehicles, etc. – and your potential risks – fire, injury, etc. to determine if there are any gaps in your insurance. An insurance agent specializing in Restaurant Insurance understands the unique challenges and risks inherent in the restaurant industry and knows the right questions to ask to ensure that you don't have any coverage gaps.

How Can I Lower My Restaurant Insurance?

The right Restaurant Insurance coverage helps protect you, your restaurant, employees, and customers, but that doesn't mean you should pay more than you need to for that coverage. Here are a few tips to lower your Restaurant Insurance costs:

• • Focus on Safety
  • Improve Security
  • Hire Wisely
  • Pay Upfront
  • Increase Your Deductible
  • Carry the Right Coverage
  • Bundle
  • Review Your Policies Annually
  • Work With an Independent Agent

We Specialize in Restaurant Insurance!

The agents at American Insuring Group specialize in Restaurant Insurance. As independent agents, we will compare the cost of your coverage with several companies to get you the lowest price possible. So, give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.