There is a very simple way to reduce health insurance and workers compensation insurance costs: provide a safer work environment and reduce the number of workplace injuries. We said it was simple, not easy.

Musculoskeletal Disorders - Largest Category of Workplace Injuries

We spend a lot of time talking about safety in the workplace in more dangerous industries such as construction and trucking, but every workplace has its safety risks. One risk almost every worker faces is Musculoskeletal Disorders (MSDs), also known as repetitive motion injuries. MSDs are the largest category of workplace injuries. According to OSHA, MSDs are responsible for 34 percent of all lost-workday injuries and illnesses, account for $1 of every $3 spent for workers’ compensation, and cost U.S. companies as much as $50 billion every year in direct costs.

In addition to increased medical and insurance costs, MSDs cause painful injuries that sometimes require surgery and prescription medications, reduce productivity, and decrease morale. While most MSDs are very preventable, many companies do little or nothing to reduce or eliminate MSD risks. A proactive, prevention-focused approach to MSDs can save your business a significant amount of money and your employees a great deal of pain. Preventing an injury rather than treating it just makes good business sense.

What are Musculoskeletal Disorders?

MSDs, Aka repetitive motion injuries are injuries that affect the movement of the musculoskeletal system including muscles, nerves, tendons, ligaments, discs, blood vessels, etc., and they can impact any employee from an office worker to a construction worker.

The parts of the body usually affected by MSDs include the arms, hands, fingers, neck, back, wrists, legs, and shoulders. Common MSDs include Carpal Tunnel Syndrome, Tendonitis, Tension Neck Syndrome, Herniated disc, etc.

When employees are exposed to MSD risk factors, a certain part or parts of their bodies become fatigued, and when that fatigue continues more rapidly than the body can recover, a musculoskeletal imbalance occurs, which can eventually lead to an MSD.

Workplace tasks that can cause this fatigue – known as ergonomic risk factors - include things like high-task repetition (cycle time of 30 seconds or less), forceful exertions, awkward postures, static postures, quick motions, compression or contact stress, vibrations, and cold temperatures.

What is Ergonomics?

OSHA defines ergonomics as “the study of work. More specifically, ergonomics is the science of designing the job to fit the worker, rather than physically forcing the worker’s body to fit the job.” According to OSHA, “Ergonomics draws on a number of scientific disciplines, including physiology,biomechanics, psychology, anthropometry, industrial hygiene, and kinesiology.”

By identifying ergonomic hazards in a workplace and adapting tasks, workstations, tools, and equipment, employers can reduce physical stress on their employees’ bodies and eliminate many MSDs.

How to Develop an Effective Ergonomic Program

To develop an effective ergonomic program, you need to identify potential ergonomic risk factors by reviewing operations and work practices; examine injury and MSD history within your company and information from OSHA, insurance companies, and other sources; and survey the employees performing the jobs.

Control methods of an ergonomic program may include engineering controls or work practice controls. Engineering controls may consist of eliminating excessive force and awkward posture requirements by using mechanical assists, counterbalance systems, adjustable height lift tables and workstations, powered equipment, and ergonomic tools. Work practice controls may include training on safe and effective procedures to complete tasks, job rotation to avoid prolonged periods of performing a single task, and regularly scheduled rest or stretch breaks. 

Recognizing and controlling ergonomic risk factors is an essential step to providing a safe workplace for all of your employees and improving your bottom line. Good ergonomics is good economics. So is good insurance.

Protect Your Business With Great Insurance - Learn More

To learn more about properly protecting your business, give American Insuring Group a call at (800) 947-1270 or (610) 775-3848, or contact us online.

Our independent agents can educate you on your options and provide you with great business insurance at an unbeatable price! Call today to learn more.

Workers Compensation Insurance for interstate trucking companies can be complicated, but it is required by most states. And, due to the dangerous nature of truck driving, it is essential for the well-being of both truck drivers and trucking companies.

Determining Workers Compensation Insurance Risks

The first challenge comes when insurance underwriters try to determine a trucking company’s risks. Each state has its own workers comp insurance base rates, requirements, and rules. To further complicate matters, sometimes a trucking company is located in one state, the truck driver resides in another, and the WC injury occurs in yet another state. While there are interstate payroll classification codes available from the National Council on Compensation Insurance (NCCI), those codes don’t apply to three highly-traveled states: California, New York, and Texas.

The 7th Deadliest Occupation

Another challenge is the dangerous nature of the occupation. With all the time truck drivers spend on the road, it’s probably no surprise that the Bureau of Labor Statistics lists truck driving as the seventh deadliest occupation. In 2016, there were 918 fatal injuries making the fatal injury rate for truck drivers 24.7 per 100,000 full-time employees.

Health and Injuries 

What may surprise you is that truck drivers also tend to be less healthy than the average worker, which makes them more prone to other types of injuries. Drivers sit for long periods of time and then have brief periods of strenuous labor as they load and unload their trucks. Many truck drivers also have unhealthy lifestyles that include a minimal amount of exercise, being overweight, and having irregular sleep habits. This causes a disproportionate number of musculoskeletal injuries compared to other occupations and poor overall physical health that often impacts employee recovery time when they are injured. 

The most common injuries truck drivers experience are vehicle accidents, slips and falls climbing in and out of the cab or trailer and on loading docks, trains, and back injuries while loading and unloading cargo, carpal tunnel, and crush injuries caused by loads falling on the driver. Many truck drivers also attribute kidney stones and hemorrhoids to their jobs but rarely claim either as an occupational injury or disease. 

Despite its complexities, here are 3 ways trucking companies can save on workers’ compensation insurance:

1. Develop a Safety Program

Take the time to develop a comprehensive safety program specific to your business and give a copy of your safety policies to every truck driver along with safety guidelines specific to eliminating injuries in drivers. Also, create a culture of safety by making it clear that every driver is expected to follow your safety policies or face the consequences and requiring every driver to attend at least one annual safety training to reinforce your safety policies.

2. Perform Drug Testing

Drug testing will not only affect your workers compensation insurance costs but also your liability insurance costs. You should test every new hire and conduct random drug testing and mandatory drug testing after an accident that causes damage to property or injury to the driver or anyone else.

3. Health & Wellness Program

An effective health and wellness program may reduce the cost of both WC and health insurance benefits. These programs can help reduce injuries and help employees recover more quickly from injuries. This may seem like an unnecessary expense, but the WC savings you could experience just by reducing obesity alone will pay for the cost of the health and wellness program.  

CAUTION - Don't Misclassify Drivers!

It’s very tempting to try to reduce your workers comp insurance costs by classifying all of your drivers as independent contractors, but the only drivers who should be classified as independent contractors are those who regularly drive for other companies. If the driver is only driving for your company and you’re designating when and where the loads are picked up and dropped off, the IRS and the state board of workers’ compensation will consider them your employees – not independent contractors.

The penalties and fines that you can face for not having WC for employees could quickly put a small or medium-sized trucking company out of business. Plus, drivers whose WC claims are denied can (and often do) sue your company for medical bills, pain and suffering (which is not paid under WC), and the loss of all wages (as opposed to the typical two-thirds of wages paid by most WC claims).

Get the Right Workers Comp Insurance for Your Business 

While workers compensation insurance for trucking companies can be complicated, the WC experts at American Insuring Group can provide affordable and reliable workers compensation to protect both your employees and your business.

Don't take chances - call us at (800) 947-1270 or (610) 775-3848, or contact us online.

Are you interested in lowering your workers compensation insurance and related costs? Would you like to improve employee morale, increase production, and reduce absenteeism? Implementing a workplace safety program can do all that and so much more.

It is true that developing a safety program takes time and effort, and it can be difficult to measure the return on investment, but research has shown that it is definitely worthwhile.

$170,000,000,000.00 Per Year!

According to OSHA, “Businesses spend $170 billion a year on costs associated with occupational injuries and illnesses -- expenditures that come straight out of company profits. But workplaces that establish safety and health management systems can reduce their injury and illness costs by 20 to 40 percent. In today's business environment, these costs can be the difference between operating in the black and running in the red.”

And about that ROI… it’s been estimated that for every dollar invested in injury prevention, businesses will see a $2 to $6 return, according to Safety and Health Magazine. That's an ROI of 100% to 500%!

Here are four ways your business can benefit from implementing a safety program

#1. Lower Workers’ Compensation Costs

Often, workers compensation (WC) costs are one of the highest insurance costs in a business. It has been estimated that employers pay almost $1 billion per week for direct workers' compensation costs alone.

Three factors go into determining your workers comp insurance premiums: Classification Code, Payroll, and Experience Modification Rate. Classification codes are based on the type of business you’re in and the tasks your employees perform. There is a corresponding WC rate (which varies by state) for each classification code. The more hazards an employee is exposed to, the higher the rate. The amount of payroll a business runs annually also affects your WC premiums. There isn’t much you can do about these first two; they are what they are

But the third factor – your experienced modification rate – is something you have some control over. Every business is given MOD, which is a number that represents its insurance claim history. The average MOD is set at 1.00. If you have few or no history of claims, your MOD can go lower, which means lower premiums. The more claims you have, the higher your MOD goes, and the higher your WC premiums.

So, the best way to reduce your WC insurance premiums is to avoid workplace accidents, and the best way to do that is with an effective safety program.

In Pennsylvania, you can also receive a five percent discount on WC premiums if you have a safety committee that meets the requirements for state certification.

#2. Avoid OSHA Penalties

The Occupational Safety and Health Administration (OSHA) has stringent workplace safety guidelines that every business is expected to follow. Failing to abide by these rules and regulations can result in expensive fines.

Here is a list of OSHA’s penalties:

• $12,934 per violation for serious, other than serious, and posting requirements violations
• $12,934 per day beyond the abatement date for failure to abate
• $129,336 per violation for willful or repeated violations

In the fiscal year 2017, OSHA reported the most-citied violations were 6,887 violations regarding fall protection, 4,652 violations regarding hazard communication, 3,697 violations regarding scaffolding, and 3,381 violations regarding respiratory protection 

Implementing a safety program specific to your industry and your business that follows OSHA’s guidelines can help you avoid costly fines. OSHA offers many publications on everything from roof tarping safety to preventing workplace violence to help you create a safer work environment and avoid OSHA’s penalties.

#3. Avoid Costly Accidents

Accidents can be costly. You may find yourself paying for an accident investigation, property damage repairs, insurance deductibles, administrative expenses, and recruiting, training and compensating replacement workers.

You may also face the hefty costs involved in a lawsuit. Accidents and lawsuits can also affect your reputation, which can affect sales and your ability to attract skilled employees. Avoiding accidents also can lower your worker's comp insurance premiums. 

#4. Keep Employees Safe

Ensuring a safe work environment for your employees is the right thing to do and just makes good business sense. It should be your number one priority.

Safe work environments improve employee morale and make your place of business an attractive place to work. This usually means more productive employees, better service, a better quality product, and more skilled employees. OSHA estimates that lost productivity from injuries and illnesses cost businesses $60 billion every year.

If you want to see the financial rewards of a safety program, it’s essential to have a written policy in place and make it clear that safety is a priority and that the policies and procedures will be enforced. And you should continually provide safety training and look for ways to improve your safety program.

So, now that you have the facts in front of you, will you be taking the time to develop a workplace safety program?

Start Saving on All Your Commercial Insurance Needs

To learn more ways to save on workers compensation insurance and all your commercial insurance policies, call American Insuring Group at (800) 947-1270 or (610) 775-3848, or contact us online.

Our independent agents will compare rates and policies among lots of competing insurance providers to get you the right policy at an unbeatable price.

Click or call today!

Often when the topic of reducing workers compensation (WC) insurance costs comes up, pharmaceutical costs are the focus. That’s no surprise when you consider that the “total workers’ comp annual pharmacy spend is approximately $3.6 to $4.1 billion,” according to a CompPharma Survey.

Looking at pharmaceutical costs is a great place to start if you want to control WC spending without sacrificing the quality of medical care your injured workers are receiving.

Here are 5 Steps to Help You Save

#1. Educate yourself, providers, and patients about pharmaceutical options

For example:

• Lidocaine gel or cream - an anesthetic that is used to treat irritation, soreness, and itching from certain skin conditions - is about half the cost of Lidoderm – a lidocaine patch.
  
  

• The average cost of Evzio - a prescription medicine used for the treatment of an opioid emergency such as an overdose - is $3,380.69 higher than the combined price of Narcan, Naltrexone, and Naloxone (alternatives to Evzio), according to Express Scripts.
  
  
• Before approving an ADF (Abuse-Deterrent Formulations), which are not typically included in WC formularies, determine if the patient is at risk of abuse and if a more traditional (and often less expensive) opioid may be safe for them.

#2. Use generic instead of brand-name medication whenever possible

On average, the cost of a generic drug is 80 to 85 percent less than its brand name equivalent. According to the Federal Drug Administration (FDA), “FDA requires generic drugs to have the same active ingredient, strength, dosage form, and route of administration as the brand-name drug. The generic manufacturer must prove its drug is the same (bioequivalent) as the brand-name drug.” According to Express Scripts, prescribers often turn to brand-name medications out of “habit, lack of awareness of available alternatives, or patient requests.”

#3. Avoid physician-dispensed drugs

First, there is the concern that – due to incomplete drug histories and lack of safety checks – physician-dispensed drugs may not be safe for injured workers. Some states have rules in place for pricing and dispensing of physician-dispensed drugs, and, according to Express Scripts, “Physician-dispensed drugs cost $109.19 more than drugs dispensed by pharmacies.”

#4. Stay with in-network pharmacies

Prescriptions that are filled through third-party billers or out of network pharmacies are more expensive because they incur additional costs and do not add any value, according to Express Scripts

#5. Closely review prescriptions for specialty medications

The cost of specialty drugs is less than 1 percent of drugs used by injured workers, but accounted for 5.9% of total spending in 2016, according to Express Scripts.

Opioid Prescriptions: the Most Expensive and Most Utilized Class of Drugs in WC

Express Scripts reports that more than 50 percent of injured workers had an opioid prescription last year and 25 percent used opioids for 30 days or more in 2016. Opioids accounted for 26.6 percent of per-user-per-year (PUPY) spend and 24.3 percent of PUPY utilization among Express Scripts clients.

And it isn’t just the financial cost of opioids that make it a critical topic; it’s also the human cost of the opioid epidemic. The number of overdose deaths involving opioids (both prescription opioids and heroin) quadrupled since 1999, and today ninety-one Americans die every day from an opioid overdose, according to the Center for Disease Control and Prevention.

Some injured workers are taking a dangerous combination of opioids and other drugs. Opioids should be used based on evidence-based guidelines in acute phases of pain, not for chronic pain. It’s essential that injured workers understand the risks and benefits of opioids.

For more information on the opioid epidemic and the impact on insurance costs, see our infographic.

Approved Drugs for Workers Compensation Insurance

Several states have adopted legislation mandating a drug formulary - a list of prescription drugs created by a committee of physicians, nurse practitioners, and pharmacists used by practitioners to identify drugs that offer the greatest overall value – for workers’ compensation. In Pennsylvania, there is a bill in the House requiring drug formulary for WC as of this writing.

Call Us for More Information, and to Save on WC Insurance! 

A little bit of knowledge goes a long way to saving money on your WC Pharmacy spend without risking the health of your injured employees, and since American Insuring Group specializes in workers compensation insurance, we’re a fountain of knowledge.

Give us a call at (800) 947-1270 or (610) 775-3848, or contact us online. Pick our brains and let us show you how we can help you lower your workers comp insurance costs!

It’s your responsibility as an employer, to pay close attention to your workers compensation insurance claims. The majority will be legitimate claims that your employees are entitled to. But even one fraudulent claim can adversely impact your bottom line.

There are important red flags you can watch for to identify possible workers compensation fraud. Here are ten red flags. Seeing just one red flag probably isn’t cause for alarm, but if you see multiple red flags on one workers’ compensation claim, it’s a good idea to bring it to your adjuster’s attention.

Ten Workers Compensation Fraud Red Flags

#1. Questionable Incident Description

An injured employee should be able to describe the incident – what happened, how, and when - with a fair amount of detail and clarity. The details should be consistent and not change as you ask questions or when the employee describes the incident to someone else (doctor, adjuster, employer). If there’s more than one medical report, the details of the event should be the same, and the nature of the injury should be consistent with the type of work the employee performs.

#2. Lack of Witness Corroboration

If the employee usually works around others, there should be a witness, and the witness account of the accident should match the employee’s description of the accident. If the witnesses are all close friends of the employee making a claim or if the employee’s co-workers express uncertainty that the accident occurred, it may be a red flag.

#3. Delayed Reporting

Injured employees usually report their injury immediately – not days or even weeks later.

#4. Disgruntled Employee

Is the employee unhappy with his job or employer? When a workers’ compensation insurance claim is made, check if the employee was recently demoted or passed over for a promotion, if his evaluations are less than stellar and he’s in danger of termination, or if he is scheduled to be laid off. An incident immediately before a strike, plant closing, or end of seasonal employment may be a red flag.

#5. Early Morning Claims

If the employee reports an incident that occurred over the weekend or very early in the morning before the supervisor and other employees have arrived, it could be a red flag.

#6. Inability to reach the injured employee

The employee should provide his address – not a PO Box and not a friend’s address – and you should be able to contact the injured employee. If you find they aren’t home during regular working hours or if you’re always told he’s sleeping or can’t be disturbed, it could be a red flag.

#7. Shaky Finances

If an employee is having financial issues, he may see a workers’ compensation claim as a way out. Find out if the employee has financial problems, is nearing retirement, is in the middle of a divorce, or if they took a lot of time off just before the injury. Check if the spouse is working or receiving any of these payments: workers’ comp benefits, disability, welfare, or unemployment. If the employee asks about a settlement early into the process or applies for social security benefits before the incident occurred, that could be a red flag.

#8. Medical Care

Watch out for subjective injuries - such as soft-tissue and emotional - or injuries that seem to move from one body part to another; frequent changes in physicians or inconsistencies between employee and physicians’ reports; or missed doctors’ appointments or refusal of diagnostic testing. Carefully examine the medical reports to make sure there aren’t any whiteouts, and it doesn’t look like it’s been photocopied multiple times. Most employees don’t have extensive knowledge of the medical or insurance field. If he does, it may be a red flag.

#9. Inconsistent Physically Ability

An injured employee who is out of work on workers’ compensation should not be able to do similar activities to what he was doing at work. So look for evidence that he is performing those activities outside of work such as callused or grimy hands, medical reports that use adjectives like “muscular” or “tanned.”

#10. Over-eager

If the employee is pushy to settle the claim or has an attorney letter of representation dated the day of (or even before) the injury, it could be a red flag.

Final Advice: Don't Assume Insurance Fraud, But ... 

Don’t go into every workers compensation claim assuming there’s fraud. The majority of claims are legitimate. But at the same time, don’t be blind to the red flags that may indicate fraud. If you see multiple red flags, let your adjuster know. It may just help you save on your workers’ compensation costs.

Remember the Easy Way to Save on Workers Comp Insurance!

To learn more about workers compensation insurance, call the American Insuring at (800) 947-1270 or (610) 775-3848, or contact us online.

And remember, the easiest way to save on workers comp insurance is to buy it from an independent agent like those at American Insuring Group! We shop competing insurance providers, matching their policies to your needs, and identifying the best value for your particular situation. Get the right coverage at a great price. Call or click today to get started!

Hearing is one of those things that many people take for granted … until it’s gone.

A Chronic Condition

Hearing loss is the third most common chronic physical condition in American adults – following hypertension and arthritis. Hearing loss is even more common than vision trouble.

Approximately 11% of US workers have hearing difficulty, and about 24% of that hearing difficulty is caused by occupational exposures according to the National Institute for Occupational Safety and Health (NIOSH).

Hearing loss can also lead to miscommunication and accidents, potentially harming employees while driving up workers compensation insurance costs.

20 Million in Workforce Affected

There are more than 20 million people in the U.S. workforce currently experiencing hearing loss, and it’s affecting their jobs and costing businesses money. Any worker can suffer work-related hearing loss, but the top industries include construction, carpentry, mining, entertainment, military, and agricultural according to Healthy Hearing.

Impact of Hearing Loss

According to the CDC, Hearing loss can lead to miscommunications and depression. It has also been associated with cognitive decline and heart problems. Hearing loss can affect safety within the workplace, and the Better Hearing Institute found that workers with hearing loss are five times more likely to take sick days due to severe stress.

Epic Hearing Healthcare says, “… when workers have trouble following conversations, misunderstand what is being said, or pretend to hear things that they don’t hear, it can negatively affect the worker’s productivity and the company’s bottom line. Untreated hearing loss affects companies – whether through lost productivity or increased healthcare costs.”

Causes of Hearing Loss

The causes of hearing loss in the workplace include loud noises and chemicals that cause damage to the inner ear (ototoxic chemicals). When sound reaches 85 decibels or higher or if a person needs to raise their voice to speak to someone who is three feet away, noise is considered potentially harmful. Ototoxic chemicals include organic solvents like trichloroethylene, heavy metals like mercury and lead, and asphyxiants like carbon monoxide.

Approximately 30 million U.S. workers are exposed to dangerous noise levels or ototoxic chemicals.

How To Prevent or Minimize Hearing Loss

The good news is that much of this hearing loss is preventable. NIOSH has created a hierarchy of controls:

1. Prevent or contain the escape of the hazardous workplace agent at its source (engineering control),
2. control exposure by relocating the worker to a safe area (administrative controls),
3. and control the exposure with barriers between the worker and the hazard (personal protective equipment).

Here are a few simple steps recommended by the CDC to reduce your employees’ risk for hearing loss:

1. Use quieter equipment and keep equipment well maintained and lubricated.
2. Put a barrier between employee and the source or enclose the source completely
3. Increase distance between employee and source
4. Reduce employee’s time in noisy areas
5. Provide and enforce the use of hearing protection in noisy areas.
6. Educate your employees about noise hazards

Here are tips to reduce hearing loss due to exposure to ototoxic chemicals:

1. Use a less-toxic or non-toxic chemical
2. Provide and enforce the use of gloves, eye protection, respirator and other protective equipment as appropriate.
3. Follow all chemical safety instructions.

Hearing Loss Prevention Program Benefits

According to the CDC, “A successful hearing loss prevention program benefits both the company and the affected employee. Employees are spared disabling hearing impairments, and evidence suggests that they may experience less fatigue and generally better health. Ultimately, the company benefits from reduced medical expenses and worker compensation costs. In some cases, there may be improved morale and work efficiency.”

Contact Us For Advice on Reducing Workers Compensation Insurance Costs 

To learn more about workplace safety and ways to save on workers compensation insurance costs, give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or Contact Us Online. We specialize in workers comp insurance for employers in Pennsylvania, Delaware and New Jersey.

Our independent agents will shop and compare competing insurers to find a policy that meets your needs at the best price possible. Contact us today to learn more!

Some companies believe that taking the time to develop a return-to-work (RTW) program for injured employees costs more than its worth.

Some don’t think they have enough injuries to justify the cost of an RTW program, or they don’t think they have any “light duty” jobs available.

Some employers just don’t like the idea of paying an employee their full salary for doing light-duty work.

Studies Prove Return-to-Work Programs are Effective

But 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. Return-to-work programs save employers on medical costs, lost time days, and workers compensation insurance costs. These programs can even reduce the number of lawsuits, wage replacement costs, and productivity losses.

The longer an injured employee is out of work, the less likely they’ll be to return to work and the more it costs the employer. Return-to-work programs reduce the length of claims and help injured employees recover more quickly.

RTW programs show that the employer cares about the well-being of the employer and wants to help them get back to work. And getting an employee back to work can help lift the injured employee’s spirits and the morale of their co-workers.

Keep Your RTW Program Simple and Cost-Effective

Despite common misconceptions, back-to-work programs don’t need to be costly or complicated.

First, you’ll want to work with your managers, supervisors, and insurance agent to ascertain if specific jobs are more prone to injuries, approximately how many injuries occur within your company each year, and how your injury stats compare with others in your industry.

Once you have this information, work with your insurer and possibly a trusted physician to develop a return-to-work program that fits your company.

Here are 3 Components of an Effective Return-to-Work Program:

1. The Right Medical Providers
   You want to find medical providers who are on the same page as you. You want them to focus on what an injured employee can do, rather than what they can’t do, and you want the provider’s focus to be on safely returning the employee to work as quickly as possible.
   
   
2. Communication
   Every employee should know that there is a return-to-work program in place and that it is followed. They should be familiar with the details of the program. And all employees should understand that the company’s goal is to return an injured employee to work as soon as it’s safe to do so – even if that means a light-duty job.
   
   
3. Alternative Jobs
   You should have a list of light-duty jobs that may be appropriate for someone who is injured. Most companies have tasks that need to be done or activities that once completed could make other jobs easier or improve production, but these tasks or activities aren’t done because there isn’t time or manpower to do them. These tasks may be perfect for an injured employee. When the time comes, discuss the possibilities with the injured employee to see what would be a good fit with their abilities and their medical restrictions.

Taking the time to develop a return-to-work program for your company – no matter how big or small it is – can help your business reduce costs.

We Can Help You Lower Your Costs

American Insuring Group can assist you in creating an effective return-to-work program that works for you and your employees.

Our Independent Agents can also help lower the cost of your Workers Compensation Insurance. So give us a call at (800)947-1270 or (610) 775-3848 or contact us online to start saving.

Trust… What is trust? Merriam Webster defines it as “one in which confidence is placed” or “assured reliance on the character, ability, strength, or truth of someone or something.”

But what does trust have to do with workers’ compensation claims? EVERYTHING!

Studies have found that the biggest single factor that determines the success or failure of a workers’ compensation insurance claim is trust between the injured employee and his or her employer. And that trust (or lack of trust) begins as soon as the claim is reported (often before).

Workers Compensation Insurance Fraud is Rare. Surprised? 

Now, you may be thinking that there are so many cases of Workers Compensation Insurance fraud that you can’t trust anyone. We have an interesting statistic for you: studies show that only 1 to 2 percent of all workers' compensation claims are fraudulent. That means 98 to 99 percent are legitimate. So, yes there should be a thorough investigation of every claim, but you should also give your employees the benefit of the doubt. After all, trust is a two-way street.

How to Build Trust

Here are two areas that employers should focus on when trying to develop trust, plus one magic question that can help lead to a mutually successful claim.

#1. Work on The Employee / Supervisor Relationship

Research has shown that a supervisor’s response to an injured worker at the moment the claim is reported is key to building trust, and once trust is lost, it’s very difficult (if not impossible) to get it back.

If the supervisor responds with blame or anger by saying something like “What did you do to cause the injury?” there will be an immediate lack of trust. Perhaps even worse is expressing apathy with something like “You’re not hurt; get back to work.” Both of these show a lack of trust in the employee and puts them immediately on the defense.

If the supervisor responds positively by taking every workers’ compensation claim seriously and by showing genuine concern for the employee’s well-being, trust is built. And with trust you will have a significantly better claim outcome.

Supervisors should continue to leverage that trust by following up with a call or a visit to the hospital the day of the injury to let the injured employee know how sorry they are that he or she got hurt and how eager they are for the employee to return to work. Follow this up with a get well card signed by the supervisor and the injured employee’s co-workers. Again, say something like, “We’re so sorry that you got hurt. We look forward to seeing you back at work.”

The supervisor should continue to solidify that trusting relationship over time with weekly conversations reaffirming that they care about the employee’s well-being. These discussions also allow the supervisor to assess the attitude of the injured employee, how their medical treatment is going, and how their transitional duty job (if there is one) is going.

#2. Work On The Employee / Insurance Adjuster Relationship

First impressions are crucial. If you present a positive reaction to an injured employee during the first interaction, it’s much easier to build that trust. The adjuster should avoid using insurance jargon, such as “adjudication” and avoid calling the injured worker the “claimant."

And remember that this is probably the employee’s first workers comp insurance claim, so they probably don’t understand the process, what is going to happen, or what they need to do. It’s up to the adjuster to guide them through the process as a trusted advisor. If the injured employee believes their rights are not being protected, they will call an attorney, which often makes a claim even more complicated and more costly.

#3. Ask The “Magic” Question

One of the most powerful questions you can ask an injured employee is, “Do you think you will be back to work within four weeks without any restrictions?” If they say no, ask them why and offer additional resources and support. If they answer yes, they’ve set the expectation in their mind, which will drive them back to work more quickly. This question helps builds trust and should be asked with every Workers’ Compensation claim.

This may sound like a lot of work, but if you want to resolve workers’ compensation claims quickly and minimize your workers’ compensation insurance claims costs, these are necessary actions.

Contact Us To Learn More About Workers Comp Insurance 

To learn more about saving on workers compensation insurance, contact American Insuring Group online or call at (800) 947-1270 or (610) 775-3848.

Our independent insurance agents are motivated to help you save on the best workers comp plans from reliable insurers.Best of all, as independents we are free to shop among lots of competing insurance providers, so you can be confident of getting a great price on the right coverage!

For helpful tips and plenty of insightful blog posts on the topic, visit our Workers Compensation Insurance page.

The majority of workers’ compensation insurance claims are legitimate, and if an employee is injured on the job, they are entitled to the medical care and indemnity benefits stated in the workers’ compensation statutes. Unfortunately, there are also a number of fraudulent workers’ compensation claims every year.

Workers Compensation Insurance Fraud Statistics

The National Insurance Crime Bureau (NICB) estimates that workers’ compensation insurance fraud costs the insurance industry $7.5 billion every year, which in turn drives up the cost of workers’ compensation premiums. This doesn’t even take into account the cost of replacing the “injured” employee, training a new employee, overtime, and even a decrease in employee morale and productivity.

“Workers’ comp fraud is a large crime in America today,” according to the Coalition Against Fraud Insurance. “Scams are forcing premiums higher — draining business profits and costing honest workers their pay and jobs.”

Tips for Investigating Workers Comp Insurance Claims

Yet, many employers don’t investigate workers’ compensation claims properly. There is one simple thing every employer can and should do immediately following an accident or injury: collect written incident reports from the injured employee and any witnesses.

The injured employee should provide a written description of the incident including details of the accident, what caused the injury, the nature and scope of the injury, and what the employee thinks could be done to prevent the accident from happening again because.

Here’s why:

1. Immediately following an incident, the employee should be able to recall the accident or injury more accurately than they could months or years later.
   
   
2. Having the details of the accident in writing will discourage the employee from embellishing the details later, and having documentation of exactly which body parts were injured, limits the employee’s ability to add additional body parts to the claim at a later time. Tales do tend to grow taller on down the line.
   
   
3. Often, if a claim is questionable, the adjuster will take a recorded statement from the employee. A written report allows them to compare the two reports to look for deviations. In this interview, the adjuster may also ask if the employee has any prior claims, accidents, and any prior injuries to the same body part.

Keeping the WC Claims Process Honest

The bottom line is that knowing that an employer has the details of the incident written in the employees’ own words goes a long way to help keep an injured employee honest.

Obtaining a written report from every witness immediately following the incident will help provide additional information about the accident and the extent of the injuries. Employers should be cautious of any accidents that have no witnesses or that the only witnesses are friends of the injured employee.

The employee’s supervisor or someone familiar with the work process should review the reports to confirm the accuracy of the information, and those reports should be given to the workers’ compensation adjuster. The employer should also provide information to the adjuster about any previous workers’ compensation claims, any other accidents or injuries the employee has incurred in the past, and any strenuous activities, sports, or hobbies the employee participates in.  

Create a Standard Protocol for Investigating Workers Comp Accidents

Having an established protocol for investigating accidents can help ensure that the proper steps are taken each time. It’s important that you react quickly to an accident or injury, capture the details quickly, and take the right actions to investigate the claim. Doing this will help limit the ability of dishonest employees to exploit legitimate workers’ compensation claims and help you keep workers’ compensation costs down.

How to Get the Best PA Workers Comp Insurance Coverage

To learn more about protecting your company against WC insurance fraud or your workers compensation insurance coverage options, you can reach us via our Contact Page or call American Insuring Group at (800) 947-1270 or (610) 775-3848.

Our independent agents are ready to help you get affordable insurance protection. We'll drive down your cost by comparing prices and coverages among lots of competing WC insurance carriers. Don't delay - contact us today and start saving!

You’ve probably heard that the United States is in the middle of an opioid overdose epidemic. Opioids - a class of drugs that include both heroin and prescription pain relievers such as oxycodone, codeine, and fentanyl - are being prescribed at an alarming rate and too often those prescriptions are leading to opioid addiction and even death. Workers compensation insurance costs are, of course, impacted by the epidemic.

INFOGRAPHIC:
The Opioid Overdose Epidemic And Workers Compensation Insurance

259 Million Opiod Prescriptions in the US?

The American Society of Addiction Medicine reported that in 2012, 259 million prescriptions were written for opioids, which is more than enough to give every American adult their own bottle of pills!

The Center for Disease Control (CDC) reported that every day, over 1,000 people are treated in emergency departments for misusing prescription opioids, and in 2014, almost 2 million Americans abused or were dependent on prescription opioids.

“Opioids were involved in the overdose deaths of more than 33,000 Americans in 2015, nearly quadruple the number from the year 2000 and more than any year on record,” according to the CDC.

The Impact on Your Workers Compensation Insurance

There is no denying that the human costs of this epidemic are tragic, but have you ever considered what this epidemic is costing your business? The CDC reports that the side effects of opioids – drowsiness, mental confusion, depression, nausea, etc. - can increase the risk of workplace incidents, errors and injury. In 2013, the estimated lost productivity for people in the United States with opioid use disorder totaled $20.4 billion and a cost of $29 billion in increased health care and substance abuse treatment.

60% of Injured Workers May be Addicted to Opiods

According to the International Risk Management Institute, Inc. (IRMI), 5,000 employees a week are injured and disabled for at least a week and pain management is often part of their treatment. The CDC reported that in 2011 approximately 25 percent of workers compensation prescription drug claim costs were for opioids. IRMI says, “While reliable data showing the proportion of injured workers that may be addicted to opioids is hard to find, it is estimated around 60 percent of all those prescribed.“

Reducing the Human and Financial Impact of Opiod Abuse

At the 2017 Workers Compensation Research Institute Conference earlier this year, experts provided two recommendations to reduce the human and financial impact of this epidemic.

1. Mandate for Physicians to check Prescription Drug Monitoring Data

Kentucky, which was has been at the epicenter of the opioid drug problem and opioid overdose deaths, became the first state (2012) to require physicians to search patients’ prescription drug histories on an electronic database - Prescription Drug Monitoring Program (PDMP) - before prescribing opioid painkillers, sedatives or other potentially harmful and addictive drugs. According to a former employee at the Kentucky Department of Workers Compensation Claims, this one step had the biggest impact. Since then, fifteen more states – including Pennsylvania – have instituted the same mandate.

2. Alternative Pain Treatment

The current medical model for the treatment of pain isn’t working because it doesn’t consider the biopsychosocial factors of pain management. This includes “biological factors (genetic, biochemical, etc.), psychological factors (mood, personality, behavior, etc.), and social factors (cultural, familial, socioeconomic, medical, etc.),” according to John W. Santrock, Ph.D. Some popular options for pain management include mindfulness and Cognitive Behavioral Therapy (CBT).

When it comes to Workers’ Compensation claims taking a collaborative approach that includes a variety of experts, different pain management approaches, and the injured worker has shown to be more effective in reducing medical costs and in getting employees back to work more quickly.

Don't Overpay for Worker's Compensation Insurance - Contact Us

To learn how we can help you save on workers compensation insurance, contact American Insuring Group online or call at (800) 947-1270 or (610) 775-3848. Our independent insurance agents will check for the best rates among many competing insurance carriers. You'll get a quality policy at a geat rate.

Contact us today to start saving!