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Workers' Compensation Insurance

Workers' Compensation Insurance is a type of small business insurance that is mandatory in most states, and covers employees for work-related injuries. A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident or injury, while also protecting the employer against accident-related lawsuits. 

What About Dishonest Worker's Comp Claims?

Unfortunately, there are dishonest people in this world, and there are times when a Workers’ Compensation claim should be denied, such as when the employee isn’t hurt on the job or it’s an old injury. 

As many states begin taking a closer look at denials of workers’ compensation claims, now is a good time to evaluate how your company is handling workers’ compensation claims.

Workers' Compensation Claims Processing Tips

While state laws vary, there are some important best practices to follow:

• Keep detailed written documentation about the incident.
• Understand the claim forms, timelines, and the correct state agency to send the paperwork to.
• Ensure that all information on those forms is accurate.
• List a specific legal reason explaining why the claim is being denied and the basis for that denial.
• Provide instructions to the employee about steps he or she can take if they disagree with the denial.

Here are some practices to avoid:

• Don’t simply state, “The injury did not take place. Denied.”
• Don’t disclose Protected Health Information (PHI) without written permission to do so or if required by law.

No One is Perfect. If a mistake is made, here are some best practices to follow:

• Don’t ignore the mistake. Correct it.
• Cooperate with state agencies. 
• Provide complete and detailed responses.
• Continue to keep detailed written documentation.
• Pay close attention to timelines.
• If you aren’t sure about something, consult an attorney.

No business wants to pay penalties for Workers’ Compensation claim denials, so following these best practices can help your business avoid or minimize those penalties.   

How to Get a Great Deal on Worker's Comp Insurance 

American Insuring Group, Ltd. offers cost-effective worker's compensation insurance from a great variety of competing insurance companies, enabling you to get a great deal on high-quality WC insurance. 

For more information about Workers’ Compensation insurance, claims, or denials, contact American Insuring Group at (800)947-1270 or (610) 775-3848. 

Workers’ Compensation claims cost American employers $77.1 billion in 2011. Traditionally, one of the only ways for employers to decrease workers’ compensation costs was to offer proactive safety measures to reduce the number of claims.  This is still an important practice, but for years, many insurance agents have suspected that an employer offering voluntary accident or disability insurance will see a decrease in the frequency and expense of workers’ compensation claims.   

Accident Insurance - Survey Says…

A survey conducted in November 2013 by Lieberman Research Worldwide has confirmed those suspicions.  The survey of 600 U.S. Employers found that more than 42% of all businesses offering their employees access to voluntary accident insurance noted a decline in their workers’ compensation claims.  The survey found that 55 percent of large companies and 34 percent of small and medium sized companies reported declines.  The results were nearly identical for those employers offering voluntary disability insurance.

What are Accident and Disability Insurance?

Accident insurance helps pay out-of-pocket expenses that aren’t covered by major medical insurance.  These expenses can add up quickly after an accidental injury.  The money can be used for medical expenses, such as medical examinations, or it can be used for other expenses, such as transportation. 

Disability insurance helps protect an employee’s paycheck in the event of an accident.  Those benefits can be used for any purpose, including rent, food, or car payments – living expenses that continue to come even when the paycheck doesn’t. 

Interested in Reducing Workers Compensation Claims?

This same survey found that 58 percent of employers do not currently offer voluntary accident insurance and 50 percent do not offer voluntary disability insurance. 

If you’re interested in offering your employees a more comprehensive benefits package and possibly reducing the frequency and expense of workers’ compensation claims, contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more.

Worker's compensation insurance, job classifications, job risks and insurance premiums are all related. Job classifications, which are based on specific ratings and descriptions for all types of jobs, are determined by the National Council on Compensation Insurance (NCCI), the insurance industry’s ratings bureau.  There are more than 600 different job classifications, and more are being added all the time, so it isn’t surprising that 30-35 percent of businesses have classification errors. But have you considered the potential impact on your business insurance costs that an erroneous job classification can bring?

Workers' Compensation Insurance and Risk-Based Job Classifications

Why should you care?  These ratings, based on an estimated level of risk, help determine how much Workers’ Compensation premiums you will pay for each job classification.  The following misclassifications are examples of mistakes that can significantly increase your Workers’ Compensation premiums:

• An administrative assistant who sits at her desk all day is classified at the same job risk level as a tree trimmer who spends most of her day swinging through the trees.
• A dispatcher who spends most of his time on the phone is classified at the same job risk level as a driver who spends most of his time behind the wheel of a tractor trailer full of flammable materials. 

How can you avoid misclassifications?

• Review your NCCI Classifications
• Don’t use the same classification for everyone in your company.  Classify each worker individually.
• Ask your insurance agent how jobs are being classified.
• Read your policy.
• Don’t let the insurance agent copy from an old policy from year to year. Things change; your business changes. 

Don’t wait for your workman's compensation insurance premiums to skyrocket to discover something is off kilter.  For more information about job classifications and controlling workers’ compensation premiums, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.

A Leading Cause of Workplace Injury

OSHA reports, “Lifting heavy items is one of the leading causes of injury in the workplace.”  This is particularly true in the healthcare industry.  Improper lifting can cause back sprains, muscle pulls, wrist injuries, elbow injuries, spinal injuries, etc. 

Sharing the following smart lifting practices with your employees will not only help improve the health of your employees, but also help reduce the number and cost of lifting-related workers’ compensation insurance claims.

There are several factors that contribute to lifting injuries:

• Weight of Objects
• Awkward Postures
• High-Frequency and Long-Duration Lifting
• Inadequate Handholds
• Environmental Factors

Avoid Workers Comp Injuries - Follow These Safe Lifting Tips.

Here are some tips from OSHA to help your employees avoid injury from lifting:

• Limit the weight you lift to no more than 50 pounds.  When lifting heavier loads, use two or more people to lift the load.
• Use ramps or lift gates to load items into trucks rather than lifting them by hand.
• Use your legs instead of your back when lifting an item from a low location.
• Avoid twisting, especially when bending forward while lifting.  Turn by moving the feet rather than twisting the torso.
• Keep your elbows close to your body and keep the load as close to your body as possible.
• Break down loads into smaller units and carry one in each hand to equalize loads.
• Rotate tasks so employees are not exposed to the same activity for too long.
• Take regular breaks and split tasks into shorter segments.
• Move materials from containers with poor or no handholds into containers with good handholds.
• Wear proper personal protective equipment to avoid finger injuries and contact stress.
• Adjust work schedules to minimize exposure to extreme temperatures.
• Drink lots of water to avoid dehydration in excessive heat.

More Safe Lifting Tips

For more information about safe lifting techniques, go to https://www.osha.gov/SLTC/etools/electricalcontractors/materials/heavy.html#awkward

Be Prepared for the Unexepected with Quality Workers' Comp Insurance

Following these tips will help ensure the safety of your employees and reduce workers’ comp claims; however, injuries may still happen. 

The right workers' compensation insurance will protect your business from these unforeseen incidents. 

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848.  We can help with all of your business-related insurance needs, including workers’ compensation.

What a Tragedy Taught us About Fire Safety & Commercial Insurance

On March 25, 1911, the US witnessed one of the deadliest industrial disasters in American history – the Triangle Shirtwaist Factory Fire in New York City.  The fire resulted in the deaths of 146 garment workers – 123 women and 23 men – who were working on the eighth, ninth, and tenth floors.  Some died from the fire, but many were killed by smoke inhalation or falling or jumping to their deaths.   

This horrible tragedy led to legislation that improved worker safety standards, including better building access and egress, fireproofing, fire extinguishers, alarm systems, and automatic sprinklers.  More than one hundred years later, the lessons learned from this tragedy still apply. 

Here are some reminders on how to avoid workplace fires and injuries, thereby reducing the long-term cost of your commercial and workers comp insurance by minimizing both the number and severity of your insurance claims.

6 Tips to Avoid Workplace Fires & Injuries

Give them a way out. If the doors to the stairwells and freight elevators in the Triangle Factory weren’t locked to prevent theft, many of the 146 workers who perished would have survived.

Enforce smoking bans. Although smoking was banned on the Triangle Factory floor, it was common knowledge that workers often snuck cigarettes in.  The suspected cause of the Triangle fire was a discarded match or cigarette.

Quickly get rid of scrap material. Two months’ worth of highly flammable fabric cuttings (hundreds of pounds) were in the scrap bins in the Triangle Factory.

Keep them separated. Fabric hanging close to the scrap bins helped the fire spread more quickly.

Make it easy to spread the word. There were no working telephones on the ninth floor of the Triangle Factory, so workers there didn’t know about the fire until it had reached their floor.  Working, audible fire alarms and emergency communication systems could have made all the difference.

Regularly inspect your fire escapes. Twenty people died when the flimsy fire escape at the Triangle Factory collapsed.

Be Prepared with the Right Commercial Insurance

Contact an American Insuring Group agent at (800) 947-1270 or (610) 775-3848 to ensure that you have the proper workers compensation insurance and commercial insurance to protect both your employees and your business. As independent agents we offer insurance solutions from over 25 competing insurance companies to give you the best options at the best price. Serving Philadelphia, Reading, Lancaster, Allentown, York, PA and far beyond. Call today.

Electrically-Related Worker's Comp Injuries

Electrical hazards cause more than 200 electrocutions (death by electric shock) and 4,000 workplace injuries each year, costing businesses millions of dollars in Workers’ Comp claims, fines, medical costs, litigation, lost business and equipment cost.  “While electrical hazards are not the leading cause of on-the-job injuries, accidents, and fatalities, they are disproportionately fatal and costly,” according to the Electrical Safety Foundation International (ESFI). 

The good news is that most electrically-related injuries and the resulting workers’ compensation and fire-related rebuilding costs can be avoided with a comprehensive electrical safety program. That's good news for electrical contractors and other businesses whose employees perform electrical maintenance and installation services.

12 Ways to Avoid Electrical Injuries and Reduce Worker's Compensation Insurance Claims

Whether you’re in an office, a warehouse, or a manufacturing facility, there are things you can do to avoid electrical injuries and costly worker's comp claims:

• Avoid using electrical equipment in unsuitable conditions, such as a wet or dusty workplace.
• Ensure electrical panel doors are freely accessible and unblocked by furniture or clutter.
• Tuck cables and cords away so they don’t create tripping or slipping hazards.
• Place electric cords where there is air circulating to prevent overheating.
• Keep electrical cords away from heat sources, such as radiators and space heaters.
• Ensure that the electrical load of equipment such as computers, printers, scanners, faxes, shredders, and telephones is spread over several circuits.
• If you are using extension cords as a permanent source of power, consider having additional circuits installed.
• Plug office electronics into a surge protector.
• Ensure grounded (3-prong) appliances and equipment are plugged into grounded outlets.
• Avoid spilling beverages on electronics, and if it happens, be careful, as electrically powered devices may become live to the touch if they become wet.
• Pull on the plug, not the cord, when unplugging equipment.
• Get rid of old, unsafe or poorly maintained equipment, such as old coffee makers, radios, lamps, and space heaters.

Improve Electrical Safety in your Workplace

ESFI offers the following steps:

Step 1: Awareness

What does electrical safety mean to you?  The How Do You Know? video modules demonstrate how safe electrical practices are vital to everyone in your business.

Step 2: Assessment

Are you confident that your company's electrical safety program is up-to-date and comprehensive?  Evaluate your program with ESFI's Electrical Safety Self Assessment. It's an easy to use tool that will help you review and analyze your company's electrical safety practices related to facilities, personnel, and procedures.

Step 3: Improvement

Once you identify areas that need to be addressed, what's the next step?  ESFI has compiled a library of safety resources and links to help you find the information you need.

Worker's Compensation Insurance - Do You Have the Right Coverage?

Following these suggestions will help ensure the safety of your employees, reduce workers comp claims, and avoid fire-related business costs. 

However, even the best laid plans sometimes fail.  When that happens you need to have the right insurance to protect your business from those unforeseen incidents.  Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 for help in obtaining the right worker's comp insurance to properly cover your business from loss.  We can help you with all your business-related insurance needs.

Do you believe that your employees are one of your most valuable assets?  Do you think of your employees as an investment rather than an expense?  

The fact is that happy, engaged, and loyal employees work harder, provide better customer service, and stay with you longer. That's why great benefits, especially health insurance, can be crucial to attracting and retaining the best employees.

Consider these facts:

• The average cost of recruiting, hiring and training a new employee is close to $4,000, according to an article in Entrepreneur Magazine.
   
• The companies listed on Fortune’s ‘100 Best Companies to Work For’ list experienced stock prices that rose an average of 14% per year from 1998-2005, compared to 6% for the market as a whole, according to a study from the Jackson Organization. That's more than double the norm, and suggests a strong link between employee satisfaction and company performance.

If you truly value your employees, it's important to do more than just say that you value them, so prove it to them via their health insurance, life insurance, and other benefits!  If you don’t show you care about their needs, they'll be less motivated to care about your company or their work, and your bottom line will suffer as a result.  If you want to stand out as an employer and attract real talent, it’s important to do what you can to ensure that your employees are healthy and happy – both physically and financially.

Start with a Good Employee Benefits Package

A good employee benefits package is a great place to start.  Unfortunately, during these rocky economic times, many companies are tempted to cut employee benefits.  This “cost-saving” measure will most likely backfire on you by creating less motivated employees and a higher turnover rate.

Mandatory Employee Benefits

While some benefits are optional, all employers are required to provide employees with the following benefits:

• Give employees time off to vote, serve on a jury and perform military service.

• Comply with all workers' compensation requirements.
   
• Withhold FICA taxes from employees' paychecks and pay your own portion of FICA taxes, providing employees with retirement and disability benefits.
   
• Pay state and federal unemployment taxes, thus providing benefits for unemployed workers.
   
• Contribute to state short-term disability programs in states where such programs exist.
   
• Comply with the Federal Family and Medical Leave Act (FMLA).

Providing additional benefits, such as health insurance, dental, vision, and life insurance plans will attract better-qualified candidates, ensure higher retention rates, and increase your bottom line. 

We Can Help You Craft a Better Employee Benefits Package

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to discuss affordable health, life, and workers compensation insurance plans to make yours a better company that attracts and retains the high-caliber talent you need to excel in the marketplace.

Be honest!  Did you make any New Year’s resolutions this year?  If you did, you weren’t alone.  According to Statistic Brain, 45% of Americans “usually” make New Year’s resolutions, and according to Constant Contact®, 53% make business-related resolutions. 

Statistic Brain found that losing weight is the number one New Year’s resolution for 2014 – no surprise there.  And number two?  The second most popular resolution for 2014 is – drum roll please - getting organized.  Now if losing weight is on your list, there are many other organizations more suited to helping you than an insurance company (unless you want to know how weight could possibly affect your life insurance premiums).  However, a good insurance agent can help get your business organized.

Getting organized isn’t just about “A place for everything, everything in its place,” as Benjamin Franklin said.  It’s also about having everything you need so your business can run smoothly and profitably.  The right business insurance can help your business do just that - and protect it by minimizing financial risks associated with unexpected events.

Commercial Liability Insurance

First, you should consider liability insurance to protect your company’s assets in the event that someone gets hurt on your property or you (or one of your employees) cause property damage or injury.  Even if you doubt you’ll ever face a claim, we live in a litigious society; purchasing liability insurance is a wise and affordable investment.  There are a wide variety of commercial liability insurance options such as general liability insurance, product liability insurance, and error and omission insurance. 

Commercial Property Insurance

Commercial Property Insurance is another insurance to consider.  It covers everything related to the loss or damage of company property due to events such as fire, windstorm and hail, smoke damage, vandalism, theft, and more. “Property” may include lost income, business interruption, and company papers, as well as equipment and buildings.

Commercial Vehicle Insurance

If you use a vehicle – whether you own it or not – for any purpose other than driving to and from work, you should check your existing insurance policy to see if you need a commercial vehicle policy.  Standard vehicle insurance coverage includes bodily injury and property damage liability, personal injury protection, and physical damage to your vehicle including comprehensive and collision coverage. 

Worker's Compensation Insurance

Worker’s Compensation Insurance is mandatory in most states (including Pennsylvania), and covers employees for work-related injuries.  A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident and protects the employer against accident-related lawsuits.  

Business Umbrella Insurance

Finally, umbrella liability insurance is a type of commercial insurance that covers a small business for liability claims that exceed the underlying limits of liability coverage.  Umbrella policies are a type of commercial insurance that adds an extra layer of public liability insurance protection.  

Now is a Great Time to Review Your Business Insurance Needs

Whether “getting organized” is on your list of 2014 New Year’s resolutions or not, now is a great time to review your insurance policies to ensure that you have the right coverage to protect your business and allow it to run smoothly.  AIG would be very happy to help you with this resolution.  Contact us at (800) 947-1270 or (610) 775-3848 to arrange a policy evaluation.  Then you can sit back and enjoy your well-ordered office space, knowing that it’s protected.

Unfortunately, you’ll have to call someone else if you want help losing weight!

Workers' Compensation Insurance and Minimum Wage Increases

Everyone earning minimum wage or paying minimum wage is surely paying attention to discussions in Washington and state capitols across the country about increasing federal and state minimum wage. This is great news for those currently earning minimum wage ($14,500 a year for a full-time employee), but business owners are perhaps a little less enthusiastic at the prospect. Not only does a required increase in salaries cost more in wages, it also has the potential to cost more in workers' compensation payouts.

For or Against Minimum Wage? It's Still the Law

We all know the arguments for and against increasing the minimum wage. Whichever side you agree with, if the law changes, you need to be prepared to roll with it. If you are an employer, look on the positive side - you will be able to retain experienced workers longer, and you will have a larger (and hopefully better quality) pool of applicants to choose from,  since people who have been unemployed will now have more incentive to put their kids in daycare and drive to work for you.

Minimum Wage Down Side - For Every Silver Lining, There's Got to be a Cloud!

The drawback to people coming back to work after a long break is that newly rehired workers are more likely to get injured while they're getting back into the swing of things. Many minimum wage jobs are also the most physically demanding. Your new workers may be out of shape and just not in the "safety first" mind-frame anymore. New hires may also be afraid to make an injury claim right away, so a simple muscle strain can turn into a major issue requiring expensive surgery.

The major argument against increases in the minimum wage is the prospect of layoffs. Current employees afraid of getting laid off, either out of desperation or the urge for a little revenge, tend to make more workers' comp claims to give themselves more of a cushion while they seek new work. Spikes in claims like these can make insurance underwriters rather unhappy.

Protect yourself! Who else is going to? (Oh yeah, your insurance company!)

The best way to protect your company from these changes is to keep the lines of communication open with your insurance provider.  If they insure your workers' comp claims, they also have a stake in keeping claims as low as possible.  Also, be proactive with new recruits with drug testing, background checks, safety training, and pre-employment physicals.

Need Help Making Workers' Compensation Insurance Decisions?

We can help you keep your workers’ compensation insurance premiums and claims in line – regardless of pending changes to the minimum wage.  Call us today at (800) 947-1270 or (610) 775-3848 or Contact Us by email.

The Washington Post reported in April that federal workers compensation costs have roughly doubled since 1995, with 8.8 million Americans receiving disability benefits to the tune of $260 billion per year. Over a quarter $ trillion annually - that's a trully staggering figure.

The Post went on to claim that much of the increase may be due to the changing demographics of an aging population. Whether you buy that explanation or not, many employers fear that some employees are cheating on workers compensation insurance and staying away from work longer than legitimately needed.

Workers Comp 101: How Much Should You Trust Your Employees?

Let's face it, as with almost everything in life, things are seldom black and white. Seemingly good and honest employees sometimes do dishonest things when they feel threatened or insecure. Workers compensation can be an area where a good employee is tempted to stretch the limits of a workers compensation insurance package if your internal company policies are not balanced in such a way as to help keep the system honest and balanced.

Incentives and Disincentives to Return to Work: How Do Your Workers Comp Policies Stack Up?

Many view our national unemployment policies as lacking the common sense checks and balances required to filter out waste and abuse. Fair enough, but have you analyzed your own policies by the same yardstick? A well-balanced set of policies is one that properly provides for the needs of employees during a disability while also achieving the checks and balances that keep the system honest by removing disincentives to return to work, and removing incentives to stay out longer than legitimately needed. And that insurance principle applies as much for a small business as for a larger one.

Here are some things to consider when striving to keep your workers compensation policies properly balanced:

• How long will you hold a job open while an employee is out on disability? Is there a defined limit? Obviously a reasonable but limited time period should be the goal. In today's job market, fewer are willing to gamble with finding a new job should they exceed the period that their current position will be kept open for them.
  
  
• What percentage of an employee's salary is collected during a workers compensation event? If your policies are too generous then the incentive to stay off longer increases.
  
  
• Do you allow benefits to accrue while an employee is away from work? For example, will sick time and vacation time continue to accrue? If so, should the policy be changed?
  
  
• What about high-end benefits? If you offer special benefits such as a company car or other benefits directly related performing on the job, then consider placing them on hold until the employee returns to work.

A Workers Compensation Lesson from Ronald Reagan?

Regardless of your politics, President Ronald Reagan had a principle that served the US well in dealing with foreign policy, and one that President Barack Obama recently quoted: trust but verify. Yes, we would like to trust all employees to do the right thing when it comes to workers compensation insurance benefits. However, given that things are rarely black and white when it comes to human behavior, it is wise to craft your company polices in such a way as to verify that your hard-earned dollars spent on workers compensation costs are being wisely used and not wasted.

Need Help with Workers Compensation Insurance? 

We're here to help. We're an independent insurance agency with the resources to find the right workers comp insurance to meet your needs and budget. Click to contact us today to learn more, or call us at (800) 947-1270 or (610) 775-3848.