As was anticipated the insurance industry January 2013 changed the methodology of determining an individual employer’s experience modification factor that will change and significantly impact your workers’ compensation premiums. Thus, a company’s loss history will impact premiums more now then before, for at least three (3) years after losses occur. As a business you need to take a pro-active role in reviewing, evaluating, analyzing, and auditing your loss control, safety programs, your loss history, and EMR, as well as taking steps to employ proper claims management allowing for a more prepared approach for these changes. However, those businesses with a large number of claims (frequency), and in particular, with losses between $5,000 and $10,000, will find your company’s bottom line significantly impacted by inevitable increase in your experience modification and resultant workers compensation premiums. Depending on the size of a company, experience modification, and workers' compensation premiums could increase from about 20% to as much as 60%. Experts predict smaller accounts will be more adversely impacted since even a few losses over a three-year time frame will be very difficult to overcome. Accounts in remote areas without good medical care may also be hurt. Additionally, a higher EMR can deeply impact your ability to win contracts, since many contracts call for EMRs at or lower than 1.0.
Global Loss Control can assist you in reviewing your loss history, identifying those loss exposures, trends and point your business, management and supervised employees in the right direction to reduce and control your losses and assist with keeping your EMR in line.