Reduce Loss Experience to Control Insurance Premium
By Universal Underwriters Group's Loss Prevention Department

The most recent figures show the national average workers compensation insurance cost is almost three percent of payroll. Your actual percentage will vary, depending upon the percentage of your work force in higher-rated classifications, as well as your individual loss experience. Your loss experience determines the experience rating factor used. What can you do to control your workers compensation loss experience?

Always check a job candidate’s background prior to hiring. Require prospective employees to complete a detailed application form. Depending upon your state law, check:

Criminal records
Credit references
Previous employment references
Motor vehicle reports

Developing a positive employee attitude toward safety is one of the most important elements when it comes to safety on the job. A positive safety attitude is:

•A matter of awareness of the workplace hazards (i.e. lifting hazards, electrical and fire hazards, chemical hazards, etc.)
•The willingness to follow the proper safety procedures at all times

How do your employees develop a positive attitude about safety? Positive attitudes are the direct result of management’s commitment and involvement in the loss control program. Management should:

•Set a good example by practicing safe work habits
•Allow employees to report unsafe work practices without fear of reprisal
•Be accessible to employees
•Enforce safety rules
•Set up and attend regular safety meetings
•Make sure good housekeeping rules are followed at all times

Train and motivate employees to think and work safely. Safety training should always be a priority. Teach employees:

•About the physical and health hazards of materials they work with
•How to protect themselves from the hazards
•What to do in an emergency
•What personal protective equipment is available
•How to read warning labels on any equipment or product they use
•How to use equipment properly

Even with the best hiring procedures and employee attitudes, accidents will happen. When they do, you need to take steps to control them. Talk with your Universal Underwriters representative about what cost containment programs you can implement once an injury has occurred.

This article is provided for informational purposes only. Please consult with qualified legal counsel to address your particular circumstances and needs. Universal Underwriters Group is not providing legal advice and assumes no liability concerning the information set forth above.


For information about how Universal Underwriters Group’s Special Account Services Division can help meet the special needs of your automotive recycling business, call 1-800-840-8842, ext. 4845, visit our web site at www.universalunderwriters.com or send us an e-mail at uuic.specaccts@zurichna.com.

This article is provided for informational purposes only. Please consult with qualified legal counsel to address your particular circumstances and needs. Universal Underwriters Group is not providing legal advice and assumes no liability concerning the information set forth above.