by Grant Davis | Business Insurance, Insurance, Workers Compensation
Do You Have A Return to Work Strategy?
We’ve seen it! Your employee gets hurt on the job and cannot return to their regular position. A Return To Work program, means that your employee can return to work in a temporary, limited, or light duty capacity while they recover from their injury or illness. The goal is to return your employee to the workplace as soon as they are medically able. Workers Compensation return to work programs can benefit both the injured employee and the employer through less time away from work and lower medical costs.
A Broker at GDI Insurance Agency, Inc. can help you with a Return To Work Program. Contact us at 1-888-991-2929.
Create a Return To Work Program
- Job offers should always be made in writing and should thoroughly describe the offered position to ensure the hire is fit for all duties.
- When the job is offered, send a formal job offer package along with the offer letter. Make sure it includes all the benefits the potential employee is eligible for, including return to work policies and procedures, so there is no confusion later.
- When developing a temporary assignment for someone returning to work, find useful tasks that are not covered by other areas of the company – the goal is not to take work away from another employee.
- Create a written job description and job analysis for all transitional duty jobs. These jobs should match physical capabilities with the work that needs to be done so that they are both useful and appropriate.
- Hold employees working temporary assignments or transitional duty jobs to the same work rules as other employees. This prevents devaluation of the job by employees and sends the message that they are still contributing to the company.
- Develop and maintain a close working relationship with medical providers. Make sure they understand your business so they can help you evaluate return to work policies, procedures and cases.
- For all employees assigned to temporary work, monitor their medical health regularly. Make sure they are doing well physically and, if they are making progress, find out from their physician if they can move forward to more demanding tasks.
- Develop and maintain a close working relationship with claims adjusters. Make sure they know your return to work program, and ask them for advice and suggestions to improve it.
- Resist the temptation to turn temporary job assignments into indirect punishment. Understand that the work is therapy for the returning employee; make sure to stay positive and keep the work meaningful.
- Consider establishing a transitional duty pay rate. It will be less than what the employee would earn working their normal job, but make sure it is consistent among all employees on transitional duty.
- For return to work program employees, stay in frequent touch from the time of the return to work offer letter until they return to full working status. You should be accessible for them to be sure their return to work is progressing smoothly.
- Develop a return to work plan for every injury that results in lost time. Communicate with the employee’s doctor so you understand when and how they can progress to various work tasks.
Learn More About Workers Compensation
Download our “Money Saving Workers Compensation Tips”. This PDF is full of Workers Compensation strategies that will positively effect your bottom line.
California’s Leader in Workers Compensation Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Contact us today 1-209-634-2929 for your California Workers Compensation insurance quote!
by Grant Davis | Insurance, Workers Compensation
How To Save Money on Workers Compensation
The key to saving money on your workers compensation is more than just stopping a few accidents; it is having sound safety procedures designed to continually improve. By having an Occupational Safety and Health Administration (OSHA) compliant safety program can reduce injuries, illnesses and save Workers Compensation dollars.
A broker from GDI Insurance Agency, Inc. will do this for you and can offer additional ways to save money on your workers comp insurance.
Safety Program Goals
- Investigate near-miss incidents to prevent future accidents. Seventy-five percent of accidents are preceded by a near miss.
- Create a risk control service plan based on your workers’ compensation losses. Pay particular attention to frequency and severity of claims to craft an appropriate plan.
- Justify your risk control expenditures strategically to senior management so you receive the budget you need. Be sure they understand the importance of your company’s safety program and the money it saves in the long run.
- Based on your experience with prior claims, create a workers’ compensation cost allocation program. Budget money by examining what types of claims you’ve had over the past several years and their cost.
- Benchmark your company’s workers’ compensation performance against other comparable companies in your industry. This will help you identify areas to improve upon.
General Safety Procedures
- Protect your employees by minimizing any job hazards. You should always be evaluating every aspects of your workplace to ensure the safest environment possible.
- Prepare emergency announcements, and do test runs of emergency response systems to familiarize employees.
- Choose a practical flooring surface, not just one that looks nice. Often, the best looking floors can be the most dangerous and will be slippery when wet.
- Customize work spaces to fit each employee’s needs through ergonomic adjustments. By ensuring that an employee’s work space is tailored, you create a safer environment less prone to bodily stress or injury, and thus, less prone to workers’ compensation claims.
- Educate your employees on the safest way to lift objects. Squatting with bent knees minimizes the stress to the back, regardless of what is being lifted.
- Create a policy on distracted driving. Motor vehicle accidents account for a large percentage of work-related fatalities. Eating and drinking, cell phone use and music devices are all possible sources of distraction behind the wheel. The use of such devices could also be illegal, as more state and federal agencies crack down on distracted driving. A good policy can help prevent fatalities and limit liability for your company.
- Along the same lines, prohibit texting while driving regardless of whether or not your state specifically prohibits the practice. Texting while driving makes an employee 23 times more likely to have an accident. A federal ban prohibiting divers of commercial vehicles from texting has also been recently enacted. Create a written policy for both distracted driving and texting while driving, and have all employees sign off on it.
- Establish and enforce disciplinary measures for safety violations. There should be some type of corrective action for any employee who doesn’t abide by safety requirements.
- Train your supervisors in-house. They may have previously been trained as supervisors in general, but they need to also be trained in your particular work environment.
Learn More About Workers Compensation
Download our “Money Saving Workers Compensation Tips”. This PDF is full of Workers Compensation strategies that will positively effect your bottom line.
California’s Leader in Workers Compensation Insurance and Risk Management
As one of the fastest growing agencies in California, .GDI Insurance Agency, Inc is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Contact us today 1-209-634-2929 for your California Workers Compensation insurance quote!
by Matthew Davis MBA, CPCU, AAI | GDI Insurance, Insurance, Workers Compensation
Workers Compensation Audits
At GDI Insurance Agency, Inc., we have been inundated with countless new clients that are all suffering from similar – if not the same – issues regarding Workers’ Compensation Audits that have gone awry.
We’ve found that the majority of these insurance customers with Audit Issues are located in and around the Turlock, CA area (many of which most are businesses most local residents would recognize).
Nearly all the clients were told something along the lines of, “…the audit is what it is and there’s not much that can be done about it”, or some variation thereof.
More often than not, that type of statement is FALSE!
In nearly every instance we’ve recently come across, there have been actions that were able to be taken in order to correct inaccurate audits. If an employer’s payroll at the end of a policy year is materially greater than he/she estimated at the beginning of the policy, then an audit should be anticipated (in many, BUT NOT ALL cases).
I’ve had two cases come across my desk recently that were so incorrect that if the clients would not have come to GDI Insurance for help that they may have jeopardized their own solvency. I now feel compelled to share one of their stories.
STORY 1 – Firm Located in Turlock, CA
The firm was once a client of GDI Insurance Agency up until 2005 when they decided to utilize another broker who offered them a slight premium savings. In 2010 GDI was asked to take a look at the Workers Compensation policy as they were being given an invoice for an additional 125%+ of their quoted premium as their Audit. Their original policy was quoted right at $65,000 for the year and at the end of that year their audit from the insurance company demanded an additional $85,000.
We agreed to look into the audit and discovered that the prior agent/broker had done nothing wrong, BUT… at the same time did not take the couple of tiny steps that would have aided their client. We stepped in an discovered that the root of the audit was due to a miscommunication between the independent auditor for the company and the client’s staff revolving around operations the auditor assumed the client was performing, but in actuality never performed (or ever plans to perform).
In the end the client had higher payroll and did have to pay an amount at the end of the audit of only $4,000. The audit was decreased by 95% by our office simply looking at the material and bringing up a few points of discussion with the auditor.
Why didn’t the prior agent/broker offer to help???
It is relatively known to many insurance customers that ALL premiums paid are commissionable their agent, and in California agents can make as much as 10-12% or more commission on workers compensation policies. So the prior agent had no incentive to offer to assist the client to correct the audit as they were hoping to receive an additional $8,500+ on the policy for simply letting the audit stand incorrect.
So what are The Good, The Bad and The Ugly of workers compensation audits?
THE UGLY – Are those audits that have been paid based on incorrect information or lack of explanation to the client.
THE BAD – Are those audits that are not yet paid, but are billed based on inaccurate data.
THE GOOD – Are those audits that go by without a hitch and are understood by the customer.
If you believe you are the subject of a bad insurance audit, either for workers compensation or any other type of policy, Talk To The Experts and GDI Insurance Agency, Inc. in Turlock by calling 1-209-634-2929 or visiting us online at www.gdiinsurance.com.
Matthew Davis MBA, AAI
by Grant Davis | Insurance, OSHA
OSHA INCREASES PENALTIES
January 2, 2018 the U.S. Department of Labor issued a Federal Register notice announcing an increase in the maximum penalty amounts for violations of Federal OSHA and Regulations.
Under the new penalty structure, the maximum penalty allowed for “serious” and “other-than-serious” violations are $12,934. In addition, the maximum penalty allowed for “failure-to-abate” the violation is $12,934 each day that an employer fails to abate the specific violation. Finally, the maximum penalty allowed for “willful” and “repeat” violations is $129,336, 10 times the maximum permitted for “serious” and “other-than-serious” violations.
States that have their own occupational safety and health standards and regulations also must raise their maximum penalty amounts for violations by the same amount. Going forward, the maximum penalty amounts will be increased every year adjusted for inflation.
Businesses need to take immediate notice of these continuing increases in the maximum penalty amounts for OSHA violations. Companies seriously should consider future monetary risks associated with accepting proposed OSHA citations and penalties as written.
Contact Grant Davis at 1-888-991-2929 to get your written OSHA safety plan.
When OSHA regulations, don’t cover everything, and where there’s no specific standard, OSHA uses the General Duty Clause (GDC) of the OSHA Act as a “gap filler” in enforcement actions. The Agency often looks to voluntary consensus standards as a basis for GDC citations as well as information in manufacturer’s handbooks, and warning labels. Over the past 3 years, OSHA’s use of the GDC as an enforcement tool has increased 15% percent.
The courts have interpreted OSHA’s GDC to mean that an employer has a legal obligation to provide a workplace free of conditions or activities that either the employer or industry recognizes as hazardous and that cause, or are likely to cause, death or serious physical harm to employees when there is a feasible method to abate the hazard.
Protect Your Business from The General Duty Clause
OSHA inspectors seek to focus its resources on the most serious, unsafe and hazardous workplaces.
- No Safety Plans, Out-dated Safety Plans or No Active Safety Program.
- Imminent dangerous situations.
- Frequent accidents, catastrophes and fatalities.
- Employee complaints, referrals and follow-up visits.
- Surprise visit, planned or programmed investigations.
Find Out if You Need To Report That Incident:
OSHA PENALTY REGULATIONS
Labor Code 6401.7 (a) states that every employer shall establish, implement and maintain an effective written Injury and Illness Prevention Program (IIPP) the Department of Labor issued a rule implementing significantly higher penalties upon employers for Occupational Safety and Health Act violations.
Don’t Let OSHA PENALIZE Your Business
Avoid These Costly Fines By Preventing This From Happening to Your Business
Contact Grant Davis at GDI Insurance Agency, Inc today 1-888-991-2929.
At the bottom of each written explanation are folders that have a list of the mandatory and extra safety plans you will receive whatever your business needs in a Safety Plan Bundle.
Don’t find yourself empty handed. These high penalties and fines can easily ruin your bottom line bringing havoc to your daily business operations. This situation can happen to any business!
by Grant Davis | Business Insurance, Insurance, Workers Compensation
To save money on your workers compensation insurance starts with working with a large insurance broker like GDI Insurance.
Save Money on Your Workers Compensation
GDI Insurance Agency, Inc. represents the majority of major workers compensation insurance companies so we can get you quotes from a large number of insurance companies at one time. We also use comparative rating programs, where we can enter your information and get quotes from just about every insurance company in the state. Even the ones we don’t represent!
Premium Credits Available
Workers Compensation Insurance is driven by premium credits as high as 50% off plus your workers comp modification factor can cut your rates further. It can also raise your rates if you aren’t careful. I was sent a notice by the workers compensation rating bureau today on aa dairy I had tried to work with two years ago. Their premium is up 49% in the last two years and they have no idea why. Their modification factor went up but also their last audit wasn’t completed so it shows on the states website incomplete. Seems like a lot of money to pay for workers compensation insurance to not know why something has gone up 49%! Find out how to save money on your workers compensation below.
Below is a brief overview of some key parts you need to pay attention to if you want to keep your workers compensation rates down. Of course you can just let GDI Insurance Agency handle it for you by calling us at 888-991-2929
Safety Program Goals
- Investigate near-miss incidents to prevent future accidents. Seventy-five percent of accidents are preceded by a near miss.
- Create a risk control service plan based on your workers’ compensation losses. Pay particular attention to frequency and severity of claims to craft an appropriate plan.
- Justify your risk control expenditures strategically to senior management so you receive the budget you need. Be sure they understand the importance of your company’s safety program and the money it saves in the long run.
- Based on your experience with prior claims, create a workers’ compensation cost allocation program. Budget money by examining what types of claims you’ve had over the past several years and the costs.
- Benchmark your company’s workers’ compensation performance against other comparable companies in your industry. This will help you identify areas to improve upon.
General Safety Procedures
- Protect your employees by minimizing any job hazards. You should always be evaluating every aspect of your workplace to ensure the safest environment possible.
- Prepare emergency announcements and do test runs of emergency response systems to familiarize employees.
- Choose a practical flooring surface, not just one that looks nice. Often, the best looking floors can be the most dangerous and will be slippery when wet.
- Customize workspaces to fit each employee’s needs through ergonomic adjustments. By ensuring that an employee’s work space is tailored, you create a safer environment less prone to bodily stress or injury, and thus, less prone to workers’ compensation claims.
- Educate your employees on the safest way to lift objects. Squatting with bent knees minimizes the stress to the back, regardless of what is being lifted.
- Create a policy on distracted driving. Motor vehicle accidents account for a large percentage of work-related fatalities. Eating and drinking, cell phone use and music devices are all possible sources of distraction behind the wheel. The use of such devices could also be illegal, as more state and federal agencies crack down on distracted driving. A good policy can help prevent fatalities and limit liability for your company.
- Along the same lines, prohibit texting while driving regardless of whether or not your state specifically prohibits the practice. Texting while driving makes an employee 23 times more likely to have an accident. A federal ban prohibiting drivers of commercial vehicles from texting has also been recently enacted. Create a written policy for both distracted driving and texting while driving, and have all employees sign off on it.
- Establish and enforce disciplinary measures for safety violations. There should be some type of corrective action for any employee who doesn’t abide by safety requirements.
- Train your supervisors in-house. They may have previously been trained as supervisors in general, but they need to also be trained in your particular work environment.
- Job offers should always be made in writing and should thoroughly describe the offered position to ensure the hire is fit for all duties.
- When the job is offered, send a formal job offer package along with the offer letter. Make sure it includes all the benefits the potential employee is eligible for, including return to work policies and procedures, so there is no confusion later.
- When developing a temporary assignment for someone returning to work, find useful tasks that are not covered by other areas of the company—the goal is not to take work away from another employee.
- Create a written job description and job analysis for all transitional duty jobs. These jobs should match physical capabilities with the work that needs to be done so that they are both useful and appropriate.
- Hold employees working temporary assignments or transitional duty jobs to the same work rules as other employees. This prevents devaluation of the job by employees and sends the message that they are still contributing to the company.
- Develop and maintain a close working relationship with medical providers. Make sure they understand your business so they can help you evaluate return to work policies, procedures and cases.
- For all employees assigned to temporary work, monitor their medical health regularly. Make sure they are doing well physically and, if they are making progress, find out from their physician if they can move forward to more demanding tasks.
- Develop and maintain a close working relationship with claims adjusters. Make sure they know your return to work program, and ask them for advice and suggestions to improve it.
- Resist the temptation to turn temporary job assignments into indirect punishment. Understand that the work is therapy for the returning employee; make sure to stay positive and keep the work meaningful.
- Consider establishing a transitional duty pay rate. It will be less than what the employee would earn working their normal job, but make sure it is consistent among all employees on transitional duty.
- For return to work program employees, stay in frequent touch from the time of the return to work offer letter until they return to full working status. You should be accessible for them to be sure their return to work is progressing smoothly.
- Develop a return to work plan for every injury that results in lost time. Communicate with the employee’s doctor so you understand when and how they can progress to various work tasks.
Claims Management
- Contact your injured workers early and often. This will let them know that you care about them, which can help keep morale up and encourage their return to full, regular duty.
- Consider unconventional or outside-the-box treatment if it will help an employee recover and return faster.
- If your state allows you to direct or encourage employees to use certain doctors, use doctors who understand your business whenever possible. This will help ensure the best treatment for your employees and hopefully aid in return to work scenarios, keeping claims costs down.
- Integrate strategic wellness programs into your company to help reduce injuries. Understand how chronic conditions, like obesity and diabetes, can affect or cause other injuries. Managing such diseases properly can reduce workers’ compensation claims costs.
- Explain workers’ compensation benefits, programs and expectations during new employee orientation to keep future claims costs down. Make sure employees understand that they will not be punished in any way for making a claim or reporting an injury, and explain the importance of promptly reporting any injury or incident.
- Make return to work a priority across your entire organization – every job should have a return to work provision, and every employee should know about it. Return to work program awareness should not just be the job of human resources or your claims adjuster.
- Keep up to date on laws that impact your workers’ compensation claims. Be sure to know your requirements and responsibilities as an employer and how to address any possible or suspected fraud.
- Keep tabs on what your claims administrator is doing; you should always know what is happening with a claim.
Claims Investigation
- Exercise due diligence when investigating a claim. Beyond speaking to the direct supervisor and the injured employee, interview other witnesses or co-workers who could shed light on the situation.
- After an incident or claim, be sure to investigate early and keep all the information organized. Make sure you gather all appropriate evidence and information so it can be verified later.
- Determine whether the employee was actually working on the date that they claim to have been injured. Discrepancies or falsities happen often, particularly with late claims.
Medical Considerations
- Make sure that your occupational medical practitioner does a thorough and proper examination when an employee first goes to see them; this way, you will not be surprised when the independent medical examiner (IME) tells you that you have a problem claimant. This includes performing Waddell’s tests when there is a lower back injury involved.
- A diagnosis should be supported by the conditions of the accident. If the two don’t match up, then the diagnosed injury could be a result of something not directly related to work functions. In these situations, be very careful of what you pay for.
- Don’t pay a bill for a surgery or procedure without reading the operative report. Sometimes it can contain things that had nothing to do with the incident that should not be your financial responsibility.
- Don’t let diagnostic tests dictate your case management; tests only prove that there is an injury, not whether it happened at your workplace.
- For a quick and easy way to save money, refer employees to physicians that you trust to provide legitimate findings and diagnoses.
- Before a surgery takes place, establish whether it was caused by a work-related condition. Doctors may suggest surgery a bit more readily when they know it is a workers’ compensation claim.
- Make sure that diagnoses are legitimate and universally accepted before you pay a claim. For instance, don’t list “pain” as your work-related diagnosis. Pain is a subjective finding—you cannot qualify it or quantify it.
- Know the basics about common medical terms that you may encounter. For example, fibromyalgia is not a diagnosis; it is a symptom. The word itself means “pain in the fibrous tissue” (the suffix “algia” always indicates a symptom).
- Be wary of paying for surgeries or operations caused by arthritis. Arthritis is not caused by trauma and thus cannot result from an on-the-job injury; therefore, in most cases, it should not be considered a workers’ compensation claim. The only exception is arthritis caused by repetitive trauma, found in employees who do a lot of squatting, kneeling or repetitive hand and finger movements.
- Be wary of other common claims that may be masked as workers’ compensation injuries. For example, in general, trauma does not affect an existing replaced knee, making it rare for necessary loose knee replacement to be work-related.
Legal Considerations
- Know and understand the interplay between your state workers’ compensation laws, the American with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA).
- Keep your legal counsel in the loop on workplace injuries right from the beginning. The first 24 hours after an incident are crucial, and your lawyer needs to be informed about conditions, investigations and any updates.
- When hiring, provide detailed job descriptions that include an accurate percentage of the amount of work that is physical. This may prevent later legal disputes.
- Document and file everything throughout the workers’ compensation and return to work processes, as it may become relevant information if there is a claim or later dispute.
- After an incident, review the employee’s personnel file. This will help you understand the employee better, and it may offer clues or tendencies for potential fraud or a vendetta against a co-worker or manager.
- After an incident, your legal team or representative should do an on-site inspection where the injury occurred. Be sure that they interview others who do a similar job in addition to any witnesses.
- If there are changes in the diagnosis, the accident needs to be re-evaluated. It may not have happened as reported.
- Keep an organized case chronology, documenting everything from initial claim to the close of a case. This includes previous history of the employee that may be relevant (past disputes with co-workers, claims history, problems at home, etc).
- Make sure to provide the IME with everything you have, including your chronology.
- Before a trial, make sure your witnesses are prepared. Someone from the company should be present at every hearing; it’s important to make sure that everyone is always on the same page.
Workers Compensation Specialists
GDI Insurance Agency offers comprehensive worker compensation insurance packages. Our California Workers Compensation Savings Program has more information on how to save money.
