If You Think The Insured Cost Of A Workers Compensation Claim Is High, Read This

If you are like most businesses today, you are being constantly pressured by customers to reduce prices and improve quality. At the same time you must constantly fend off vendors and suppliers who are attempting to pass along their price increases to you. In this environment you probably spend a tremendous amount of time and financial resources improving productivity and reducing waste throughout your organization. You know all too well that this waste and inefficiency represents a significant threat to your competitive edge, growth plans, and bottom line profit.

Have you considered the fact that every worker injury is a major disruption to your work process and creates waste and inefficiency throughout your organization? According to the Occupational Safety and Health Administration (OSHA), for every $1 you spend on medical expenses for a workers compensation claim you also incur $4 in indirect workers compensation costs. Also, for every $1 of disability (lost time) expenses paid for a workers compensation claim OSHA estimates that you also incur between $2 and $10 in indirect workers compensation costs.

When corporate executives were surveyed in January, 2005 by a major insurance company, two out of every three estimated their company’s average ratio of indirect workers compensation costs to direct costs (premiums) for a worker injury claim to be at least 2:1. Unfortunately indirect workers compensation costs are rarely taken into account by most business owners and financial mangers because they are not easily identified. The difficulty is in accurately measuring this financial impact, and obtaining reliable information on which business owners and financial managers can deploy scare resources to minimize these costs. However, designing a safety program around the credible quantification of your organization’s TOTAL COST of worker injuries is the more effective way of reducing short-term and long-term costs. Also, if injuries do still occur, organizations are finding that aggressive workers compensation claim management practices that include a prompt injury response and return to work programs can significantly reduce the financial waste resulting from workers compensation claims.

Now you can quantify your TOTAL COST of workers compensation injuries, zero in on your areas of financial waste in your organization using revolutionary new technology – CompEraser. For more information go to www.comperaser.com.