There are several things that a Moving & Storage company can do to lower workers compensation insurance costs.   Some of the items have an upfront cost to them, but could have large savings down the road.  A single claim will affect your experience modification for three years. 

In addition, new workers compensation rates were issued for January 1, 2011.  Most moving companies will not notice any difference.  The rate for driver and labor code 8293 was $10.27 in 2010.   The rate dropped to $9.84 for policies effective after July 1, 2010.  Now the rate will go back up to $10.27 in January. 

Medical Only Claims

In Florida, medical only claims are reduced by 70% when they are applied to a company’s experience modification.  This is a big thing that you should take advantage of.  If you continue paying the employee, you cannot consider it “sick pay”.  It has to be their regular rate of pay. 

My advice is to have regular conversations with the claims adjuster.   In addition to discussing keeping the employee on payroll, you should always know your employees next treatment, whether they can come back to work “full duty” or “light duty”, when the employee will be at maximum medical improvement and whether the employee will have a permanent impairment.    

Another way to impact your experience modification is to work your claims.  By making sure your claims are closed at least six months prior to the end of your policy, you might save money.   Sometimes a claim is only being held open waiting for paperwork to be signed or a release from the doctor. 

Return-To-Work

Many Workers Compensation carriers will require you to have an RTW, or a Return To Work policy.  If is not required, it will make your company more attractive to the carrier and reduce your claims expenses.  The concept is that an employee working is not sitting at home watching personal injury attorneys.  It also reduces the idea that they can get paid for not working. 

As quickly as possible, find out from the adjuster or the doctor if the employee has been released back to work with or without restrictions.  Do not rely on the employee just to bring it to you.   Sometimes they will hold back this information until it is convenient for them.  Always contact the employee after their doctor’s visit to ask them how it went and what the doctor said.

One misconception about RTW is that you have to pay an employee at their same rate of pay.  Not true.  You only have to pay them the rates commiserate with the job they are doing.  For example, if an injured drive is able to sweep out the warehouse, you only have to pay them what you would pay that type of labor.   Sometimes it is hard to find jobs that fit within the injured employee’s restrictions and abilities.  Do what you can and discuss the issue with the adjuster. 

Voluntary Termination

This is somewhat of a new term that workers compensation carriers use for injured employees that hire an attorney.   As part of any settlement, they will require the employee voluntarily resign.  This has many purposes.  First and foremost is that it is not good for an employee who has received a settlement to be around the other employees.  

Some employers have a difficult time with the thought that they are losing a “good” employee.  But remember, this person hired an attorney and sued you.