When an injury happens at work, the employee is entitled to worker’s compensation benefits. In order to receive them, the injured employee has to notify his superiors within a given time frame (30 days) from the injury. Failure to do so will result in ineligibility to receive worker’s compensation benefits.
After that, the employer is the one responsible for crafting and passion on the First Letter of Injury to the insurance carrier. From that moment on, the decision lies with the Board.
However, the insurance company is not the only one affected by a worker’s compensation claim. Sadly, most employers are also affected by it in the long run. Here is how one successful (or unsuccessful) worker’s compensation claim can affect an employer.
Changes in Annual Premium
The first change comes in the annual premium that the employer pays every year. There are numerous factors that are taken into consideration when the annual premium is calculated. Your insurance carrier will present you with their formula, and it is your decision whether or not you want to accept it.Normally, premiums are calculated based on the following formula: employee payroll is multiplied by a “rate”, which is decided based on the previous years and injuries that did or did not occur. The more injuries that occur every year, the higher the rate.
For example, if your payroll is $1,000,000 and the rate is $1, your premium will be $1,000,000 divided by 100, multiplied by 1, which is $10,000. This is your manual premium, with no experience modifiers applied. Once the experience modifiers are applied to the manual premium, the result is called the standard premium.
Learn more about your annual premiums by speaking with one of the Workers Compensation Attorney in Los Angeles. They know how the insurance companies calculate their premiums and will help you understand it. If you call today, you will be able to schedule your free consultation.
Tips on Lowering Your Premiums
In order not to spend a small fortune every year on your insurance premiums, you should utilize the following tips and try and reduce your premiums. Here are some suggestions on how you should manage your worker’s compensation premiums:- Make sure that all your supervisors have received proper safety training
- Hold regular safety meetings and improve everything that needs improving
- Develop an effective injury and illness prevention program
- Develop a post-accident response protocol and make sure that the appropriate people know what to do in response to an injured employee
- Make sure your entire staff knows where to go in case of an injury (your insurance company’s Medical provider Network MPN)
- Manage all claims to be sure that the injured individuals are receiving proper treatment
Los Angeles workers compensation lawyer advise you to be aware of potentially fraudulent claims. Many employees may try and trick you, and it is your job to protect your best interests and the interests of your company. Get in touch with attorney today and learn how to recognize a potential fraud and prevent it before it causes any additional problems.
