Claims Management Systems – Key to Profitability

Jan. 25, 2012 - PRLog -- A key issue facing businesses today is keeping the cost of your claims to a minimum so as not to kill your profitability as a company.  In the case of Workers’ Compensation claims, many employers do not realize how much a claim costs their company.

If you pay $75,000 for your Workers’ Compensation premium, and one of your employees is injured to the tune of $9,000 for example, most do not know the real impact to their profitability.  They think nothing of turning the claim into the insurance carrier to be paid, because after all, that’s why they pay insurance, right?

What most don’t realize is the fact that in spite of all the premiums they pay for their WC policy, they will end up paying for the cost of their claims over and above what they pay in premiums. In the example above, an employer would continue to pay their premiums, but now will end up paying the $9,000 back into the system by virtue of having their experience modification factor increase because of that claim.

The real kicker to this issue is whether or not that particular claim will cost you $9,000 or $27,000. That’s determined by how effectively that case gets managed.  What construction companies are doing to keep insurance companies honest in the processing of their claims is deploying claims management systems, so issues don’t fall through the cracks that cost them money.

Some of you may qualify for some free claims management tools designed to save money on claims.  For more details, call Rick Dalrymple at 407-998-4108 or email to Rick.Dalrymple@ioausa.com   
www.RichardDalrymple.com

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Risk Manager, Consultant, Author, Speaker. We help companies increase their profitability by reducing their business risk. We provide tools that help companies compete better in their marketplace by improving their operational efficiency.