Part OneThe most costly mistake leading to employer work comp problems - as measured by how high an experience modifier can go thus directly impacting how high annual premiums will go is -
The lack of an effective game plan for vetting or screening every single applicant.Every employers’ peak of vulnerability to future claim problems, note I did NOT say injury problems, but claim problems as measured in dollars is at the…point of hire. At this critical juncture every employer will in fact determine their future work comp Modifier, which is guaranteed to manifest itself in their back pocket during the “”policy year following their next renewal””. Discounting the value of this issue leads to what we refer to in the industry as the -
“my carrier did this to me and now I am really mad” complex.
The sad part is the carriers have cleverly set this up to work exactly as it does because they fully understand how 98% of employers think and act on this truly aggravating subject. Sadly many employers actually believe they are already doing everything possible to screen applicants when in reality they - do not know that they do not know - and their in lies their problem.
PT Barnum has been mistakenly quoted to have said in 1869 *“There’s a sucker born every minute”. Ironically had PT or the actual *author foreseen the future of Work Comp in 2012 they would have also directed this unfortunate line of truism at many of today’s private employers.
THE STING or “Being set-up for the Fall”
Let’s examine the reality of the ingeniously designed Work Comp system (regardless of state), which is always couched in nobility, yet is cleverly designed to pillage every employers back pocket unless or until they figure out how to go on offense. Below are 10 unassailable conditions of fact that are applicable in today’s universe of Workers Compensation.
BONUS POINT #11 – Guess what…Getting on the Workers Compensation gravy train is a wonderful pension plan or a great way to raise $10,000 to $50,000 in cash if needed and best of all it doesn’t even require there be an injury. Is this a good deal or what?
You ask - How can this amazingly attractive employee entitlement be allowed to continue? Answer – Why not, it works exactly as designed by the state legislatures, nothing is broken. Your Question should be what can I do to avoid the guaranteed premium-raising train wreck heading my way if I fail to protect myself at the point of hire?
Find Out Next Month - Part Two
* PT Barnum did not author this famous 1869 quote. To learn who actually did, visit