Worker’s Compensation is an issue all companies
face with few options on how to reduce the costs. Three basic factors
formulate the rates:
-
Size of Payroll (number of employees)
-
SIC Codes (type of business)
-
Frequency of Claims (in order to minimize this area, some companies
pay their smaller dollar amounts…or self-insure up to a
certain amount, which can amount to thousands of dollars). Frequency
of claims is the area where we can most assist the employer. Most
workers’ compensation insurers believe that at least 20%
of the claims are “suspect”. This belief falls under
“Monday morning claims” where the worker brings weekend
issues to the workplace on Monday mornings. Within any organization,
there are three categories of workers. Up to 20% are looking for
ways to pad their pocket; another 20% would never do anything
against their employer, sometimes at their own detriment, that
no matter what occurs; and the remainder that would only file
a “Monday morning claim” if they were in a financial
bind. It is this percentage of workers where Aflac can best assist
the employer. In most states, the employee has to be off work
for a minimum of three days before a filing a claim. That is lost
wages to the employee and an inconvenience for the employer. In
addition, this event is added to the record for both the employer
and the employee. Even after a claim is filed, the employee typically
doesn’t see those monies for 60-120 days… more lost
wages. Some ways that our program can assist both the employer
and employee are:
-
Paying for injuries incurred off the job
- Most claims are paid within 2-4 days.
- Claims can be received in less time that the minimum
State requirements for filing,
which is typically 3 days.
On the average, there are 11 unintentional-injury deaths and about
2,340 disabling injuries every hour during the year. (Accidental Death
and Dismemberment Benefits are included with our Programs Personal
Accident Plan.) There are over 5,000 areas/incidents where our Program
provides coverage.
-
The Program pays for obvious areas such as cuts, breaks, falls.
They also pay for many areas not typically paid by “traditional
insurers” such as insect bites, dental issues due to an
accident, appliances-crutches, transportation, lodging and many
more. The Accident Policy will not eliminate the extremely high
worker’s compensation claims such as electrocution, but
it will reduce the “Monday morning” cuts, breaks,
falls, etc. The Policies pay cash directly
to the individual within 2-4 days, regardless of whether
or not they have other insurance. It’s immediate cash. How
they use the money is up to them. It’s
another reason to file with the NPI's Business Partner instead
of Worker’s Compensation.
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