The IMPACT Safety Insurance Program: Controlling an Employer's Second Highest Operating Cost

The IMPACT Safety Insurance Program was developed for signatory employers to help address and lower their safety and insurance costs. In many cases, workers compensation, general liability, fleet auto and other insurance coverages add-up as a firm's second highest operating cost. Following are a few factors that employers should consider when evaluating and selecting an insurance broker:

• Does your broker know the Ironworking industry?
  Your insurance broker should specialize in transacting business with insurance carriers who can provide quotes on the classification codes that reflect your scope of work. Insurance brokers have expertise in certain markets and it is crucial to verify that the broker chosen is knowledgeable and experienced in the ironworking industry.


• Does your broker recognize your classification codes?
  It is important for each insurance quote to recognize all of your classification codes and allow you to "break out" payroll amounts for particular class codes. This will allow your company to pay reduced rates for lower exposure activities. Additionally, it will prevent the insurance carrier from basing your premiums on the highest classification codes.


• Does your broker provide multiple quotes?
  An insurance broker should have access to several mono-line or multi-line insurance carriers and should provide you with multiple quotes for your insurance renewal.


• Does your broker wait until the last minute?
  Prior to your annual insurance renewal date each year, your insurance broker should submit your payroll records, loss information, and classification codes to prospective carriers to allow sufficient time for them to develop a quote. You should request all quotes to be submitted for your review well in advance of your renewal date. This will allow you to evaluate each proposal and make an informed decision that is in the best interest of your company.

Claims Management Can Mean Major Cost Savings

Employers that improve their claims management procedures can help their injured workers, reduce claims costs and lower their experience modification rating. Here are several steps you should consider:

• Designated Claims Person.
  Your company should have a designated person who works closely with injured workers and the claims adjuster for the insurance carrier. This person may need some training to better serve in this capacity.


• Maintain Contact with Injured Workers.
  It is important to maintain close contact with injured workers, to enquire about their health and work status and ensure they are receiving work compensation in a timely manner.


• Return to Work Programs.
  In some cases, injured workers can return to work under "restricted duty" conditions dictated by the treating doctor. It is important for injured workers to be treated by medical professionals who understand the demands of the construction industry and the application of return to work programs.


• Evaluating Medical Providers.
  Request references from other policy holders to help evaluate a provider's success rate in treating industrial injuries.


• Periodic Open Claims Reviews.
  Undertake reviews with your insurance carrier to receive an update of all open claims. It is also important to review the excess reserve placed on open claims. If excess reserve dollars are not removed from claims that should be closed, your experience modification factor will reflect these excess reserve amounts and could result in a higher rating.

The IMPACT Approach to Reducing Costs

Key components of the IMPACT Safety Insurance Program included the following services that are designed to help reduce insurance costs:

• Access to multiple insurance carriers through an Alliance Agreement to improve safety performance and the delivery of medical benefits to injured workers. Insurance carriers participating in the IMPACT Alliance Agreement offer multi-line coverages and interstate endorsements, mono-line workers' compensation policies and United States Longshoreman & Harbor (USL&H) coverages.


• Participation in the IMPACT National Substance Abuse Program.


• Claims oversight by an independent case nurse retained by IMPACT to work with injured workers and claims adjusters to help ensure the best medical treatment and services.


• Access to a union program administrator to help resolve disputes and avoid unnecessary claim costs.


• Access to nationally recognized safety and health experts and programs, including jobsite and shop safety and health audits designed to improve safety performance.

Contact IMPACT at (800) 545-4921 to learn more about the IMPACT Safety Insurance Program.