Since 2015, Michael Quinn Kaiser has worked as a Consulting Director of Risk Management for 24 Hour Fitness Inc., which is a health and fitness chain with $2 billion in annual revenue. The company hires 18,000 employees in the United States, and it’s up to Michael Quinn Kaiser to help the Chief Financial Officer (CFO) in managing various aspects of risk management, including workers’ compensation.
“I reduced workers’ compensation claims tail by 50% and returned $2.5 million in excess reserve holding to profit line while minimizing open claims count by 20%,” he says, in regards to some of the accomplishments he’s achieved at the company.
Workers’ compensation insurance is one of the biggest expenses affecting many businesses. It’s an essential cost that covers any costs related to injuries incurred by employees while working. While this insurance is mandated in many states, there are a few things you can do to keep claims to a minimum:
If you haven’t developed and documented a safety control program, it’s time to do so. Improved safety at the workplace leads to fewer claims. The safety program has to be endorsed by senior management to assure its execution, and it should spell out the processes, policies, and rules of safety enforcement. Including a disciplinary aspect to the program ensures that employees are held accountable for breaking the rules or rewards them for following procedures.
Take prompt action
When an employee suffers an injury, it’s important to take immediate action. Start by completing an accident report that includes images of the scene. The insurance should be alerted of the injury within twenty-four hours to ensure the incident is handled immediately.
Beware of fraud
If you suspect a claim is fraudulent, don’t hesitate to raise it with the insurance company. Review your workers’ compensation policy to ensure the accuracy of the allegation. Realize that you sometimes have to investigate when you suspect fraud is involved.
Consider a professional
Since many firms, especially small business, may not have the capacity to hire a full-time human resource professional, they often rely on the advice of consultants on issues such as employment practices and handling injury claims. A good consultant such as Michael Quinn Kaiser can help provide the assistance such firms need to handle workers’ comp claims efficiently without jeopardizing business operations.
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