Do the 3-Step Prep for the NCCI Split Point Change
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Not quite as catchy as the hustle but nevertheless, as a staffing business, it's essential to address and control losses, as well as be familiar with your loss profile so your company is prepared for the current NCCI experience rating change. Here's your three step prep to get you ready for the big dance.
Step 1. Review Experience Mod Worksheets
Mod worksheets contain a great amount of information. There are three key pieces of information that you should pay attention to: classification codes, payroll, and loss amounts. Review worksheet to ensure the classifications listed are in fact correct and match what is listed on the policy. Confirm payrolls are correct based on an insurance carrier audit. Finally, review all losses to confirm they are in fact losses associated with your company.
Step 2. Conduct Claim Reviews
The purpose of a claim review is to make certain your loss runs are accurate and loss amounts are correctly calculated. This is extremely important for staffing businesses. In addition, you should review all reserve amounts to ensure claim reserves are not being overstated. Timing is crucial. Once a policy expires, you have no more than six months to conduct a claim review as data is sent to the NCCI at that time.
Step 3. Implement a Risk Management Strategy
As you are well aware, risk management and safety programs are critical in controlling the cost of workers compensation and these programs will continue to play an important role. A staffing company can greatly reduce costs associated with workers compensation by preventing accidents and claims before they happen. Additionally, a loss control program should directly address common losses that are driving up a companys experience modification factor. Part of your risk management strategy should also include procedures for timely claim reporting, accurate accident investigation and a robust Return to Work program. These components can also impact workers compensation costs and should be addressed with your broker or safety consultant.
If you're not controlling your losses, the NCCI changes could negatively impact your mod and increase the costs associated with workers compensation insurance.
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