How to Read Your Loss History
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Loss runs are reports provided by your insurance company that document the claim activity on each of your policies. Receiving loss runs on a regular basis will provide your staffing company with valuable information that could help save money on your insurance program, as well as make your workplace a safer place for employees.
A typical loss run will tell you information such as how the accident happened, who was involved, what body part was injured, what date the loss occurred, how much has the insurance company paid and if the claim is open or closed.
Tips on Reading Loss Runs
- Look for trends. Do most of your claims happen on a certain day of the week? Is there a specific body part that employees are injuring more? Have you had multiple claims at a specific client site?
- Pinpoint the status of claims. Get a better understanding of claims that have been closed out and what claims are still open, so you can work towards a resolution.
- Examine the numbers. How much has the insurance company paid to date and also how much do they have set aside for reserves on a particular claim?
It’s not enough to just read a loss run. Your staffing company should also take action.
- If you spot a trend, do something about it. If you have loss problems at a certain client site, implement a more strict safety program with them or possibly take a site visit to ensure all safety protocols are being followed. If most claims are happening on a Friday, this may be due to fatigue throughout the week and a change in hours/schedule might be needed to fix the problem. If muscle tears/strains are a repeat loss, suggest a stretching routine before shifts.
- The longer a claim is open the more it affects your Experience Mod Rating (EMR), which in turn, increases premium. Schedule meetings with your insurance carrier and broker to review open claims and get updates on the claims process. This will help close claims more quickly.
- The “reserve” amount or the amount the insurance company expects to pay on a claim, but has not yet paid, goes against your EMR. Not only knowing what the insurance company has paid, but also knowing the reserves, can help you predict what future insurance premiums, as well as your EMR will be.
Sitting with your insurance broker on a quarterly basis to review your loss runs is a great way to spot trends and help make your workplace – along with a client’s – a safer place to be.
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