Posted by Katrina Paglierani on Thu, Dec 10, 2009 @ 08:04 AM
I just read this article on insurancejournal.com and found it is worth recommending to my readers.
Injury Severity, Not Legal Fees, Drives Workers Comp Costs in Illinois
http://www.insurancejournal.com/news/midwest/2009/12/07/105760.htm
What attracted me to this article is that I was specifically researching the number of injured workers or percentage of employees that are out on workers comp in different industries and in different states. It turns out, those in the industry do not have those numbers readily available. But, I think that it is worth looking into for your own education and future planning. Especially considering the example shown in this article.
"For every 100 illinois construction worker there are 1.21 injuries per year." I also read recently that the average age of a construction worker is 44, up from 40 a few years earlier. This is probably due to the fact that people are staying in the workforce longer, retiring later.
In addition, at least in illinois, the construction workforce is projected to increase in different sectors anywhere from 10-15 percent in 2010. So, one would assume, there will be an increase of workers compensation claims that go along with that.
Construction injuries, according to the insurancejournal are usually extremity injuries or back injuries. From my experience, most of the construction cases we handle are back injuries and/or rotator cuff. These cases are the most expensive, because they go on for a long time. Also, they are more difficult to place and require dedication and special attention. Often, construction companies do not offer light or modified duty because they have no where to place the injured workers.
This is also true of manufacturing and transportation companies among others. My suggestions is that you take the time to find out what percentage of your workforce is out of workers compensation to get a handle on how much it is really costing you.
You may even want to plug it into the free "Sales to pay for Accidents" calculator on reduceyourworkerscomp.com
http://reduceyourworkerscomp.com/calculator.php
referenced article: http://ibjonline.com/print_swillinois_construction_workforce.html
Posted by Katrina Paglierani on Fri, Oct 02, 2009 @ 06:56 AM
The Workers comp law varies so much from state to state it is a daunting task to keep track. I decided to research the differences in workers comp law as they pertain to indemnity expense. I thought I would share my research on risk management in wage loss states.
I hope this will assist those who are new to the Risk management field with cases in wage loss states.
The following states have high wage loss exposure (indemnity payments) after a case has reached MMI. Michigan (MI), Illinois (IL), Pennsylvania (PA), Louisiana (LA), Maine (ME), New Hampshire(NH) and New York (NY). I will add additional states information as I continue my research.
The following states have no wage loss exposure (indemnity payments) once a case has reached MMI: Alabama, Arizona, Arkansas, Colorado, Connecticut, Florida, Mississippi, Missouri, New Jersey and Tennessee. The State of Florida has "impairment benefits" but no wage loss payments. These payments are determined based on the injury, and continue for a specified amount of time. They are not effected by re-employment of the injured worker in any way. The Injured worker receives the same impairment benefit, whether they are working or not.
Some states have wage loss exposure limited by the rating of the permanent disability or the percentage of disability. Most of these charts are available on each states Workers Comp Board website. A list of these boards by state can be found here:
http://www.ic.nc.gov/ncic/pages/wcadmdir.htm#al
For example: In DC, the length of time an injured worker can receive indemnity payments is based on the injury and a formula determines the benefit. In Michigan, there is no time limit on indemnity payments for permanent partial disability. In New Hampshire the limit is 262 weeks (which includes the weeks the injured worker was considered temporarily disabled.) In Maine and Louisiana the limit is 10 years or 520 weeks. In New York Permanent Partial Disability cases are eligible for indemnity payment to continue depending on injury from a minimum of 225 weeks to a maximum of 525 weeks. Pennsylvania has a limit of 500 weeks for Permanent Partial Disability indemnity payments.
In states where there is a continuance of indemnity, or wage loss, payments required from the Employer or Insurer, there is also the obligation on the part of the injured worker to actively pursue re-employment and/or to make an effort to obtain work. When an injured worker returns to work, depending on the pay variance, the employer may be obligated to continue to make up the difference between the original wage earned when the employee was injured and the new wage. This also varies by state. But, the insurer can apply to the Workers Comp board to discontinue payments if they determine that the Injured worker is not actively pursuing re-employment.