The CPAP was implemented by the NYCIRB (N.Y. Compensation Insurance Rating Bureau) in 1993 to address premium differences between high wage and low wage paying employers in the construction industry. At that time high wage employers were paying a disproportionately high premium for their Workers’ Compensation insurance than low wage employers even though they performed similar work with similar risk to injury on the job.

This program attempts to close the premium differential by granting credits on policies based on the hourly wage paid by employers. The higher the wage paid, then the higher the credit, which offsets the disparity in payrolls and allows for a more equitable premium charge for all employers in the same trades.

If you feel as though your company is paying too much for Workers’ Compensation insurance just because you pay higher wages to your employees, contact The Flanders Group today. We can help you apply for CPAP, as well as find other areas where you can manage risks.

NIOSH has issued recommended standards that workers not ride on the outside of trucks moving faster than 10 mph nor travelling greater than 0.2 miles between stops. Many of the fatalities occur from other motorists striking the worker – so proper training for workers, planning routes with streetlights during dark hours, and use of proper clothing to increase visibility are important tools.

The Flanders Group provides extensive services for managing Workers Compensation insurance programs for the Refuse/Waste collection industries. This includes recover-at-work programs for injured employees to reduce the long-term cost of DAFW claims. Please contact The Flanders Group today to discuss the overall risk management program of your refuse or waste collection business.

The use of drugs and alcohol at work can have devastating effects on your operations and increases the chance of injury. If your company does not have a policy regarding alcohol and substance abuse you may be paying more for workers compensation insurance than you need to. Your Ex Mod Factor may be negatively affected as well.

When employees are under the influence of drugs or alcohol at work they are more likely to be severely injured and as a result may have to take time off. Your insurance premiums may rise and loss of productivity or added expenses for training replacement employees will cost you more in the long run than implementing a drug testing and training policy.

Training and education programs have proven successful for many businesses in deterring employee drug and alcohol use and therefor lowering Ex Mod Factors.

If you think drug and alcohol testing and training may be beneficial to your company, implement a written policy. The policy will determine when and how you will conduct drug and alcohol tests, whether it is before employment, after an accident, after suspicious behavior, randomly, or all of the above. Also, address that all employees will be subject to drug tests so as to not discriminate against a single group of employees, which is illegal. It is important to inform your employees, in writing, that refusal to take a drug screen will result in a presumption that the test would have been positive.

After your employees are aware of this new policy, be fair and consistent in your enforcement of drug tests and training. Studies show that frequent, educational drug resistance training is more effective than a once-a-year class. These training sessions don’t have to be long and strenuous, but they should inform employees about the dangers of working while impaired and encourage those with drug or alcohol problems to seek help.

If you are concerned that your employees are using drugs or alcohol while working, or are just interested in implementing a testing and training program, be sure to talk to a Flanders Group representative. We can help you implement a testing procedure, provide training materials, and help you decrease your Ex Mod Factor.

Keep your workplace safe and drug free, for more information on a drug free workplaces visit www.dol.gov/elaws/drugfree.htm

The key elements of an injury prevention program are:

• Management leadership
• Worker participation
• Hazard identification and assessment
• Hazard prevention and controls
• Education and training
• Program evaluation and improvement

These elements, particularly leadership and participation, must work together and constantly be improved upon to insure the most effective injury prevention plan. These plans are very important in managing your Experience Modification Factor and securing your business the lowest Workers Compensation premiums.

The Flanders Group specializes in Workers Compensation Insurance programs including prevention programs for employers in specific industries (e.g. Nursery/Landscape; Commercial Real Estate; Waste Haulers; RV/Auto Dealers; Marinas; and Manufactures), we have the experience to be a true partner for you and provide templates and training to ease your administrative time and expense. Our expertise in Workers Compensation Insurance and injury prevention plans can truly help you control your Experience Modification Factor.

The Flanders Group specializes in helping employers in New York and across the U.S. manage Workers’ Compensation programs so we can will be able to assist you in identifying accident trends in six major areas:

• The occupation most affected by workplace injuries
• The location that a majority of your workplace injuries occur
• The most common types of injuries
• The cause of the injuries
• The body parts commonly injured
• And the Lag Time in reporting injuries

By identifying these trends you will be able to pinpoint your most common sources of Workers’ Compensation claims and will be able to move forward by conducting a Job Hazard Analysis to further take control of your Experience Modification Factor. This analysis will identify the uncontrolled hazards of a particular job, and its intention is to focus on the jobs that have the highest rate of injury or illness. It also unveils locations where there is potential for severe injuries. A sample of a Job Hazard Analysis Form can be found at http://www.osha.gov/Publications/osha3071.html.

The Flanders Group also suggests implementing a progressive discipline policy to address safety violations.  The key is to fairly and consistently apply your policy.  Bringing safety standards into the HR performance management process helps build the organizational culture of safety and will also help identify staff development opportunities.  When you support safety, your claim costs will decrease and have a positive effect on your experience modification.

By specializing in Workers’ Compensation insurance programs, including safety groups, for employers in specific industries (e.g. Nursery/Landscape; Commercial Real Estate; Waste Haulers; RV/Auto Dealers; Marinas; and Manufacturers), The Flanders Group has the experience to be a true partner for you and provide templates and training to ease your administrative time and expense.

1. Injuries reported within 2 weeks are 18% more expensive than those reported within 1 week. And it gets progressively worse as time goes by. For example, injuries reported between the 4th and 5th week following an injury are 45% more expensive.
2. The biggest finding involves back injuries, which as a group are 35% more expensive if not reported within the first week.
3. Soft tissue strains and sprains are 13% more expensive if not reported within one week; carpal tunnel injuries, in which onset is admittedly difficult to pinpoint, are 11% more expensive with late reporting.

The Flanders Group suggests your organization have a goal of reporting within 3 days of an incident or accident. If complete information is not available, the claim should still be reported so that injury management strategies can be deployed. When an employee calls in sick, make sure they are contacted in case the reason they are out is that they had a work- related injury. The sooner you find out, the more proactive you can be.

Knowing and measuring your “lag time” is an essential cost control measuring stick. Companies with well- managed communication between supervisors and the HR department or function are more likely to report injuries promptly and thoroughly, which helps control your experience mod and, ultimately, your total annual premium cost.

The Flanders Group will assist you in updating your claims reporting process and ensuring that your employees benefit from prompt attention and claims management – which will, in turn, reduce your total long term expenses for Workers’ Compensation insurance.

According to research by the Menninger Foundation, there’s a 60-day window to get employees back on the job and productive again. After that, many never return. Implementing a Recovery at Work Policy provides for an immediate intervention that contains costly Workers’ Compensation claims. The Flanders Group has developed a proprietary Recovery at Work Program template that has already been implemented by hundreds of employers across New York State and the U.S.

Most employees interpret an effective Recovery At Work Program as positive workplace involvement in their recovery. This attitude of caring helps the injured worker maintain their self-esteem and increases loyalty. Recovery At Work is a proven strategy to reduce the cost of your claims, which will help manage your experience modification factor.

An effective process will include a relationship with a medical resource that can efficiently schedule and complete the exam so that there is minimal delay. The employee will have received a medical questionnaire to complete before the exam so that the doctor will know any pertinent history. The Flanders Group specializes in helping employers manage Workers’ Compensation programs so we can support you with examples and template documents for the best practices we recommend.

The employer will need to provide a detailed job description so the medical professional can understand the specific job requirements. We suggest the exam also include an initial drug screen. Once the exam is complete, the medical professional will determine the employee’s ability to perform the job and any accommodations that they may need.

In the end, the employer has an applicant who is matched to the physical demands of the work environment. It is a critical strategy that prevents injuries from occurring and helps control your experience modification factor.

While the formula is complex, it simply compares your specific payrolls and losses to your industry’s average losses for similar operations. If you are at the industry average, your Experience Mod is a 1.0. If your experience is 20% better than average your Experience Mod would be a .80, or if your losses are 20% worse – the Exp Mod would be a 1.20. Your standard Workers Compensation premium is multiplied by the Experience Mod factor and the result is your final premium (subject to audits).

Your claims are included in this calculation for 3 years so the cost of a Workers’ Compensation claim today will be with you for years to come. In this blog series, we will look at the most effective ways to take control of your experience mod based on our expertise helping thousands of employers across New York and the U.S.