Lieberman Research Worldwide surveyed 600 small business for Aflac and concluded that companies who provide voluntary accident and disability insurance experience a reduction in workers compensation claims. (Insurance Business).
One may conclude from the survey results that an employee will file a claim with his/her accident and disability insurance provider rather then file a worker's compensation claim.
Why should employers pay attention?
One of the variables for calculating the worker's compensation premium is the calculation of the experience modification. The more claims a company submits the higher the "MOD rate". The higher the MOD rate the higher the premiums.
Claims that are filed through the voluntary accident and disability insurance provider do not go into the MOD calculation. The savings can be significant.
More importantly voluntary accident and disability insurance is generally paid by the employee. Small and medium size businesses should encourage their workforce to sign-up.
SMP Consulting Group is the leading provider of workers compensation audits finding misclassifications and erroneous calculations for its clients. We only work on a continent basis without upfront fees. We only share in the savings. For more information visit our website at www.smpconsultinggroup.com.
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