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An experience modification rating (EMR or Mod Rate) is a strong influencer when determining a construction company’s risk. It uses information from past workers’ compensation claims to determine a company’s chance for future risk. Many construction projects will require companies to have a 1.0 average EMR or lower. 

Workers’ compensation insurance is valuable for any construction company as it helps cover expensive medical costs and other expenses. However, workers’ comp fraud can occur when a false statement is made or key information is withheld in a claim. Such actions can result in the denial of certain benefits from your workers’ compensation policy, which could leave your company at risk to pay costly claims directly. 

 Safety management in a construction project should be second nature, but sometimes contractors may neglect important safety practices. When a construction project involves high risk and potential hazards, it’s imperative to review safety measures with workers and assess the dangers at the work site. Here are some useful safety practices you can follow to make your job site safer. 

Last week TSIB discussed California’s Workers’ Compensation Premium Assessments, specifically what they are and where to find them in your insurance policy.  This week we will share how the rates will affect your company.

New Legislation

In November 2017, the California Department of Industrial Relations issued a notice to “All Insurers Authorized to Transact Workers’ Compensation in California” which explained the 2018 workers’ compensation (WC) premium assessments. The new rates increase the total cost of WC for employers. Most employers overlook their premium assessments listed on their insurance policy. Why? Let’s take a step back to understand what “premium assessments” are and how they affect WC costs.

We hope you enjoyed Twelve Best Claims Practices Your Construction Company Should Follow (Part 1). We’ve given you six effective claims best practices to follow, but there are several other important practices to abide by.

One of the biggest problems with the current state of property and casualty claims management is that poor performance is the “new normal,” rather than the exception. When failing to follow claims best practices, there can be negative consequences, such as higher loss rates, higher premiums and, ultimately, loss profitability.

Workers' Compensation insurance rates are expected to go down in several states this year. Improvements in workplace safety are a major contributing factor for the lower rates, with around 36 states seeing a decrease in rates last year. 

Construction projects can benefit from different types of controlled insurance programs: an Owner Controlled Insurance Program (OCIP) or a Contractor Controlled Insurance Program (CCIP). While a general contractor sponsors a CCIP, a construction project owner is responsible for sponsoring an OCIP.

Safety management on a construction project should be second nature, but sometimes important safety practices are neglected or overlooked. When a construction project involves high risk and potential hazards, it’s imperative to review safety measures with workers and assess the dangers at the work site. Here are some useful safety practices you can follow to make your job site safer.