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Workers compensation claims can be a major drain on organizational resources. Any method that an organization can use to reduce costs in this area will help the bottom line. Managers who supervise workers have the greatest opportunity to reduce losses. Helping managers see that what they do makes a difference is essential. One dramatic way to show managers the effect that their actions can have on the cost of workers compensation is to allocate the program’s administrative costs and loss costs across organizational units. If improvement in a unit’s allocation is tied to the manager’s performance review, he or she will be motivated to make the necessary changes. This Letter will show you various ways to allocate costs.
The CSR Advisor (CSR 11/14) In This Issue:Coverage notes: Insuring and preventing winter damages; Industry insight: Workers compensation exclusive remedy; Professional growth: So you’re new; A look at the law: No contingent business interruption coverage for indirect supplier; Test your knowledge: Unexplained injury and workers compensation; Two-minute memo: Burglary prevention; Monthly quiz: Underwriting
Mergers and acquisitions have serious implications for workers compensation. Many of the concerns should be considered in the due diligence process before the transaction is finalized. This issue of Workers Compensation Outlook discusses the workers compensation considerations in mergers and acquisitions. Since downsizing often follows a merger or acquisition, we also look at the consequences for workers compensation when a company downsizes.
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