Strategies for Mitigating Liability and Workers’ Compensation Challenges

As we take a look at targeted risk control strategies for workers’ compensation and general liability, it’s crucial to highlight the Independent Schools Compensation Corporation (ISCC) and its exemplary methodology. The ISCC consistently takes a proactive approach to empower its members by offering valuable insights and resources. The purpose of this article is to highlight the benefits of ISCC’s commitment to cost reduction and improved risk management in the complex world of insurance.

Soaring General Liability and Workers’ Comp Claims

For the last 20 consecutive quarters, there has been a consistent surge in General Liability (GL) claims and insurance rates, a trend anticipated to persist. Over the past three years, Workers’ Compensation claims exceeding $10 million have spiked by 30%. This concerning escalation, driven by medical inflation, is a primary worry for employers.

As an extremely successful self-insured group, many of these numbers are not applicable to the ISCC and membership, however we pay close attention to the workers’ compensation marketplace as a good reminder of maintaining our excellent safety culture. Addressing these challenges in the workers compensation environment demands an encompassing risk mitigation strategy that amalgamates claims management, risk control, and analytics. Instead of isolating these elements, organizations must intertwine them into a targeted and measurable risk management approach to ensure continuous enhancement. The ISCC aims to find significant potential premium savings for the group by emphasizing the reduction or elimination of claims and cost drivers.

Workers’ Compensation Risk Control

Adverse workers’ compensation claims significantly impact market access, pricing, and retained loss costs, emphasizing the need for robust risk-control strategies. Effective alterations in claims trajectory should involve seamless collaboration between analytics, claims, and risk-control teams. Recommended tactics include:

• Injury Prevention: Implementing ergonomics programs can slash musculoskeletal injuries by up to 60%, as per OSHA studies.
• Embracing New Technologies: Wearable posture sensors offer real-time feedback to prevent injuries by identifying “at-risk” postures.
• Employee Training and Safety Programs: Targeted training can notably reduce workplace injuries, aiding in preventing the 2.8 million nonfatal workplace injuries and illnesses reported annually by the Bureau of Labor Statistics.
• Early Return-to-Work Programs: Investing in these programs yields potential savings of $3 to $10 in workers’ compensation costs for every $1 spent.

General Liability Risk Control

Similar to Workers’ Compensation, reducing or eliminating top cost drivers for general liability can significantly curtail premiums or actual claims. Recommended strategies encompass:

• Risk Assessment and Mitigation: Proactive identification and addressing of hazards like slip-and-fall accidents through inspections and engineered solutions.
• Cybersecurity Measures: Essential to counter the growing risk of cyber-related claims, including encryption, multi-factor authentication, and 24/7 network monitoring.
• Contractual Risk Transfer: Effectively transferring liability via contractual agreements has proven successful for 63% of organizations in reducing exposure.
• Leveraging New Technologies: Surveillance cameras coupled with AI and machine learning can prevent injuries by identifying hazardous situations.

Business Auto Liability Issues

Mitigating risks related to business auto liability involves comprehensive driver training programs, regular vehicle maintenance, and implementing technology to monitor driver behavior. Clear policies on distracted driving and maintaining adequate insurance coverage are crucial.

The Independent Schools Compensation Corporation Is Here To Help

The benefits of joining the Independent Schools Compensation Corporation (ISCC), operational since April 1, 1992, encompass superior risk control services ensuring employee safety and favorable impacts on operational costs. Fair claims handling fosters injured worker care while empowering employers in managing claims. Members also enjoy consistent dividends and upfront premium reductions. And, the ISCC is also proud of our Health and Safety Grant Program, which is a wonderful way to recognize members for exceptional commitment to safety and our group.