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Workers Compensation
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Workers' compensation is the oldest social insurance program; it was adopted in
most states, including California , during the second decade of the 20th century.
It is a no-fault system, meaning that injured employees need not prove the injury
was someone else's fault in order to receive workers' compensation benefits for
an on-the-job injury. For various reasons, workers compensation claim inflation
costs outpace general inflation rates in the United States , and double-digit premium
increases each year have become the norm.
It is true that after the event of September 11 workers compensation coverage is
harder to come by and more expensive. A major factor contributing to the steep rate
hikes has been underwriters' wariness in insuring companies whose employees are
concentrated at a single location or facility, viewing them as more vulnerable to
nuclear, biological, or chemical terrorist attacks. Such risks, once viewed as theoretical,
now play a major role in an underwriter's rating considerations, contributing to
higher premiums and deductibles for the insured.
Working together with our strategic partners, we developed a three step approach
on design and managing an affordable, efficient workers compensation program:
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- Evaluate the current program based on a specific industrial bench mark
- Audit the existing plan’s overall performance
- Recommend a solution with immediate steps for improvement
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