Two effective Workers' Compensation cost-control strategies involve the carrot and the stick.

Companies can charge Workers' Comp costs back to the department or business unit whose employee(s) had the claim—a strong incentive for managers with profit-and-loss oversight to do everything possible to avoid claims in the first place and to make sure that any incidents that do occur are reported promptly.

The other approach is for management to bestow rewards upon employees (or departments) for periods in which there are no claims.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Commercial Lines
Loss Control
Public Sector Risk
Workers' Comp