Presented by Curt Svalstad, Director of Risk Services Iowa Municipalities Workers’ Compensation Association Administered by: .

Managing Workers’ Compensation Costs

Presented by Curt Svalstad, Director of Risk Services

Iowa Municipalities Workers’ Compensation Association

Administered by:www.imwca.org

Questions for considerationDo you have a good working relationship with

your city’s agent?Do you know who your workers’

compensation carrier/company is?Do you know what your experience

modification factor (EMF) is?Do you know how your EMF is derived?

Experience Modification FactorA formula that compares your payroll and

claims by class code and then compares your entity’s experience (the result of the previous comparison) to your expected experience based on that of all other employers in the state.

The resulting modifier adjusts your standard premium higher or lower according to your loss experience.

The modifier for the next coverage year is based on the insured’s loss experience of the last 3 completed years.

EMF IllustrationStandard Premium

Experience Modification Factor

Modified Premium

$50,000 X 1.20 = $60,000

$50,000 X 0.80 = $40,000

Controlling your EMFTwo basic ways:

By preventing injuries/accidents from occurring

By containing claim costs once an injury occurs

Preventing Injuries/AccidentsMake safety a priority – get everyone’s buy-in

Form a Safety Committee Create an accident investigation teamSet safety performance goalsDevelop written safety programs and train

employeesIncorporate a disciplinary policy for unsafe

behaviorCommunicate frequently with employees

about safetyPerform pre-employment, post-job-offer

physicals and background checks

Containing Claim CostsReport claims to your carrier immediately!Implement a designated physician programHave written, detailed job descriptionsImplement a return-to-work programHave accident investigation team complete

their investigation and report to Safety Committee

Stay in contact with the claims examinerStay in contact with the treating physicianStay in contact with the injured employee

What other questions do you

have?Curt Svalstad, Director of Risk Services

[email protected] Iowa Municipalities Workers’ Compensation Association

Administered by:www.imwca.org