Risk & Business

Based on a study by NCCI , medical cost containment strategies for workmans comp are not working as predicted. The reason is that doctors are shifting billings from their private practices to billings through hospitals or other facilities that fall outside the fee schedules. This is diluting the effectiveness of work comp cost containment in which rates are predicted. In Delaware the recent mandated rate reductions were instituted because of the prediction that Senate Bill 1 medical cost containment strategies would start to work. However the results to date have not been stellar. I can only hope for small business owners in Delaware that the anticpated work comp cost containment measures start to show positive signs. If not the low rates business owners are enjoying now could rise dramatically the other direction. In addition insurance companies that write work comp may start to question writing policies in the State due to the cost containment climate being w...

Image via Wikipedia While I'm sure that the acronym for the Occupational Safety and Health Administration, OSHA , doesn't give small business owners a warm and fuzzy feeling, the agency does offer more than just their standard enforcement activity. Advertised on their website , www.osha.gov, they have a compliance assistance web page , http://www.osha.gov/dcsp/compliance_assistance/index.html, that provides small business' information directly relating to compliance and they also offer free onsite consultation services to help in compliance and in the prevention of onsite injuries. The site is full of information and can only help. Take a look sometime. Remember, it's FREE.

As a conquence from the Democratic administration, the EEOC ( Equal Employment Opportunity Commission ) has been empowered to investigate and litigate employment claims more than ever. The agency has now a bigger budget and increase staffing to follow up on claims. As a small business owner it is important to realize that you may not be under their radar just because you are a small business. The EEOC is looking at systemic policies and behavior which could target even the smallest of companies. This could mean that a discrimination claim against your business by one employee could result in the EEOC looking at your business for a broad or systemic problem for all your employees. In other words the one employees claim is looked at as the "smoke" consealing a "fire". The best risk strategy is to have sound employment procedures and manuals that every employee has signed off on. Also to make sure you document all actions and issues. Finally look into purchasing...

The Central Delaware Chamber of Commerce is going to work with the Delaware Insurance Department to promote the work place safety program. The safety program allows qualified business owners to save up to 20% on their work comp premiums. I know my agency has promoted this program for the last decade and have had great success in keeping premiums down for our clients . With the recent rate reductions and the opportunity to apply for the work place safety credits, Delaware employers and small business owners have some of the lowest work comp rates in the nation. Just a few years ago Delaware had the 4th highest. The insurance companies however are monitoring the rate reductions cautiously. Delaware has a hard job, it has to balance the proper rates to charge from a smaller worker population , that still allow insurance companies to make money. If not, the companies may stop writing work comp business in the State which would...

The Senate is scheduled to vote on health reform as early as next week. The buzz around the insurance industry is that health insurance companies are going to be taxed to pay for it. Right now there is talk in Washington about hitting insurance companies with a "windfall" tax from the profits they are expected to make with 50 million more customers in the system. This again is scaring me a little for my small business owner clients. Usually increase in big corporate taxes and or expenses always seem to trickle down to the business owner's pockets. That is what would happen if the insurance companies are taxed to pay for the health reforms. You can count in it. Until next time, be careful out there and know your risks.  K