An Ounce of Prevention in Understanding Patterns and Causes of Work Injuries

A wise person once said, "The only GOOD claim is a closed claim." Successful Texas work injury programs take this wisdom even further to say, "The only GOOD claim is the one that never occurs!" This month we highlight a case study illustrating how PartnerSource can help clients understand patterns and causes of work injuries and help devise a plan to mitigate future losses.

Work Injury Loss Prevention: A Matter of Life and Death

A company doing business in Texas, an organization now celebrating almost 15 years with its Texas injury plan, was faced with a crisis during the early years of its program. During a 10-month period spanning two policy periods, this employer experienced two fatality claims and two catastrophic injuries resulting in millions of dollars in damages and total incurreds. As a client receiving ongoing support from PartnerSource, we worked together on a comprehensive, multi-faceted response and action plan:

1. Claims Oversight: PartnerSource worked with the company and claims administrator to ensure these large losses were handled and resolved promptly. This involved coordinating claim, medical and legal resources to ensure the injured workers were covered to the extent possible under the Texas injury plan. When losses exceeded the plan’s maximum benefit limit, PartnerSource then provided customized benefit and settlement solutions that mitigate future litigation and claim exposures.
2. Communication and Awareness campaign: The leadership of this company ensured every person in the company, from top to bottom, understood that their work involved life or death decisions. The company’s internal communications were completed soon after these catastrophic accidents occurred, while the emotional impact was still fresh. The company’s timely, compassionate and thoughtful communications to keep their employee’s keenly aware of these losses set its safety and loss prevention culture for the future.
3. Strategic Training to Address Accident Root Cause: In addition to communication and awareness programs, the company created new training and protocols that targeted the specific root cause of these catastrophic losses. This involved building new curriculum and improved training that benefited an entire industry. Its impact was felt even outside of the company itself.
4. Claims Data Analysis: PartnerSource also provided custom reports and data analysis comparing actual incurreds under the Texas injury plan with an estimated value of workers compensation benefits for these specific catastrophic claims. This analysis affirmed this client’s decision to opt out of workers compensation and continue to manage its occupational injuries through its Texas injury plan. The data showed measureable projected savings of approximately 38% compared to workers compensation benefits on similar catastrophic losses.

THE RESULT:

Through its work with PartnerSource, the company experienced:

• A sustained 40-50% reduction in claim frequency;
• Claim frequency dropped from 52-60 claims per year (during the two ‘crisis’ years) to 27-35 claims per year in the subsequent 5 years after the catastrophic claims;
• Claim severity dropped 81% the following year with a sustained drop in frequency; and
• A total estimated savings for this program compared to workers compensation of $8.8 million.

How can PartnerSource help you understand your loss causes and high claim cost drivers to improve your program’s performance? Contact your PartnerSource team lead or claim director today!