Vigilant Blog

News, trends and analysis in employment law, HR, safety & workers' comp

Feb 25, 2020

Part 2: Strong refunds are achieved by lowering workers’ comp premiums

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This is the second in a series of letters deconstructing Vigilant’s projected 30% refund for the most recent Retro plan year. In the first letter we focused on demystifying the black box of the Washington Department of Labor & Industries (L&I) workers’ compensation system. This letter shares why a 30% refund starts with a focus on lowering the workers’ compensation premiums paid to L&I in the first place. Retro refunds are fantastic. Paying less workers’ compensation premium up front is better. Helping you accomplish both is our ultimate goal.

Vigilant has invested heavily in the capability to help companies accurately forecast and positively influence future workers’ compensation premiums. Our analysis helps employers develop strategies and then make real-time decisions based on the impact to future premiums. With our counsel, participating companies proactively lower their workers’ compensation premium over time.

For example, should you implement Kept-On-Salary (KOS) on a specific claim? Many vendors can help you weigh the cost of KOS wages (real dollars out of your pocket) against a reduction in your developed losses (not real dollars in your pocket and variable over time). That’s helpful information, but doesn’t directly inform your return on investment (ROI) analysis. Instead, we help you understand the cost of KOS wages (real dollars out of your pocket) compared to the corresponding reduction in future premium costs (real dollars in your pocket).

This ROI analysis, based on sophisticated data analytics, doesn’t just apply to claims management strategies. We use the same process to inform decisions about loss prevention efforts, capital investments, mergers/acquisitions, and more as they relate to your workers’ compensation costs. We equip you to make the best business decisions possible by calculating the impact today on real dollars in the future. While many within the Retro community discuss refunds (for good reason), we believe that consistently strong refunds are best achieved by understanding and developing strategies to lower your future premiums. We’d love to share more specific information with you about how this is possible. Visit our website,, and then give us a call.
Best Regards,
Derek Glos, Vigilant President and CEO                        

This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult legal counsel.