Financial forecasting is crucial for any employer, especially when it comes to managing major expenses. Since workers’ comp costs are among the top expenses for manufacturers, it’s no doubt accurate L&I premium forecasts can provide significant benefits.
What are these benefits and why do we strongly suggest that “let’s forecast your premium” should be one of the top five things you hear from your Washington workers’ comp partner or Retro provider? Let’s review.
Here are some of the top reasons for having this vital information at your fingertips.
- Allocate Financial Resources Effectively: Ensure funds are available to cover future workers’ compensation premium payments and avoid overspending in other areas.
- Develop and Enforce Safety Programs: Implement safety programs and invest in employee training and equipment to reduce workplace injuries and minimize risk.
- Optimize Claims Cost Mitigation: Adjust claims strategies such as more or less kept-on-salary, adding new and approved light-duty jobs.
- Plan for Rate Increases: Be ready for potential rate increases and avoid unexpected premium hikes.
- Make Informed Operational and Staffing Decisions: Make long-term operational decisions with confidence and informed staffing adjustments.
- Evaluate Retro Group/Work Comp Partner Performance: Less-than-ideal premium forecast (or services)? Begin evaluating a move sooner rather than waiting for things to worsen.
“When working with our Retro group and claims program participants, we ensure they know where they stand, where they’re headed and why. When they request a premium forecast, our answer is always an enthusiastic yes! We love digging into the numbers to provide insights on premium forecasts, kept-on-salary break-even points, and more. By keeping premiums at a minimum (our goal for everyone), we all win.”
Do you know what your premium will be over the next two years? Are you able to access premium forecasts from your current workers’ comp or Retro provider?
If you’re unsure we’d love to hear from you. We can talk more about how we Washington employers with such strategies and how we may assist you too!
