Risk Management
In today’s economy, businesses and municipalities need every advantage to be competitive in the marketplace. When a company, city, or county pays higher than necessary Workers’ Compensation premiums, that fact is directly reflected in their cost of doing business – and who has money to throw away these days? Consider the following Cost of Loss averages:
Cost of Loss
| Injury | Average Claim Cost | Average Time Off |
| Carpal Tunnel Syndrome | $75,000* | 8-10 weeks |
| Soft-Tissue Back Injury | $80,000** | 6 weeks - 6 months |
| Back Injury -
Neurological (Non-Surgical) |
$90,000 | 12-15 weeks |
| Back Injury -
Neurological (Surgical) |
$130,000*** | 20-30 weeks |
| Loss of a Limb - | 21 weeks**** | |
| Finger | $18,000 | |
| Thumb | $25,000 | |
| Hand | $35,000 | |
| Arm | $60,000 | |
| Leg | $85,000 |
Table 1 –
* Cost shown for Carpal Tunnel is per hand. However, cases often
involve both hands.
** Soft tissue back injuries almost always lead to future claims.
*** Neurological back injuries (Surgical) often lead to future
claims, with Re-training and Wage Differentials of $200,000 to
$250,000. Settlements, plus TTD & Medical average $380,000, and can
be as high as $500,000 per claim.
**** Wage Differential for Loss of Finger, Thumb, or Hand average an
additional $79,250 per occurrence on top of Workers’ Compensation
Claim. For Loss of Arm or Leg, the average additional Medical and
TTD is $88,250.
Despite these Cost of Loss averages, Absolute Risk
Management Strategies professionals’ unique approach to
Risk Management helps our Clients actually manage and reduce your
Workers’ Compensation and Loss Time Injuries claims. In fact,
ARMS Clients have enjoyed as high as a 29%
reduction in their Workers’ Compensation and Liability premiums over
previous periods.
In addition to money paid in Workers’ Compensation Claims, Medical, and TTD, Workers’ Compensation losses can contain many hidden costs. But just because you can’t see them does not mean that they don’t hurt your business. Here is the real impact:
If you operate your business at a 5% profit margin, and you incur
a $250,000 Work Comp Loss, your company would need to generate
$5,000,000 in revenue to make up that loss.
Cost Incurred $250,000
Your Profit Margin x $ 5%
Total
$5,000,000
That’s $5,000,000 in revenue for the equivalent of a soft-tissue
back injury, a carpal tunnel case, and the cost of a replacement
worker and medical costs. But that’s also exactly where
Absolute Risk Management Strategies can help your
business!
Call Absolute Risk Management Strategies
today to receive your Free Consultation, and find out how
ARMS can help make your business “A Safer Place to Be!”
