hidden costs
Employers Comp Advocate's services are so unique that not using them will cost you money. That's because the practices of insurance carriers and TPAs may vary, but their problems are often the same. If you think your current quarterly workers' compensation reports tell the whole story, then you may be in for a big surprise.
You likely don't hear about the effects of a claim's hidden costs. So what you thought was a bargain either in claims handling or in premium turns out costing you more money than it should. Whether your company is self-insured or has a guaranteed cost program, hidden costs can erode your bottom line. See what kinds of hidden costs occur in a not-so-perfect world.
Uncontrolled Direct Hidden Costs
Many workers' compensation claims handled without Employers Comp Advocate continue to suffer from direct hidden costs — unnecessary expenses from services or procedures that don't produce the correct results or are deemed inappropriate.
Odds are you won't ever hear about direct hidden costs because your insurance carrier/TPA thinks about these expenditures as their cost of doing business. These areas are, more times than not, found within the claim's allocated expenses.
Uncontrolled Direct Hidden Costs are the result of:
- Lack of thorough initial investigations
- Lack of follow-through in claims actions plans
- Increase in off-loading responsibility to vendors
- Unnecessary litigation expenses
- Inaccurate claim payments
- Inexperienced claims & loss control personnel
Uncontrolled Indirect Hidden Costs
You think you're done after you've paid your premium or TPA fees. But hidden costs impact your bottom line whether they're handled by an insurance carrier or TPA. What appears to be reasonable doesn't seem that way when you see the big picture. The picture only Employers Comp Advocate can show you. See how your premiums or fees are only the beginning due to hidden costs.
Uncontrolled Indirect Hidden Costs are the result of:
- Time lost by supervisors in training new employees
- Paying replacement workers
- Decreased employee morale and efficiency
- Overhead costs while work is disrupted
- Loss of expertise or production by trained worker