Q. What makes The Murphy Insurance Group’s risk management department better than other insurance agencies?

A. Teamwork and knowledge. Our staff works together to reduce your premium costs. Our claims managers work throughout the year to prevent problems from becoming costly. Being proactive at the beginning of the claim process can save thousands of dollars by the time the claim is closed. We also work throughout the claim’s life to make sure reserves are set properly and that the customer and carrier are working together. The final step ensures that claims are properly reported to the state so your experience modifier is accurate. Our involvement allows you to concentrate on your business while we watch this portion for you.

Q. What is "experience modification"? How is mine calculated?

A. Experience modification is a way to adjust workers compensation premiums that are set by the state and can be raised or lowered based on three years of claim history. A copy of the experience modifier is mailed to you annually from the Workers Compensation Rating Bureau. If your experience modifier is above a 1.0, you are paying more for your workers compensation premium than the average company in your industry. The actual formula used is a complicated one. We have software that lets us check your experience modifier, run hypothetical scenarios and even forecast what your experience modifier will be before the state issues the actual calculation.

Q. What if the reserves in my open claims can’t be lowered?

A. There are some claims that can’t be lowered due to the severity of the injury or pending legal action. Unfortunately, these reserves are included in the experience modification calculation. We make sure that you know why these claims are open, and work with you to reduce reoccurrence in the future. We also monitor the status of the claim until the claim is settled and the experience modifier is appropriately adjusted.

Q. What happens if problems and errors DO occur after my claims information is sent to the workers’ compensation bureau?

A. Errors are correctable. That is why we review all experience modifier worksheets as they come in. We make sure that the claim and payroll figures are accurate. It is not uncommon to find errors that result in experience mod reductions of 10-to-20 percent. When we find errors, we follow-up with the carrier to see that appropriate changes are made, saving you money.

Q. How do Murphy’s claim managers provide constant monitoring of my claim?

A. We periodically check with the carrier’s claim adjuster and the client to make sure the claim is progressing properly. We use our knowledge of claims handling and experience modification processes to seek closure or fair and accurate reserves, proper claims management by both the customer and insurer, and let you know when significant changes occur.

Q. How do you make sure the reserves are set properly? What if they are not?

A. We regularly track the progress of every claim. Our experience in dealing with other similar claims can alert our staff of unusually high reserves or treatment. With our knowledge of your industry and your individual circumstances, we discuss our concerns with the insurance company and keep you informed of important developments.

Q. What is the incurred amount of a claim?

A. When a claim is reported to the carrier, the adjuster will set a dollar amount that they expect the claim to cost after all medical treatment, wage loss and permanent disability is paid. This projected and paid amount is referred to as the incurred value and is used in calculating the experience modifier. As bills are paid, the remaining amount or reserve is reduced. If not monitored, the incurred value may be set too high, causing your insurance premiums to be higher than they should be.

Q. How do you make sure the adjustors are prioritizing my claim over their other clients’?

A. The squeaky wheel gets the most grease. Case loads for many claim adjusters are huge. When claims sit there with little or no activity, they become low priority. By staying in contact with you and the adjusters, we relay important information and make sure priorities stay with our clients.

Q. How does closing the claim ASAP keep down my insurance costs?

A. Getting rid of the reserve on a claim means that the amount of claims reported to the rating bureau is reduced. This keeps your experience modifier down, thus keeping your insurance costs lower.

Q. Why is a dedicated safety-engineering professional necessary?

A. Because our goal is to provide you with service geared toward reducing your exposure to loss. While there are other sources to gain safety information, isn’t it nice to be able to make one call to get all of your questions answered? Insurance companies, OSHA and other regulatory agencies can provide some answers, but our risk management department’s main priority is not protecting underwriting profits or enforcing worker safety standards. Our main goal is to control your long-term insurance costs by reducing your exposures.

Q. What makes Murphy Insurance’s safety professionals better than the competition?

A. Murphy Insurance employs risk management professionals with more than a decade of experience in loss prevention and workplace safety for industries that reflect our customer base. Not only can our risk management staff provide practical suggestions to management that are designed specifically to address your companies specific needs, but we can provide training to your staff that will motivate them to improve and also share your achievements with the insurance companies.

Q. What is a potential safety hazard?

A. A potential safety hazard is any exposure capable of producing a loss. We will use our years of experience to identify exposures to loss and provide realistic solutions before they result in a loss. Having an outside professional review your operations is a great way to analyze your exposure to loss.

Q. What is light duty work?

A. Light duty or "Return to Work" programs are how you prevent a claim from turning into a lost time claim. Not only will we tell you how and when it makes financial sense to provide light duty, but we can give you the tools and training it takes to make these programs work for you. We can even work with you to identify light duty positions and creative options when you just cannot accommodate the restrictions in your business.

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Q. What are some of the tools and programs provided to clients to encourage better decisions and greater health among employees?

A. Examples of tools include education of client leaders and employees through consultation with a Murphy account executive, industry publications, seminars, consultation with other industry experts, employee presentations and employee wellness teams. The Murphy sponsored online portal, known as our "Client Community", provides easy, efficient access to regulatory answers and healthcare information. Programs include long-range strategies, plan designs, wellness programs, employer contribution strategies and consumer driven plans, such as Health Savings Accounts and Health Reimbursement Arrangements.

Q. Where do you come up with the "ideas"?

A. Ideas are generated from many sources, including ongoing formal education, seminars, the Murphy professional team, industry reading, industry colleagues and Murphy clients themselves. Ideas are best generated from an attitude of creativity and teamwork while developing solutions with our client leaders.

Q. How can you ensure that health insurance costs are stabilized into the future?

A. We ensure that the best strategies, tactics, products and programs are utilized to stabilize health insurance costs. Of course, no one can know the future or completely control it. It makes sense, however, that those organizations that apply forethought, excellent resources and intelligent action to a difficult problem will have an advantage in the future over competitors who do not.

Q. How do you determine which strategy, program and plan is best suited for each client?

A. We begin by listening to the leaders of our client companies to learn their values, goals, problems and opportunities. Then, by asking the right questions and contributing key ideas and information, we work with the client to create their best strategy. We research and develop options to serve this strategy. Presenting our client with these alternatives, we make them aware of the advantages and disadvantages of each course of action. Once our client has formed their judgment, we turn our energies to the implementation and ongoing support of their decision.

Q. How can Murphy’s Forecasting plan "predict" the future?

A. The experience modifier uses three years of claim and payroll data that has a one-year delay to give claims a chance to close out. We take data from the most recent policy year and project where the following years experience modifier will be several months before it would actually be used. We can even use our software to set a goal for future years experience modifiers.

Q. When should an injured employee return to work?

A. Claims involving more than three days away from work can result in large increases in experience modifiers. By utilizing our software and understanding of the workers compensation laws, we give you advice on whether returning an employee to work on light duty makes economical sense.

Q. What is the "proactive approach" used to point out potential future problems?

A. Too many companies wait until their insurance premiums are too high before taking action. That is the reactive approach. Our risk management department can analyze your exposure to loss and recommend ways to keep losses from happening. Our claims management staff will suggest ways to reduce the effect of claims on your experience modifier. Mainly preventing lost time, but also things that raise red flags. Taking action before problems are encountered is the proactive approach.

Q. How do you help companies anticipate increasing costs?

A. If you knew gas was going to cost $10 per gallon next year, you would probably take steps to reduce consumption and start saving to pay for that increase. By forecasting your experience modifier, we help you budget for future insurance costs and can layout an action plan to reverse the trends that are causing your premiums to increase.