As the economy in the construction field continues to struggle, cost-cutting becomes a necessity. In order to even make payroll month to month, financial decisions have to be made. One of those decisions is whether to stay with the Retrospective Rating Program offered by ABC. Other association sponsored programs may seem to make financial sense in the short run by offering lower association dues or program fees, but careful consideration must be taken to determine whether a switch of programs is truly the best decision. This three-part series will identify the benefits you should look at before switching programs.

The first benefit that should be explored is what type of claim-related services can you expect from your retro program? Many retro programs offer various levels of service, and it is important for you to determine what type of service you are willing to pay for. Some programs only offer claims management once the claim has reached a certain dollar value. This can lead to higher claim costs against your company, thus yielding lower financial retro returns. While you may not have had a claim for a couple years, who will help guide you through the process and be your advocate when you do? With ABC you always have a dedicated claims manager and loss control manager through ERNWest, who will pick up the phone and take care of your workers’ compensation needs, no matter how big or small the claim may be. You also receive financial advice on whether light/modified duty, or KOS makes sense for your company and your needs. These are just the highlights, but if you are considering another program, ask yourself this question: Can you afford not to have ABC providing you with workers’ compensation services?

Next month we will identify the hidden costs and the true value of a retrospective rating program. Did you know that some associations take a portion of their member’s refunds? While dues for one association may be cheaper, do their overall refunds truly stack up? These questions and more will be answered in the next two months.