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PMA Insurance Group
April 2006
Directions
PDF versions of Directions at:
http://www.pmagroup.com/directions.htm

 

 

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Managing Your Total Cost Of Risk


The financial impact of work-related accidents reaches far beyond the surface costs.

In 2006, employers are facing increasing stresses to their bottom lines, impacted by issues such as skyrocketing employee health care costs, global competition and worker productivity concerns. To confront such intense pressure, it is imperative that all costs are identified, analyzed and addressed with solutions.

One area that holds significant potential for employers to achieve financial gains is addressing the total cost of risk. An organization's total cost of accidents and other risk goes far beyond the surface costs of claims. In fact, it has been estimated that the indirect cost of accidents ranges from one to twenty times the direct costs, depending upon the direct cost of the accident. For example, costs quickly rise when your employees are absent from the workplace. Lost productivity, decreased employee morale and the cost to train new workers are just a few of the challenges you may face if employees are absent from work. In addition, indirect costs arising from property, general liability and commercial automobile claims can also be very expensive.

The good news is that employers can significantly reduce their total cost of risk. The PMA Insurance Group has all the risk control and claims management processes already in place to help ensure that you're achieving maximum cost savings. All you need to do is to begin to capitalize on them.

In this issue of Directions, learn about PMA's Alternative Risk Transfer options, the myriad of ways that you can decrease your total cost of risk, from proactively implementing risk control solutions to promptly reporting claims to returning employees to work. Also, read about the successes of Prince William County, Virginia, a client of our Third-Party Administrator, PMA Management Corp.

 

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