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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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