db.com

Today, I closed my first account in California.  They are an industrial business with truck drivers, mechanics, and various forms of labor.  Like every corporation in America, they have workers’ comp claims.  This company hired an employee and after three months on the job, a back claim was filed.  We KNOW this was either a preexisting condition or the employee was not physically capable to safely perform the physical demands of the job.  Since this candidate wasn’t tested, there was no way to know.  This claim cost the employer over $250,000! 

Now, today, this employer can operate a safer work place and in the end provide better services to their customers.  Additionally, this employer can become even more competitive in the market place by redirecting previous expenses on health costs (non income producing costs) and pass those saving to their customers.  In the end, employers who are proactive have capacity to gain more market share due to increases in their contribution margin.  They will employ a healthier workforce, the costs for their workers’ comp insurance premium will diminish, and they will see reductions in the personal health insurance because they are employing a healthier more capable work force.