Peter Cross of ISU Insurance highlights the real cost of a Workers Comp insurance claim to a Business.
Transcript:
Peter: When you really look at the hidden balance sheet that occurs and goes along with claims, it's not just premiums you're paying, it's the management time that's tied up addressing claims, it's the supervisor's time tied up in addressing claims, and when you really look at what it's costing you, if you spend $10,000 on a claim, they say that it's a $50,000 cost to the ...
Peter Cross of ISU Insurance highlights the real cost of a Workers Comp insurance claim to a Business.
Transcript:
Peter: When you really look at the hidden balance sheet that occurs and goes along with claims, it's not just premiums you're paying, it's the management time that's tied up addressing claims, it's the supervisor's time tied up in addressing claims, and when you really look at what it's costing you, if you spend $10,000 on a claim, they say that it's a $50,000 cost to the business.
Bill: Oh, is that right? It's a five times magnifier because of the soft cost of administrating and pulling it together and all the paperwork and everything?
Peter: Correct. For a simple example: if you have someone who's out for about 2 weeks and you've got to replace them, you've got the cost of insurance that would potentially go up, the replacement of that person, the retraining of that person, the lack of productivity that comes out of it, the increased potential for another claim, and all those other things that are residing with it. So, when you start to amplify and put all that detail in, it really can be anywhere from a 3 to 5 times magnifier like that.
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