High workers comp rates hurting your gymnastic’s business?

How can a gymnastics business protect their coaching staff from on the job injuries, who teach handstands, rolls, cartwheels, and layouts with half twists?  As with any occupation, certain inherent risks cannot be mitigated.  So what can the gym owner do to help manage their workers compensation despite the higher likelihood of injuries?

Backspring Photo

Here are two suggestions:

  1. Develop a good relationship with a medical clinic inside your Medical Provider Network (MPN).
  2. Consider paying first aid claims out of pocket.

The MPN is a network of medical clinics that have agreements with workers’ compensation carriers to treat injured employees. These medical clinics are not all uniform. Ask the medical clinic about their treatment for common gymnastic injuries like torn muscles and ankle sprains. Compare their costs and procedures to industry averages. Benchmarking protects the business from inflated medical costs and unnecessary procedures, and will also clarify what types of injuries to anticipate from your operations.

Consider paying for first aid claims out of pocket to reduce the number of claims submitted to the carrier. Between the two major rating factors on the policy, one being the severity of the claim, and the other frequency, this will help the later. A discussion with your insurance broker and medical clinic will assist in determining if this strategy makes sense.

Gymnastics businesses employ thoughtful, energetic, and caring professionals. Hearing stories of workers comp increases, year over year due to small first aid claims, which if paid out of pocket would save thousands, is frustrating and unnecessary. Take the time to implement the above and watch those rates go down.

If you found this article helpful, please play it forward, and keep gymnastics businesses profitable.

-Tyler

Tyler Chalk is an employee at Embroker, Inc. All changes to insurance policies and medical clinics should be discussed with your insurance broker. The suggestions mentioned pertain to California-based workers compensation policies, due to California’s status as a non-ERA (Experience Rating Adjustment) state. More information on first aid claims is available here; http://www.dir.ca.gov/dwc/firstaid.htm or,http://www.statefundca.com/home/StaticIndex?id=http://old.statefundca.com//claims/FirstAidInjury.asp You can reach Tyler at tyler@embroker.com. California Insurance License # 0D96236

Case Study – Medical Device Manufactures need E&O too!

Medical device manufactures don’t require a lot of convincing to understand the need for Completed Products Liability.  Even when a medical product seems totally benign, they know that people can, and will find ways to hurt themselves or break things as a result of using it.  But what happens when the medical product/device hurts the customer of the client, and not the client themselves?

Medmarc Case Study – Original Equipment Manufacturers Tooth hurting

As the case study from Medmarc explains, unless you have E&O insurance you could be out of pocket for a lot of money!

 

FDA Proposed Label Requirement Changes

Thanks to Gene Russell, President and CEO of Manex for this article; http://eastbaymanufacturinggroup.com/taking-a-closer-look-fda-proposed-label-requirement-changes/

It will be nice to read the back of a product label, and not have to decipher it into a percentage of daily value based on what we “should” be eating.  We will finally get the “per package” calories and nutrient information spelled out in layman’s terms.

More info can be found here: www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/default.htm

Cyber insurance is becoming mandatory…

The current trends indicate that hacking, data breaches, cyber extortion, and cyber-crime will continue their upward climb.  There were more than 3500 Data breaches from 2005 through 2012, affecting 606,848,907 records according to Privacy Rights Clearinghouse.  And this trend looks likely to increase over time.

Cyber insurance will shortly become one of the more important policies you will purchase.  Just think, there are millions of people all over the world, 24/7, trying to get private information to sell in black markets.  Even if you’re sure, that you’re not a target, don’t forget that the businesses you rely on to keep your operations going can affect you as well; i.e., your supply chains, online providers, cloud storage providers, and others.

The top five types of security risks include;

  • Network Security (virus, SQL Injection, Malware, Trojan Horses, Etc.)
  • Physical Loss or Theft (lost or stolen laptops, phones, physical file security)
  • Cyber Extortion (gaining access to sensitive data and threatening to release it)
  • Employee Mistakes (IT professionals can’t prevent these types of losses)
  • Denial of Service Attack (targeted attack to slow or stop a network)

As the trends in Cyber related events increase, so are the penalties from the Fed and State.  For example, the Database Protection Act (SB 1386) requires companies that do business in California, or that have customers in the state to notify the customer promptly whenever his/her personal information may have been compromised.  Failure to notify clients of can result in civil court appearances, and penalties.  A business owner’s time is very valuable.  This fact alone can be sufficient enough to justify having coverage.

“There are only two types of companies.  Those that have been hacked and those that will be” – Robert Mueller, FBI Director, 2012