CONNstruction - Winter 2008 - (Page 35)

© BWAL | DREAMSTIME.COM feature By Angelo DiMatteo Vice President of Construction Litchfield Insurance Group, a CCIA Member Do not let declining Workers’ Compensation rates lull you into complacency. To a contractor, do the words, “insurance” and “money” belong together in the same sentence? If so, thoughts most likely turn negative. For many contractors, insurance expense hinders profit. Price cycles rule the insurance industry, and in a reduced price cycle, too many contractors become complacent about their Workers’ Compensation program. Now is the time to be more diligent. Paying close attention to a very controllable insurance cost allows you to pay the lowest possible premium for your workers’ compensation. That should translate into a competitive advantage over competitors who do not understand how Workers’ Compensation works. The goal is to turn your insurance expense into profit. The experience modification rating (EMR) allows insurance companies to recapture money paid to and on behalf of injured employees. Unlike other insurance, the EMR allows you to control your workers’ compensation costs and is the only line of insurance that can be controlled by your actions. A contractor should at a minimum focus on unsafe acts and unsafe conditions. The more safe acts by workers will decrease unsafe conditions, where most carriers focus their attention. Many general contractors and risk managers will not even allow contractors with experience modification factors over 1.00 to bid on jobs. A low experience modification factor should help you win jobs against your competitors who have higher experience modification factors. Experience rating is designed to measure whether your company’s workers’ compensation losses Contractors Must Become More Diligent During Workers’ Compensation Rate Decline CONNstruction / Winter 2008 / 35

Table of Contents for the Digital Edition of CONNstruction - Winter 2008

CONNstruction - Winter 2008
The Next Phase of Contracting Reform
A Return to Trust – Partnering
Building Our Future and Theirs
New “Green Buildings” Law Presents Opportunities and Challenges
Internet Searches and Job Applicants
First Impressions
ConnDOT Hosts the Nation’s Transportation Officials
Reducing our Environmental Footprint
Connecticut Apprenticeship Program Handles Industry Changes and Demands for New Workers
2008 Construction Career Days Program
Contractors Must Become More Diligent During Workers’ Compensation Rate Decline
UCAC General Membership Meeting/Lifetime Achievement Award
John “Jack” Costello Memorial Scholarship
Marvin Morganbesser’s Retirement Dinner
Index to Advertisers

CONNstruction - Winter 2008