b'The Workers Compensation Rocket - Part One (Editor\'s note:This is Part One in a series ofRate Classification arric/esonworkerscompensarionand itsEmployeesarecategorizedinarating effect on the MRCA membership.Part Twoclassification accordingtheof will list the things companies can dotolowertotypework they do,usually there is a separate class their workers compensationcosts,and Partand for each type ofemployee does. Three willthethings MRCA memberswork an examine are doingtodeal with these costs,focusing specifically on employeetraining.If youfirm gave several reasons for the hikes inPure Premium Base Rate would liketocomment on this issue, or talkworkers comp premiums:The premiumforeachclassificationis about thetraining programs your companydetermined statistically by leveldanger hasinsritutedas asolurion, please call theof Medical costs are skyrocketing while thein each job.Insurance companies use a MRCA officeat913/599-6600.)insurance system is accused of lendingrunning average of every other insurance itself to physician abuse.company\'s past experience. Workers Compensation has long been aBoth "work-related injury" definitions boneof contentionin theconstructionand attorney involvement in workersEach Employer\'s industry.In his report, "How to Controlcomp claims is growing every day, even Work Comp Insurance Costs," Robert J.though the system is designed to preventExperience Rating Will explains that it started out as a greatlitigation.Each experience rating adjusts according idea to fill a dire need during the industrialStates have boosted the basetomuch money has been paid out and how revolution, butidea maturedcompensation benefit levels for injuredcould potentially be paid out on injuries. as theand the reality ofworkers.Although there are mathematical formulas dealing with human beings began to develop, many in the industry realizedStates have allowed insurance firms toinvolved,basicallythemore moneyan they\'d created a monster.charge higher rates because they claiminsurancecompanypaysoutforan they are paying out more than they areemployer, the more money the insurance As a result, todaysystem is plagued bytaking in as premiums.companyneedsin premiumsfromthat our employeeswhowant more moneyandemployer. more time off; employers who wantSteve Hoselton, General Counsel for Union lower Roofing Co., Inc. inNext month:What companies can do to premiums;doctorswhodon\'twantChenoa, Illinois, feels bruntthose higher rates.islower their workers compensation costs. malpracticesuits;insurancecompaniestheof"Illinois who wantone of five states that lead the nation in bigger profits; insurance agents who want easier commissions; attorneyspayouts," he says."You have to write a(Information in this article is reprinted with who want hourly fees; judges who makepercentage of your business in workerspermission of Professional Roofing big decisions on small technicalities; unionscomp in order to do business inMagazine.) Illinois." who want seniority lists; legislators who want votes; and businessmen who don\'tKent Underwood, chainnanthe BusinessTopcoat of understand enough ofgoing on toRoundtable\'sConstructionCommittee,Continued from Page1 what is challenge the system.says that roofing contractors will continue to tobeamong the hardest hit by high workersapplicator agreements has beenlimit the InarecentNRCAsurvey,roofingcomp insurance costs until both the roofersroofing contractor\'s liability to a period of and overall construction industries improvetwo-years following installation of contractors ranked insurance thirda listthe roof. on oftheir safety records.Thisgoalhasbeenachievedinthe their business concerns. Contractors are reporting they have suffered a heavy blowTOPCOATAgreementthroughthe fromskyrocketingcostincreases,According to Robert Will, your workersamendedlanguageofParagraph4( d). d), especially for workers comp."Workerscomp premium costs are calculated basedParagraph4(however,shallnotbe comp rates have beenthe increase for usonsixmainstipulations:insuranceinterpretedtoaltertheApplicator\'s on companyoperatingexpensesandobligationsunderParagraph1 for about the last four to five years," says(a), MikePettigrewPettigrew and Sons, Inc.investments,insurancecompanyprofitconceminghisdutytofollowTOPCOAT\'s of in Fort Wayne, Indiana. The company paidmargin, thecost of helping acompanywritten specifications, details, installation aclaimofalmost$90,000whenonemanageitsworkerscomp,the costofinstructions and procedures as furnished employee was injured onjob.helping an injured worker get healthy again,by TOPCOAT.The amended Paragraph the the cost of handling the claim, and thealso shall not be interpreted to alter the According to an article in the March, 1991agent\'scommission.TherearealsoApplicatorsobligationtoindemnify categoriestoandTOPCOAT under specified conditions. issue of Professional Roofing magazine,usedcalculate premiums, research done by a risk management andamong them are the following: insurance consulting firm showed that inThe TOPCOAT Applicator Agreement, as 1990,U.S.employersfootedover $60amended, is fair and reasonable, and we billion in costsjob-related injuries. Therecommendit for executionbyMRCA for members. Page2'