“Sales to Pay for Claims” Calculator
Now that you have downloaded our PDF showing you how to easily calculate your Minimum Experience Modification Rate and your Controllable Premium, let's put those KPIs to work for you.
We'll use Controllable Premium as an input to calculate how much in sales it will take your company to pay for its work comp claims. And, we can likewise compute how much in sales it takes to pay for your work comp program.
Then, below, we'll explain one way clients have been able to put these new KPIs to good use.
Note: If you haven't yet downloaded our free PDF showing you how to quickly calculate your Minimum Experience Modification Rate and Controllable Premium, click the Download button.
“Sales to Pay for Work Comp Program” Calculator
Put "Sales to Pay for Claims” To Work For You
Are you in a Risk Management Position and want to get you leaders' attention for cost reduction, protective equipment, or safety initiatives?
Or, are you an executive who needs buy in from division and department heads for adoption of new procedures, safety programs, etc?
Dollars and sense always get one's attention. And, showing your colleagues how much in products and services you had to sell (and must sell moving forward without a change) to pay for your accidents.
The Sales To Pay For Claims calculation represents the true cost of workers’ compensation accidents.
In other words, Sales To Pay For Claims represents the true cost of workers’ compensation losses on the bottom line. That amount cannot be reinvested in your company. The true cost is much larger than what's observed on the loss report.
Let us know if you have any questions or if you are on a program (like a deductible, retro, etc.) where the premium calculations are not as straight forward as a guaranteed cost program.