The opportunity for employers to maximize their workers compensation program begins before an injury occurs. Total cost of risk for an organization is comprised of both the direct and indirect cost of their overall workers compensation program. By choosing a dedicated insurance provider who acts as a partner, employers can dramatically reduce their total cost of risk.

Every workers compensation program is an investment. If employers are willing to commit the time, energy, and financial support to understand what is beneath the surface of a claim, before it happens, they have the opportunity to create an environment designed to support improved cost savings and overall workplace productivity.

Employers who look beyond the premium and educate themselves on what contributes to total injury cost, experience an increased return on their overall program. Working together with their workers compensation provider, employers can take proactive steps to ensure they are creating a workplace focused on prevention. Addressing an organization’s total cost of risk will ultimately lead to better long-term business outcomes. This includes creating a workplace safety culture, implementing effective hiring practices, and focusing on wellness.

At Key Risk, we believe in developing long-term partnerships with our clients by delivering industry leading expertise and maximizing the overall investment in their workers compensation program.

Thank you for the opportunity to be a part of your business.

Key Risk is a member company of W. R. Berkley Corporation. Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued.

For more information on solutions available from Key Risk, please contact your Key Risk Representative at 800.942.0225.

W O R K I N G T O G E T H E R . D E L I V E R I N G B E T T E R O U T C O M E S .

Better Outcomes In Workers Compensation

W O R K E R S C O M P E N S A T I O N

a W. R. Berkley CompanyTotal Cost of Risk

MKT.10.13.192.F

Will your clients’ workers compensation programleave them under water?Total cost of risk is comprised of administrative costs, business losses, premiums and risk management expenses. Premiums do not indicate the true cost of an injury to an organization; as less serious injuries can have a greater influence on total cost than might be expected. According to OSHA, the less serious an injury, the higher the percentage of indirect costs to direct costs, with indirect costs ranging between 1.1 and 4.5 times the direct costs. An employer’s premium does not account for an incident itself. The impact on the experience modification factor, overall production loss to the organization, low morale, cost of finding a replacement employee, training, and paid time off, among other expenses are all contributors to the total cost.

Employers can reduce their total cost of risk by working together with a workers compensation provider with the knowledge and expertise of total cost dynamics. At Key Risk, we are focused on providing accident prevention, optimal claim outcomes, transitional duty programs, managed care and medical bill review programs to aggressively reduce the total cost of risk for employers. We recommend employers educate themselves on what contributes to injury costs below the surface. Once educated, employers can take active steps to ensure they create a workplace culture focused on prevention.

For every $1 spent on wellness, safety, and hiring practices, employers SAVE up to...

$3WELLNESS

$6SAFETY

Sources: Occupational Safety and Health Administration, The Risk Management Society, The National Council on Compensation Insurance, The U.S. Small Business Administration, and The International Foundation of Employee Benefits Plans

Estimated number of serious employee injuries and illnesses per year

4.1MILLION

Total societal cost of workplacefatalities each year

$40BILLION

Estimated annual total costof all workplace accidents

$170BILLION

Increase employers paid to covertotal injury cost in 2012

5%from 2011

Increase in workers compensationclaims on behalf of injured workers

3%in 2010

Investments in workplace safetyprograms reduce injury costs

UP TO

40%

Will your clients’ workers compensation programleave them under water?Total cost of risk is comprised of administrative costs, business losses, premiums and risk management expenses. Premiums do not indicate the true cost of an injury to an organization; as less serious injuries can have a greater influence on total cost than might be expected. According to OSHA, the less serious an injury, the higher the percentage of indirect costs to direct costs, with indirect costs ranging between 1.1 and 4.5 times the direct costs. An employer’s premium does not account for an incident itself. The impact on the experience modification factor, overall production loss to the organization, low morale, cost of finding a replacement employee, training, and paid time off, among other expenses are all contributors to the total cost.

Employers can reduce their total cost of risk by working together with a workers compensation provider with the knowledge and expertise of total cost dynamics. At Key Risk, we are focused on providing accident prevention, optimal claim outcomes, transitional duty programs, managed care and medical bill review programs to aggressively reduce the total cost of risk for employers. We recommend employers educate themselves on what contributes to injury costs below the surface. Once educated, employers can take active steps to ensure they create a workplace culture focused on prevention.

For every $1 spent on wellness, safety, and hiring practices, employers SAVE up to...

$3WELLNESS

$6SAFETY

Sources: Occupational Safety and Health Administration, The Risk Management Society, The National Council on Compensation Insurance, The U.S. Small Business Administration, and The International Foundation of Employee Benefits Plans

Estimated number of serious employee injuries and illnesses per year

4.1MILLION

Total societal cost of workplacefatalities each year

$40BILLION

Estimated annual total costof all workplace accidents

$170BILLION

Increase employers paid to covertotal injury cost in 2012

5%from 2011

Increase in workers compensationclaims on behalf of injured workers

3%in 2010

Investments in workplace safetyprograms reduce injury costs

UP TO

40%

Will your clients’ workers compensation programleave them under water?Total cost of risk is comprised of administrative costs, business losses, premiums and risk management expenses. Premiums do not indicate the true cost of an injury to an organization; as less serious injuries can have a greater influence on total cost than might be expected. According to OSHA, the less serious an injury, the higher the percentage of indirect costs to direct costs, with indirect costs ranging between 1.1 and 4.5 times the direct costs. An employer’s premium does not account for an incident itself. The impact on the experience modification factor, overall production loss to the organization, low morale, cost of finding a replacement employee, training, and paid time off, among other expenses are all contributors to the total cost.

Employers can reduce their total cost of risk by working together with a workers compensation provider with the knowledge and expertise of total cost dynamics. At Key Risk, we are focused on providing accident prevention, optimal claim outcomes, transitional duty programs, managed care and medical bill review programs to aggressively reduce the total cost of risk for employers. We recommend employers educate themselves on what contributes to injury costs below the surface. Once educated, employers can take active steps to ensure they create a workplace culture focused on prevention.

For every $1 spent on wellness, safety, and hiring practices, employers SAVE up to...

$3WELLNESS

$6SAFETY

Sources: Occupational Safety and Health Administration, The Risk Management Society, The National Council on Compensation Insurance, and The International Foundation of Employee Benefits Plans

Estimated number of serious employee injuries and illnesses per year

4.1MILLION

Total societal cost of workplacefatalities each year

$62BILLION

Estimated annual total costof all workplace accidents

$192BILLION

Increase employers paid to covertotal injury cost in 2013

6%from 2012

Increase in workers compensationclaims on behalf of injured workers

3%in 2010

Investments in workplace safetyprograms reduce injury costs

UP TO

40%

$6SAFETY

$16HIRING PRACTICES

Sources: Occupational Safety and Health Administration, The Risk Management Society, The National Council on Compensation Insurance, The U.S. Small Business Administration, and The International Foundation of Employee Benefits Plans

$6SAFETY

$16HIRING PRACTICES

Sources: Occupational Safety and Health Administration, The Risk Management Society, The National Council on Compensation Insurance, The U.S. Small Business Administration, and The International Foundation of Employee Benefits Plans

Building &Equipment Damage

Emergency Supplies

AccidentInvestigation Costs

OSHA Fines

Paid Time Off

Recruiting

New Employee Training

Production Loss

Impact on E-Mod

INDIRECT COSTS

DIRECT COSTS

Premium

Medical Costs

Lost Time Wages

Claims AdministrationExpenses

For more information on how to calculate total cost of risk, check out the OSHA Safety Pays Program cost estimator at www.OSHA.gov.

$6SAFETY

Sources: Occupational Safety and Health Administration, The Risk Management Society, The National Council on Compensation Insurance, and The International Foundation of Employee Benefits Plans

Scorecard Value DifferenceWhat does this mean to your organization?

Key

Ris

k

Com

pany

A

Com

pany

B

Focus 100% Workers Compensation Industry expertise & specializationwith no distractions.

Local Presence

Regional offices & territory-focused staff located throughout

the core states in which we operate:

PA, MD, VA, NC, SC, TN, AL, & GA

Dedicated local teams with jurisdictional expertise are focused on risk management

services and efficient claims handling.

Availability24/7 Claim Reporting:

Online, Fax, Email, or 24-Hour Client Call Center

Multiple options allow you to report claims quickly and easily.

Risk ManagementServices A Dedicated Risk Management

Professional Assigned to everyone

Reduced workers compensation exposures, established action plans and effective

transitional duty programs result in a safer workplace, fewer injuries and the overall

improvement in your organization’sexperience modification factor.

Risk Management InformationSystem

Online risk management system allows you to set automatic alerts, report claims, and generate reports specific to your needs.

Claims Management Service model based on 100 Open

Indemnity Claims per Claim Professional

Dedicated Claim ProfessionalsWith lower than industry average

caseloads, local claim professionals focuson exceeding expectations and helping

injured workers return to work.Three Point Contact Program

Managed Care

Nurse Case ManagementProprietary Network of Medical

Providers — CompCareLXOutcome-Based Medical

Bill ReviewPharmacy Management

By integrating expertise and technology, Key Risk maximizes the value of each and every

claim dollar spent.

Results — Over 49% savings on allmedical bills paid in 2015.

FlexibilityManaging your workers compensation

program is easy and convenient. Pay-as-you-go with PremiumSync®, or select

from traditional payment methods

Financial Strength

Rated A+ (Superior)Financial Size Category XV A.M. Best Company, Inc.

Proven financial strength gives you assurance that your claim obligations

will be paid promptly.

StrengthW. R. Berkley Corporation is among

the largest commercial lines writersin the United States.

Risk Management

TMEssentials

®

PremiumSync

W O R K E R S C O M P E N S A T I O N

a W. R. Berkley Company

C l a ims Managemen t

TMEssentials

W O R K I N G T O G E T H E R . D E L I V E R I N G B E T T E R O U T C O M E S .

Selecting Value... Scorecard for measuring value across workers compensation programsEmployers can’t manage or improve what they don’t measure. Having the right information is key to identifying and taking advantage of unrealized opportunities within a workers compensation program. Below is a scorecard to help you chart how Key Risk compares to other workers compensation providers. This tool focuses on our overall program benefits as well as highlights our service areas of Risk Management Services, Claims Management, and Managed Care.