A Checklist for Controlling Workers’ Comp Costs

From medical costs to legal expenses to increased annual workers’ comp premiums, workplace injuries have a significant financial impact on companies across all industries. 

To help, we’ve compiled this checklist of some of the main areas employers can consider when working to lower workers’ comp costs. Overall, a strong focus on preventing injuries from happening and responding properly when they do are top considerations.

🔲 Workplace Safety Program

The best way to save on workers’ comp costs is to prevent injuries from happening in the first place. Establishing a workplace safety program should be the first step employers take to reduce the likelihood of injuries and control losses. 

A workplace safety program ought to be documented and communicated with employees so they are aware of standard operating procedures for negotiating workplace risks. It might include:

  • the use of personal protective equipment (PPE) and safety technology that helps keep workers safe and on the job
  • a routine workplace safety audit of the environment to identify and correct potential hazards
  • an ergonomic evaluation to prevent common and costly musculoskeletal disorders (MSDs) 
  • workforce safety training to encourage safe work practices among employees

🔲 Workforce Safety Training

Training on safety topics and common workplace hazards reduces the likelihood of workers being injured at work, especially newer workers. While safety training may seem like an extra upfront cost or a loss in productivity, it pays off in the long run with fewer workplace incidents, reduced liability for employers and improved operational efficiency. This makes it an important tool in controlling workers’ comp costs.

Insurance carriers often offer policyholders free resources, ranging from information on how to create worker training programs to various virtual and in-person worker training materials and programs. And innovative safety tech, like wearables, can provide continuous coaching on proper body mechanics that leads to lasting behavior change, as well as actionable data showing which workers would benefit most from additional safety training.

🔲 Immediate Injury Reporting Protocol 

When an injury does occur in the workplace, one of the most cost-saving measures an employer can leverage is a prompt reporting policy. The more time that passes after an injury, the more likely it is to be more expensive for employers. 

Lag time can lead to:

  • an injury getting worse and requiring higher medical costs
  • greater lost productivity due to delayed medical care
  • an increased chance of litigation and higher legal expenses 
  • fines for failure to report injuries in a timely manner
  • costly claims that have a negative impact on workers’ comp premiums

Immediate reporting is the best practice for accidents and injuries. This practice applies to employees reporting an injury as soon as possible and to employers immediately communicating an injury to their workers’ comp insurance provider.

🔲 Incident Response and Investigation Policies

Another key way to control costs around workplace injuries is to have a clear plan in place for what happens when an injury occurs. A proper response and an investigation not only ensure claims are handled as effectively as possible (incurring less medical and legal expenses), but also can help protect employees from repeated future injuries. 

The plan should cover immediate response protocols for providing proper medical care and incident investigation policies that determine how the injury happened. A thorough investigation may include:

  • photos of the injury site
  • review of security footage
  • injured worker, co-worker and witness interviews

Beyond aiding in efficient claims management and preventing future accidents, proper incident response and investigation can protect employers in the event that an employee chooses to litigate a claim, or in the rare occasion of fraud.

🔲 Claim History and Injury Trend Evaluation

Most workplace injuries, from strains and sprains to slips and falls, are entirely preventable. Employers can save money and reduce workers’ comp premiums by identifying injury patterns and taking corrective action. A regular claims review or analysis of an employer’s claims history can reveal these patterns, showing which claims are costing the company the most. Insurance providers often offer claims review services at no cost to insureds.

Furthermore, trend data collected from wearable safety tech deployed across a workforce can reveal spikes in injuries among a specific job function, or during a particular time of day or day of the week. This information can help employers focus on

Again, preventing injuries from happening is the best way to control workers’ comp costs.

🔲 Return-to-Work Program

A return-to-work program can help save money when an injury occurs. Getting an employee back on the job after an incident assists in resolving a claim quickly, which is important as open claims costs are passed directly to the employer.

A return-to-work program includes transitional duty assignments and scheduling modifications to help employees ease back into work as appropriate. This can help:

  • decrease medical costs
  • reduce the likelihood of litigation and legal expenses
  • lower costs of temporary or replacement workers
  • reduce workers’ comp insurance costs

Insurers often assist policyholders in determining when a return-to-work program is appropriate as well as in implementing the program. These programs boost both productivity and morale while helping to manage workers’ comp expenses.

🔲 Dividend Plans

Another notable way to save on workers’ comp costs is for policyholders to select a policy with the potential to earn money back dividends. Workers’ comp policies that offer a dividend plan reward policyholders for keeping their workers safe. When the policy expires, the insurer evaluates the policy’s loss ratio. If it’s below an established threshold for the policy period, the employer can recover a sizable portion of their premium. Basically, the fewer claims a company has incurred, the greater the money-back dividend it can earn.

By implementing safety standards, like workplace safety programs, wearable safety tech, and safety training, insureds reduce claims, improve loss ratios and maximize potential dividend payout.


Kinetic Insurance policies include the Kinetic Reflex wearable safety platform, proven to reduce workplace injuries and lost work days, at no charge. In partnership with Nationwide, we offer free resources and services to help policyholders maintain a safe and productive workforce and save money. 

Learn more about cost-controlling support services available to Kinetic policyholders. Reach out at info@kinetic-insurance.com.

3 Steps to Prevent Workplace Slips and Falls

In 2020, 805 workers died from falls and 211,640 suffered from injuries that required days off of work. These startling statistics from the National Safety Council clearly exhibit that slips, trips and falls are serious workplace hazards.

A Common and Costly Workplace Incident

Across all industries, slips, trips and falls were the third leading cause of workplace injuries resulting in days away from work in 2020. And injured workers missed an average of 16 days of work after a workplace fall.

Source: National Safety Council

Slips, trips and falls not only put employee safety at risk, but they also have a financial impact on employers, ranging from a general inconvenience to a serious liability. 

  • The 2022 Liberty Mutual Workplace Safety Index reports that slips, trips and falls accounted for over 30 percent of the $58 billion total cost burden to businesses for workplace injuries and illnesses 
  • The National Council on Compensation Insurance revealed slip and fall injuries were the third most costly lost-time workers’ compensation claim, averaging $48,575 per claim filed in 2019 and 2020.

In addition to the cost of the injury, slip and fall incidents can result in lost productivity when injured workers are off the clock, and higher insurance and operations costs for employers.

Workplace Falls are 100% Preventable

While workers in construction, transportation, warehousing and agriculture are at particularly high risk of workplace falls, they can happen anywhere – even at desk jobs. Wet floors, uneven surfaces and wobbly ladders are common causes of workplace slips and falls, which can happen from working at heights as well as on the same level. 

Injuries can occur when an employee:

  • catches him/herself from falling due to a slip or trip
  • falls onto or against an object on the same level
  • falls from a collapsing structure, through surfaces, and from ladders, roofs, scaffolding, or other structures
  • jumps to a lower level

Despite the wide-ranging causes, slips and falls are one of the most preventable accidents to occur in the workplace. To protect employees and prevent losses, employers should create a safety program that focuses on slip and fall prevention and addresses what to do if someone gets injured.

Slip and Fall Injury Prevention

While slips, trips and falls make up the majority of general industry accidents, businesses can manage this risk and protect their employees by following these steps.

STEP 1: Determining what commonly causes falls in the workplace is the first step in a fall prevention program. Performing a daily safety survey can help employers to identify common causes of slips and falls. Some typical hazards to look for include:

  • Unsafe conditions: wet or greasy floors, loose or torn flooring or carpets, and uneven outdoor surfaces like sidewalks and parking lots
  • Risky employee behaviors: rushing, not paying attention/being distracted, using a cell phone, and carrying materials that obstruct vision
  • Damaged or improper equipment: damaged ladder steps and broken/missing handrails
  • Hazardous environments: inclement weather with ice, rain or snow, poor lighting, and clutter

STEP 2: The next step is to take immediate corrective action and implement protection measures to eliminate hazards and safeguard against falls. This might include:

  • workplace maintenance,
  • equipment repairs or replacement, 
  • and safety training and signage.

Employers should develop and implement a written safety program that provides employees with regular training in slip and fall safety. Training should include procedures for how employees report unsafe conditions and respond to injuries or hazards. Offering incentives for safe behavior can help encourage program participation and compliance.

STEP 3: Finally, it’s important for employers to document any safety measures and protection efforts taken, including daily safety inspection and maintenance work records. When slip and fall incidents do occur, they should be investigated to determine the cause and all responses should be documented. This helps protect employers in the event of a claim while also improving workplace safety and growing the safety culture.

By taking these three steps to prevent avoidable workplace slips, trips and falls, employers can protect their employees, preserve company productivity and avoid the costly financial impact of slip and fall workers’ compensation claims.

3 Ways Wearables Help Housekeeper Employers with Injury Prevention Standards

For employers in the hotel industry, meeting OSHA requirements like the Cal/OSHA standard requires ongoing attention and work. To ensure continuous compliance and accurate, on-time reporting, employers need to:

  • develop controls to prevent or minimize exposures to work conditions that cause repetitive motion injuries, 
  • conduct worksite evaluations, 
  • implement worker training programs that address the causes and controls of repetitive motion injuries

A wearable technology program can assist hotel housekeeper employers in meeting OSHA requirements in multiple ways. Data insights help identify potential risks to a workforce and support timely corrective measures. Furthermore, a wearable program can provide continuous coaching on proper posture for common high-risk movements among housekeepers, such as improper lifting while making a bed, or awkward bending and twisting while cleaning a bathroom.

Identify Potential Risks

In worksite hazard evaluations, employers are required to identify unsafe conditions and work practices with respect to potential causes of musculoskeletal injuries to housekeepers.

A wearable platform helps employers recognize high-risk movements among workers that lead to musculoskeletal injuries, such as repetitive motion injuries. Data from wearable devices uncover who is performing excessive high-risk postures, what those movements are, and when, where and how often they are occurring. It can also reveal the potential causes that are putting employees at risk.

Take Corrective Measures

As part of a written Musculoskeletal Injury Prevention Program, employers must include methods or procedures for correcting identified hazards in a timely manner.

Wearables can automatically recognize risky postures and alert users. These real-time alerts help employees correct unsafe movements and create new habits that drive sustained behavior change. Over time, workers reduce their high-risk postures, which directly leads to fewer injuries. An effective wearable platform makes it easy for employers to track and show reduced high-risk postures across an entire workforce. 

Data can also be sorted by job type, day of the week, type of high-risk posture, and more, allowing employers to improve workplace ergonomics through targeted training and coaching, as well as through workstation and work process redesigns.

Provide Continuous Coaching

The Cal/OSHA standard requires employers to provide training elements covering body mechanics and safe practices, including the identification of workplace hazards.

The real-time alerts provided by a wearable program can serve as a continuous coaching system for workers. They remind employees when a posture is performed that puts them at risk of injury, teaching them to identify potential risks and to use proper body mechanics. This continuous coaching method is significantly more effective than one-time training efforts.

Proactive Risk Prevention is the Future

For reducing the risk of musculoskeletal injuries among housekeeping employees, and among myriad other labor-intensive essential roles, the shift to a preventative approach to risk is the way of the future. Kinetic Insurance is pioneering this approach with its tech-driven, proactive workers’ compensation offering.

Our workers’ comp policies include free wearable tech that can help employers comply with multiple components of the Cal/OSHA standard while reducing workplace injuries and lowering premium costs.

Best Practices for Workers’ Compensation Claims Reporting

Benjamin Franklin famously advised, “An ounce of prevention is worth a pound of cure.” Preventing workplace injuries is clearly the most effective way to manage workers’ compensation claims. However, while many work-related injuries are avoidable, when they occur, the way employers handle them is critical. 

These best practices for claims reporting can help injured employees receive the best care and support employers in controlling costs.

> Report all workplace injuries immediately.

Timely reporting tops the list of tips for managing workers’ comp claims. Following early injury reporting practices, even if an injury does not require medical treatment, leads to a smoother claims process. 

When employers report a claim right away, evidence is better preserved and the claim representative has more time to investigate the injury. It also ensures the employer’s compliance with state requirements, helping them avoid significant fines and penalties. 

Prompt reporting benefits injured workers too, allowing them to receive appropriate medical care as soon as possible and return to work safely with minimal delay.

> Investigate right away (and keep notes).

All reported injuries require investigation, ideally immediately. Employers should document as much information about the injury as possible and provide it to the claim representative. These details will help to verify reports from the injured worker. 

Investigation information to provide includes:

  • details of the injury, including the employee’s name and type of injury
  • when (date and time) and where the injury occurred
  • how the injury occurred – what the employee was doing when it happened
  • any information received from the injured employee, such as a written statement, medical treatment provider, contact information and wage information
  • documented witness statements and interviews with the injured employee and their supervisor
  • any relevant photos 
  • any accident scene information or evidence

> Communicate frequently.

Open communication among the company, the employee and the claim representative helps to achieve a better workers’ compensation outcome. 

Employers should educate employees on workers’ comp processes, including how to report an injury and who to go to with questions. Knowing when they can expect benefits and how to return to work can ease common employee concerns. And regular communication with injured workers ensures they are cared for and supported through their return.

Employers should also be in touch with an injured worker’s care provider about their condition status and completion of care. Additionally, they should communicate with the claim representative frequently to make sure benefit payments are on time and correct and to reach a resolution of any issues.

> Train supervisors.

A supervisor should be the first person a worker informs of an injury and plays an important role throughout the workers’ comp process. As such, they need to understand how the process works. Training should include:

  • what impact and costs are associated with workers’ compensation 
  • how to help prevent worker injuries
  • what to do when a worker is injured, including how to report incidents 
  • how to navigate the workers’ comp process, from directing employees to the appropriate individuals to determining the validity of a claim
  • how to manage work restrictions and return-to-work processes for injured employees

Well-trained supervisors, and strong relationships between employees and direct supervisors, can help ensure efficient claims reporting and management.

> Focus on prevention.

Preventing injuries before they happen remains the best way to manage workers’ comp claims. Employers can best accomplish this with a comprehensive safety program that provides regular training for employees and supervisors and by creating a positive safety culture.

Wearables can be a beneficial element in prevention-focused safety and risk management programs. The devices can reduce workplace strain and sprain injury frequency by 55% through continuous coaching methods that improve how workers move while doing their jobs.

Wearable tech also provides a wealth of data on workplace risk that employers can use to reduce the chances of work-related injuries and claims. The data provides insight into trends and patterns that can uncover areas of high risk or weaknesses in a company’s safety approach. It can inform employers of potential improvements or enhanced training to help prevent future injuries.

Provide Clients with Superior Claims Services

Best-in-class claims reporting and management services bring real value to insureds. And they can help position brokers as true partners in risk management, allowing them to win and retain business easily. 

In partnership with Nationwide, Kinetic’s proactive workers’ comp policies, which include free wearable technology, offer superior claims services for a personalized customer experience, fast and fair resolution of covered losses and robust digital capabilities.

Services include:

  • easy claim reporting online, with a representative over the phone, or by fax
  • experienced claims adjusters
  • a 24/7 Nurse Triage program that ensures prompt medical treatment
  • a prescription First Fill program that allows prescription processing before workers’ comp is established
  • a workers’ compensation virtual toolkit with useful state-specific resources
  • dedicated claims account managers
  • bill and claim reviews
  • return-to-work programs

Conclusion

Brokers can engage current customers and attract new ones by serving as risk management partners and helping policyholders follow these best practices for claims reporting. In addition, providing policyholders with top-of-the-line claims services, like nurse triage and user-friendly claims reporting, can help them reduce worker injury rates and control claims costs.

Don’t Wait: 5 Key Reasons to Report Workplace Injury Promptly

Time is critical when reporting a work-related injury, especially among frontline workers who serve as the backbone of a company. When these essential employees are sidelined, it can have a direct impact on an organization’s productivity. Lag time also leads to increased direct and indirect workers’ compensation costs.

Early injury reporting practices and policies safeguard profits, allow employees to return to work faster, and enhance a culture of safety. 

Here are five key reasons to report work-related injuries to insurers promptly. 

1 – Lowered Claim Costs

Workers’ compensation costs for musculoskeletal disorders (MSDs) – the most common workplace injury – are high. Employers spend as much as $20 billion a year on direct costs for MSD-related workers’ comp. And if reporting is delayed, costs can continue to climb.

A study by the National Council on Compensation Insurance showed delayed injury reporting can increase comp claim costs by up to 51%.

During lag time, a claims team loses important time in reaching out to help an injured worker get prompt and appropriate medical care. This can lead to an injury getting worse and medical costs related to the claim increasing. For example, an untreated sprain may require surgery instead of physical therapy. 

Ultimately, reporting delays can result in not only increased medical expenses, but also higher legal expenses and greater lost productivity (see #s 4 and 2!).

2 – Faster Return to Work

Injured employees may miss scheduled work shifts for weeks, months, or in some cases, years. In 2020, the median number of days away from work for all work-related injuries was 12, and for MSDs it was 14. And MSDs accounted for 32% of all injuries resulting in 31 or more days away from work.

With labor shortages across industries already impacting many companies’ productivity levels, lost work time is particularly burdensome and adds to the indirect costs of workplace injuries. Immediate reporting ensures prompt medical care, which can decrease employees’ time off work and minimize lost productivity.

3 – Improved Investigations & Fraud Detection

Good investigations rely on timeliness. When a work-related injury is reported right after it occurs, it allows for a more thorough look into the facts of the incident. Taking early steps to report and investigate an injury ensures that evidence can be gathered and documented immediately, where with a delay it may be overlooked or forgotten. Additionally, timely investigations allow for taking witness statements while an incident is still top of mind. 

Furthermore, while most workers’ comp claims are legitimate, studies show that at least 1-2% are fraudulent. Delayed claims reporting aids fraud schemes by allowing deceivers to falsify or exaggerate details in the absence of timely evidence.

4 – Lowered Litigation Costs

Delayed reporting can increase the potential for litigation. Employees may seek attorney assistance with their claim if it hasn’t been reported in a timely manner, which results in increased employer costs. Or lag time can lead to employee dissatisfaction with medical care and benefits, and in turn, a litigated claim.

According to National Council on Compensation Insurance data, attorneys were involved in 12.8% of claims made the day of an accident compared to 31.7% involvement for claims made four weeks or more later.

Reporting claims immediately allows injured workers to feel confident in a company’s commitment to their health and to quickly come to understand the workers’ comp process, including details around medical care and wage replacement. This helps to ease concerns and avoid confusion that could lead to hiring an attorney.

5 – Ensured State Compliance

Prompt reporting of workplace injury helps companies comply with reporting requirements and laws, which are regulated by the states. When a worker is injured on the job, employers have a limited amount of time to file a workers’ compensation claim. Delayed reporting could result in a claim being denied or late reporting fines and penalties. 

Workers’ comp claim deadlines vary from state to state and fines can range from $100 to $5,000.

Early Reporting Pays Off

For all the reasons outlined above, a best practice is to report work-related injuries as soon as possible. In fact, experts say reporting an injury within the first 24 to 48 hours after it occurs is the optimal way to keep workers comp costs down.

As soon as employers become aware of an injury they can begin to file a claim, even if they don’t have all the information to complete it. Submitting the first report of injury as soon as possible is crucial to getting the claims process started no matter how minor the injury is.

This prompt reporting will help companies to keep claims costs lower, minimize return-to-work delays, allow for smoother investigations, reduce the potential for costly litigation and avoid late reporting fines and fees. In addition, it lets employees know they are valued by providing them with immediate medical care and support.

Safety First in the Towing Industry

The busiest season of the year is here for tow truck drivers! With over 70 percent of the nation’s roads located in snowy regions, winter weather leads to an increased need for towing as motorists deal with winter storms, snow and ice.

Dangerous road conditions and heightened demand only add to the potential hazards these essential first responders face on a daily basis. In addition to the risks that come with navigating roads and working on the sides of busy highways, the physical aspect of the job is taxing too. Operating heavy machinery to load and unload vehicles, driving for long hours, and getting in and out of the cab can lead to musculoskeletal and repetitive stress injuries, especially strains and sprains.

According to a study by the National Institute for Occupational Safety and Health, based on data from 2011 to 2016:

  • The annual nonfatal injury rate among motor vehicle towing workers per 10,000 full-time employees was more than double the rate for all U.S. private industries (204 vs 98).
  • 6,400 nonfatal injuries and illnesses resulted in missed workdays.
  • 32% of all nonfatal injuries were due to overexertion and bodily reaction from bending, kneeling and crawling. 
  • Most injuries involved sprains, strains and tears.

How Wearable Tech Can Improve Tow Truck Worker Safety

In an industry prone to worker accidents and injury, putting tow truck driver safety first pays for everyone, from the drivers themselves to the towing companies that employ them. Preventing strain and sprain injuries before they happen helps all parties avoid lost work time and productivity, which is critical this time of year. Plus, it helps employers save on workers’ compensation claims costs and insurance premiums.

Wearable safety tech can help tow truck workers move more safely on the job, significantly reducing their risk of injury. When outfitted with a wearable device that alerts them of high-risk movements – such as improper bending, twisting and overreaching – workers increase their awareness of these risky behaviors. This continuous coaching helps them to create safer habits and perform less high-risk movements, which leads to fewer work-related injuries. 

Wearable tech can reduce injury frequency by 50-60% and lost work days by 72%.

Perr&Knight actuarial analysis, 2021

By collecting high-risk posture data for an entire workforce, wearables also help employers to be informed about workers and timeframes that are most at risk. These insights can lead to focused efforts, such as additional safety training, that further reduce risk and help control loss.

For example, we introduced a new jump detection feature set for the Kinetic Reflex wearable platform last spring, providing insights into the frequency and timing of high-risk jumps. With this feature, employers of tow truck drivers can discover high-risk employees, and provide specific coaching and support around how to properly exit a truck to avoid potentially dangerous jumps.

Reduced worker injury rates reduce a policyholder’s overall workers’ comp burden. In environments where high strain and sprain injury rates are present, like in the towing industry, wearables can reduce claims costs by 50%. As fewer claims are reported, E-mod scores improve and premium rates go down.

Innovative workers’ compensation policies that include wearable safety tech at no cost are making this cutting-edge tech increasingly accessible to companies of all sizes, allowing more employers to take a proactive approach to workplace safety and workers’ comp. The benefits include a safer, more productive workforce and lower costs for employers.


Kinetic Insurance, in partnership with Nationwide, is pioneering a technology-driven approach to worker safety that benefits insurance carriers, brokers, and policyholders. Our workers’ compensation offerings lower costs by equipping workers with wearable technology that is proven to reduce injuries by as much as 60% and lost work days by 72%.

Want to learn more? Reach out to us at info@kinetic-insurance.com.

Tech-Led Workers’ Comp Made Easy, Part 2: Tech Deployment

In Part 1 of Tech-Led Workers’ Comp Made Easy, you learned how the broker education process, offered by our Broker Success Team, can help you understand Kinetic’s wearable technology in order to leverage it as a selling point with clients. And that brokers who’ve completed this education have about 90% of their customers adopt Kinetic tech to reduce injuries. 

In this installment, we’re looking at how the Broker Success Team supports those clients who adopt the tech and guides them through the tech deployment process. Our experts become an extension of your team, teaching your clients how to use the wearables and taking care of them every step of the way. We strive to make it as easy as possible – for both you and your customers!

Launching the Tech Program

Injury-preventing technology, included for free with a workers’ comp policy, is a game changer for most companies. It helps to prevent workplace injuries before they happen, which means a more productive workforce and an opportunity to save on workers’ comp claims costs.

Kinetic’s wearable tech is proven to effectively:

  • Reduce strain & sprain injury frequency by 50-60%
  • Reduce lost work days by 72%
  • Lower claims cost by 50% in environments with high strain & sprain injury rates

With hundreds of successful tech deployments under our belts, we’re well-equipped to get your clients’ wearable safety programs up and running. Our Broker Success Team connects directly with your clients to set up their tech, train their workers and provide ongoing support.  

Below is a brief case study that demonstrates the tech deployment process and the positive early results a wearable program can have.

A Successful Remote Deployment

A San Francisco Bay Area hospitality laundry service introduced the Kinetic wearable program to about a third of its employees in roles including delivery, maintenance, wash and production, at two locations, in the spring of 2022. 

The 3-step deployment process was fully-remote and included: 

Step 1: Onboarding (30 Minutes)

The company’s management met with a Kinetic onboarding manager to learn about the Kinetic technology program and determine how many devices would be needed to effectively reduce the likelihood of injury for their at-risk workers. The policyholders then signed a lease agreement that officially endorses them for the Kinetic dividend program.

Step 2: Training (45 Minutes)

The management team attended a brief virtual training session where they learned how to set up and properly use their Kinetic devices. At the conclusion of the training call, the policyholders were fully prepared to begin reducing workplace injury risk with Kinetic technology.

Step 3: Ongoing Support (As Needed)

The laundry service is taking advantage of optional touchpoints to review program results, discuss claims trends and learn about additional complimentary services offered by Nationwide that can further reduce their workplace injury risk. Like all Kinetic policyholders, they will receive ongoing assistance from onboarding managers who monitor the impact of the tech on worker safety throughout the duration of their policy.

Keys to a Successful Tech Deployment:

  • A dedicated operations manager is chosen to lead the program and educate employees and management about the importance of consistently wearing Kinetic devices. 
  • A majority of the policyholder’s at-risk workforce is utilizing Kinetic wearable devices.
  • Management leverages the Kinetic dashboard and automated email reports to understand, measure, and maximize the impact of the Kinetic technology program over the length of their policy.

Positive Early Results

With the Kinetic wearable platform, the policyholder experienced a 26% reduction in high-risk postures in the initial 6 weeks of deployment, across both sites. This reduction in high-risk postures reduces the risk of injury in their workforce.

Kinetic Reflex led to a 26% decrease in high risk postures

“Kinetic has helped us improve safety at our company. You can see it when you look around. Our people are wearing their devices and it’s raising their safety awareness. Now we are seeing the outcome in our lower claims frequency.”

Safety Manager

Early positive results led the laundry service to expand the wearable tech program in the fall of 2022 to cover a majority of their production team and 100% of their drivers. They are currently considering further expansion in the year to come.

Ready to connect your customer with tech deployment support? Reach out to the Broker Success Team at info@kinetic-insurance.com to get the process started.


Meet Lucas Bradford, Broker Success Manager

Lucas Bradford, Broker Success Manager at Kinetic Insurance

Lucas joined the Broker Success Team at Kinetic in November 2021. He leads the tech deployment process, managing Kinetic Insurance deployments to help policyholders leverage Kinetic’s wearable devices to prevent workplace injuries. Lucas also trains broker partners on our wearable tech offering and supports brokers in point-of-sale meetings.

“Kinetic’s wearable devices are a proven tool for preventing workplace injuries and we’ve developed an extremely simple process for deploying them to at-risk workers. 

When brokers and policyholders are properly educated, we’ve consistently seen meaningful reductions in the frequency and severity of injuries due to the use of our technology.

That means employees are safer and workers’ comp insurance becomes more affordable when Kinetic wearables are used!”

Reach out to Lucas at lucas@kinetic-insurance.com.

Tech-Led Workers’ Comp Made Easy, Part 1: Broker Education

Workers’ compensation insurance that includes injury-preventing wearable tech can help you stand out in a crowded marketplace. This proactive approach brings real value to your clients and positions you as a true partner in risk management. 

Pitching this innovative, prevention-focused solution, however, can be daunting. At Kinetic, we have a team standing by for just this reason! 

Meet the Broker Success Team, a dedicated group of experts ready to help our broker partners quickly and easily understand and present Kinetic’s state-of-the-art wearable safety program as a unique selling point to help win business.

Get Educated

The first step to success is getting familiar with Kinetic technology. What exactly is it? What specific benefits does it provide? And how does it work? This is the foundation of our broker education process, designed to help you feel confident in presenting every aspect of our injury-preventing workers’ comp program. 

Although we keep it simple, the process packs a punch!

  • Brokers who’ve gone through the education process have a bind rate of 40%, which is significantly higher than the industry standard and nearly double those that don’t receive the training.
  • Of the brokers that go through the education process, more than 90% of their eligible customers adopt Kinetic technology to reduce injuries versus brokers that don’t receive the training, which have a 40% adoption rate.

We know you’re busy, so we’ve made our broker education process simple. In just two half-hour remote training sessions, you’ll be fully equipped to talk with customers about wearable technology that reduces workplace injuries and lowers workers’ comp claims costs.

Here’s the breakdown: 

Session 1 –  Tech 101 and Dividend Training

In this training call, a Broker Success Manager will walk you through a review of what exactly the offering entails (superior workers’ comp coverage backed by Nationwide and free cutting-edge wearable safety technology!). They’ll empower you to talk about the impact wearables have on reducing workplace injuries and lost work days with verified statistics and real client examples. And they’ll walk you through a dividend breakout so you can easily explain this important feature to customers.

Kinetic Insurance's workers' comp program overview

Next, you’ll get into the details of the hardware with a program overview – this includes how the device works, how users wear it and what it measures; it also covers common concerns such as privacy. You’ll learn dashboard basics, such as what safety data is provided and how to manage the program. Plus, get a quick rundown on the valuable automated weekly reports customers receive via email. 

In this session, you’ll gain access to the full Kinetic training video library, which is packed with short-form video content that covers every piece of the platform. Upon completion of this session, our team will ship you a demo device so you can try it out – this first-hand experience helps significantly in your conversations about the Kinetic technology with clients.

Session 2 – Tech 201 and Device Training

In this session, the Broker Success Manager reviews your experiences with wearing and using the demo device and answers any questions. You’ll learn best practices for wearing the device to help you feel confident in pitching and demonstrating the technology with clients. 

During this second call, you’ll also walk through a high level of the data dashboard to receive an understanding of how a policyholder could utilize it if they choose to. This includes:

  • identifying which employees are at the highest risk of a strain or sprain 
  • spotting patterns in unsafe movement spikes that reveal what times of day, days of the week, etc. pose the highest risk to employees
  • tracking trends over time to see the real impact the device is having on an employee’s safe lifting habits

Conclusion

It’s our goal to arm our broker partners with all the support, resources and materials they need to position the Kinetic technology and dividend program as a business-winning asset. 

Beyond the education process, our team can also serve as a resource in point-of-sale opportunities with clients. When it comes to deploying the technology, we’ve got clients covered too. The Broker Success Team will teach them how to use the tech and take them through the full deployment process. Look for more on these support functions in parts 2 and 3 of Tech-Led Workers’ Comp Made Easy

Ready to get educated? Reach out to the Broker Success Team at info@kinetic-insurance.com to get the process started.


Meet Charlotte O’Regan, Broker Success Manager

Charlotte joined the Broker Success Team at Kinetic in August 2022, after a year of working as a Business Development Representative on our enterprise sales team. She leads the broker education process, training broker partners on how to effectively leverage our wearable tech with insureds. Charlotte also supports brokers in point-of-sale meetings and manages Kinetic Insurance deployments to set policyholders up for success.

Charlotte O'Regan, Broker Success Manager at Kinetic Insurance

“Our broker education process allows brokers to fully understand Kinetic’s technology and how it benefits a policyholder. This empowers them to leverage the technology and dividend program as a selling point with their clients and feel confident in speaking to our technology’s ability to meaningfully impact their client’s strain & sprain injuries and workers’ comp cost.” 

Reach out to Charlotte at charlotte@kinetic-insurance.com.

The State of Insurtech

Haytham Elhawary, Founder and CEO of Kinetic Insurance

Our new Leadership Q&A series talks with the leaders of Kinetic, and sheds light on their specific areas of expertise. This edition features Chief Executive Officer Haytham Elhawary. 

We sat down with Haytham to talk about the state of insurtech as we complete the final quarter of 2022. He dives into how the industry is changing, trends that are gaining traction, how Kinetic fits into the insurtech picture and more. 

Q – How has the insurtech industry changed in the last year?

A – Kinetic Insurance is an MGA, so our business is scrutinized similarly to how a carrier would be looked at versus how a SaaS company might be traditionally analyzed. In this category, the main change we‘ve seen in the last year is a shift from premium growth to loss ratios. 

Kinetic’s technology is focused on injury prevention, so we primarily focus on reducing losses for our policyholders, which has led to industry-leading loss ratios with our customer base. However, we have seen many other similar businesses that were solely focused on distribution and premium growth not fair as well.

Q – How have business models been shaped by previous successes and challenges in the sector?

A- In the past, the new wave of insurtech carriers and MGAs all had a similar model: bypass the traditional broker and agency model by acquiring customers online and aggressively grow premium. This often happened without paying too much attention to expenses, with the mantra being that cheap and abundant cash could fuel growth, and profitability could come later once the insurtech carrier was huge and dominated the market. 

The result was that many companies went public with huge books of premium but very large loss ratios and growing customer acquisition costs. The part of getting to profitability has proven to be a struggle and their large valuations have taken a battering, which has put into question if this model makes sense. 

With cash being no longer easily available, new MGAs and insurtech carriers are returning to using brokers as a sales channel – where customer acquisition costs are more predictable – and are also focusing on profitability at much earlier stages. 

For example, in cyber insurance, insurtechs are offering tools to improve resilience to cyber attacks as part of the policy. Similarly, at Kinetic we’re offering wearable technology that prevents workplace injuries as part of our workers’ compensation offering. 

Q – What big trends are you seeing and how does Kinetic fit into them?

A – Insurtechs that are using proprietary data to gain an advantage in underwriting or using technology to prevent claims, or both, are getting more attention. And the effectiveness of those solutions to really drive down losses is receiving more scrutiny.

For example, our wearable device uses real-time feedback to reduce the number of high-risk movements industrial frontline workers perform on the job that can lead to injury, while also collecting valuable data about risk. So it’s both preventing injuries and claims, and improving our underwriting accuracy and efficiency.

Another area of development is the use of technology to improve every process in the insurance workflow. We are seeing a lot of tech being used to automate aspects of the underwriting process, to enable the inclusion of third-party data sets into the underwriting process, API first policy administration systems, the streamlining of claims management, and even to access capacity from different capital sources than has been the case traditionally. 

We are also seeing embedded insurance, which essentially means including the acquisition of insurance into a trusted process that users are already undertaking. For example, the acquisition of car insurance within the buying process of a new car. Ideally, insurance is getting embedded into a process the customer trusts more, and hence the insurance recommendation would carry more weight.

Q – How are insurtechs balancing growth and profitability goals? 

A – Growth proves the market wants your product, while a focus on loss ratios means your unit economics can yield profitability. So we have to focus on both.

The unit economics of MGAs and insurtech carriers are getting scrutinized earlier. Many carriers are partnering with MGAs and including profit share agreements, which means the revenue the MGA takes of each policy can be enhanced if loss ratios are kept low. This structure lends itself well to companies that have an underwriting advantage and can choose the least risky customers, or for those that can really bend the loss curve through loss reduction technology.

Q – As insurtech evolves, what new benefits can policyholders and insurers expect? 

A – The beauty of the prevention mantra – providing technology that reduces claims – is that everyone in the insurance ecosystem benefits. The policyholder sees their claims go down, and therefore is on the path to lower premiums. The workers who get injured less can be more productive and return home safely to enjoy their personal lives. Insurance carriers and their MGA partners see improved profitability and better unit economics. And brokers get to provide an innovative type of policy to their customers, and can even offer value-added services on top of the data the loss control technology provides, becoming a true partner.

Q – What’s on the horizon for Kinetic in the coming year? 

As we enter into our second year of operations, I expect to see a continued focus on prevention with additional class codes and improvements in our wearable technology. We’ll also be expanding the high-risk motions we can alert on.

Stay tuned for the next edition of our Leadership Q&A series, where we’ll chat with our EVP of Growth Gerritt Graham on the role of brokers as risk consultants. 

What are the Indirect Costs of Workplace Injuries?

Workplace injuries – common among frontline workers – are costly to employers and employees alike. 

It’s estimated that U.S. employers pay over $1 billion per week just for direct workers’ compensation costs. These include upfront costs such as workers’ comp payments, medical expenses and legal services. Employees pay the price too as an injury can lead to lost wages and medical bills not covered by insurance. 

But the expenses don’t end here. The indirect costs of workplace injuries are estimated to be up to 20x that of the direct costs. These include long-term, uninsured expenses that come right from a company’s bottom line, including lost productivity, fines and increased insurance premiums.

For employees, indirect costs may include an impact on the ability to earn as well as physical and mental pain and suffering.

The National Safety Council estimates the total cost of work-related injuries in 2020 was $163.9 billion, including wage and productivity losses, medical expenses, administrative losses and many more indirect expenses.

So what are the hidden, indirect costs of employee injuries?

Here are 3 significant ones for employers to consider: 

1. Work Disruptions and Stoppage

When a worker is injured on the job it can be disruptive to normal workplace procedures, diverting attention and time away from work for multiple employees. Initially, other workers may stop working to assist the injured employee. Supervisors, HR and safety personnel will need to assess the injured worker’s condition as well as the affected area. 

Time may also be spent seeking medical attention, as well as investigating and reporting on what happened, filing a workers’ comp claim and completing necessary documentation. After an injury, attention may need to go to reworking schedules, hiring and training additional help, and implementing any necessary corrective actions in the workplace. The wage costs of this time lost through work disruptions and stoppage are all factored into the expense of an injury.

2. Loss of Productivity and Profitability

Lost workdays are one of the largest contributors to indirect costs related to workplace injuries. When an employee can’t stay on the job and be productive due to an injury, it lessens the entire company’s productivity and profitability. 

Employers may have to accept lower production volumes or quality. Alternatively, they can work to change schedules to cover the absent employee or hire and retrain a temporary replacement. Both are costly as existing workers doing additional responsibilities may require overtime pay, and new workers have lower productivity levels. 

Sometimes, an injured worker may be able to stay on the job but require accommodations for physical limitations, which can also potentially impact productivity and, ultimately, profitability. 

3. Increase in Workers’ Comp Premiums

Workers’ compensation premiums are based on a business’s safety score, or experience modification factor. The cost of the company’s claims over the past three years are compared to similar businesses – fewer claims and lower costs equate to a lower premium, while more claims and higher costs lead to higher premiums. Therefore, each workplace injury impacts future costs the business will incur.

Other indirect costs of workplace injuries to consider

  • Additional Human Resources

This includes costs associated with additional resources such as legal counsel, third-party consultants and independent medical examiners. 

  • OSHA Fines and Enforcement Actions

Some injuries require an OSHA investigation which can lead to expenses related to fines and penalties, legal and consultant fees, and administrative time.

  • Property Losses and Repairs to Equipment 

Costs may be incurred around workplace clean-up and the repair or replacement of damaged equipment and/or property.

  • Decreased Employee Morale 

An injured worker can cause workforce morale to decline, leading to operational inefficiencies and lost productivity that impacts a company’s profitability. 

  • Damage to Reputation

Damage to a company’s image after a workplace injury can cause the business to lose potential and existing customers, investors and strategic partners. 

Avoid and Reduce Costs by Preventing Workplace Injuries

While this list only covers some of the indirect costs a business may incur around workplace injuries, it’s clear the impact on the bottom line and worker well-being extends well beyond injury-related direct costs. It’s also clear that the best way to avoid these expenses is to prevent injuries from happening in the first place.

A solid workplace safety program and a culture of safety are key to reducing and avoiding costly employee injuries. Successful safety programs typically include regular inspections, proper protective equipment, safety training, workplace signage, personnel hours dedicated to safety and employee engagement measures.  

Tech-driven safety solutions, like wearables, have also been proven effective in reducing workplace injury frequency and are being included for free in innovative workers’ compensation programs to enhance loss prevention. Wearable tech is verified to cut injury rates in half, reduce lost work days and save employers on workers’ compensation claims costs. 

Preventing injuries before they occur is the best way to reduce employers’ direct and indirect costs of risk and to keep employees safe and productive on the job.