Those who manage and underwrite risks for manufacturers are facing familiar risks—but with some challenging new twists.
With Workers’ Compensation, the big shift is the medical component of costs exceeding indemnity costs—this after an extended period when companies could materially cut their Workers Comp’ expenses by focusing primarily on returning injured employees to work.
Manufacturing & Workers’ Comp: Four Tips for Controlling Medical Costs
The National Council on Compensation Insurance Inc. (NCCI) reports that medical services now represent 60 percent of Workers’ Comp claim costs. In the past, indemnity costs made up the biggest part of the Workers’ Comp claim.
Winning Plan for Workers’ Comp: The Kennametal Case Study
At Kennametal Inc., the need to focus on the medical component of Workers’ Comp claims is an obvious one for the Latrobe, Pa.-based Fortune 1,000 company, which manufactures metal-product solutions for various industries.
Supply Chain Risks: Responding to the Wake-Up Call
2011 was a wake-up call for manufacturers on the fragility of their supply chains. Catastrophes last year—including massive floods in Thailand that disrupted electronic- and auto-parts manufacturers—caused record totals of $105 billion of insured losses and $380 billion of total economic damages worldwide, according to Munich Reinsurance America.
Policy Fine Points of Supply Chain Coverage
Experts note that supply-chain coverage has some limitations that policyholders often do not consider.