Filed Under:Markets, Workers Compensation

People Determine the Outcome

Despite the Economy, Obesity, an Aging Workforce, and Other Challenges, Manufacturing Facilities Don’t Have to Be Hostage to Increasing Workers’ Comp Costs

Workers’ compensation costs are a critical concern for manufacturers in any economy—and often exacerbated during economic downturn. Workers’ compensation lost time claims increased three percent in 2010, the first increase in such claims in over 20 years. But that doesn’t mean companies are powerless to control the cost of workers’ comp in their manufacturing facilities.

Kennametal, Inc. is a case in point. In its 2008 fiscal year, the Pennsylvania-based company set a two-year goal to slash in half what at the time totaled $2.8 million in annual workers’ comp costs. The company exceeded that goal in less than 18 months, according to Michael P. Murphy, manager of global property and casualty insurance at the $2.4 billion specialty materials manufacturer. Today, the company has reduced workers’ comp claims by 57 percent—and slashed total workers' compensation costs by a whopping 60 percent.

Featured Video

Most Recent Videos

Video Library ››

Top Story

15 tips for driving safely on ice and snow

More than 800 people die each year in the U.S. in vehicle crashes caused by snow, sleet and freezing rain.

Top Story

PIA's national president was born to insure

Robert W. Hansen Jr., a fourth-generation insurance professional, reflects on what drives him to keep selling after more than 30 years in the business.

More Resources

Comments

eNewsletter Sign Up

Workers' Comp Watch eNewsletter

Receive critical business insights into issues related to worker's comp insurance. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.