Donna Motley, Vice President of Claims 

Owning and operating a business is multi-faceted. Having Workers’ Compensation insurance, required by law, is one of those many facets. Hopefully, most employers rarely have to utilize their Workers’ Compensation insurance. BUT, should an employee be injured in the course of employment, you, as the employer need to be prepared.

So how far does the employer’s responsibility reach? The employer is responsible for providing a safe working environment, for training employees in the proper way to perform their job, for proper machine and facility maintenance and for properly handling a work related injury, should one occur. An employee injury is costly in many ways. An injured employee is affected professionally and socially. The employer’s production and work product is affected. A work injury has a financial impact on everyone involved. The employer has a vested interest in making the employee be the best he/she can be, as the employer will reap the rewards.

Don’t ignore the signs. If a Supervisor walks past a work station and notices an employee stretching their back, rubbing their shoulder or playing “windmill” with their arms, that should be the employers first clue that something may not be right. Ignoring “signs” rarely benefits the employer. It is doubtful the situation will resolve itself or just “go away”. On the contrary, what usually happens is the employee will start treating with their primary care physician for the medical condition. Then when it starts to cost the employee a lot of money, or the condition does not resolve, or someone tells them they should file a Workers’ Compensation claim, the employee will bring the situation to the attention of the employer. By this time, treatment has been rendered and we would have to obtain all those medical records; suspicion overshadows the entire claim because it is being reported so late and after the employee has received treatment; and we will not allow treatment until the matter has been investigated. This delay in treatment will in turn delay the employee’s recovery and impact work product and production.

While we are not suggesting that a Supervisor “suggest” to an employee that the employee has a work injury, a simple “Is everything o.k.? I noticed you rubbing your shoulder” can go a long way. At that point the employee may admit that he has an injury that occurred outside of work (make note in the personnel file if that is the case); the employee may alert the employer to a machine set up or situation that could maybe be changed to be more ergonomic; and the employee may come away feeling their employer “cares”.

If the employee advises that something he did at work has caused an injury, the employee should be immediately sent to the clinic. Remember, it is not up to the employee to decide whether or not they “want” to go to the clinic if they have reported a work injury. Whether the employee alleges nothing is wrong, an injury occurred outside of work (i.e. they just slept wrong) or there was a work incident, the Supervisor should follow up with the employee later that day, the next day and the next week, and ask if everything is o.k. or if they are having any other issues. Again, ignoring these situations do not make them go away – instead, they tend to “fester”.

As an employer, you should review all employee injuries, your injury logs and/or loss runs to determine how many and what kind of injuries are occurring and where they occur. Then review to see if there are any changes that could be made so injuries do not continue. Your Loss Control Consultant can be a tremendous help in this regard. Remember, we are a team, all working toward the same goal – a safe and productive work environment! We all benefit!

Audit Reviews

Large audit additional premium due – scary words. Each workers’ compensation policy is written with estimated payrolls for the upcoming year. When the policy expires, an audit is completed to get actual payroll. We then calculate the actual premium from the audit payroll, and subtract member payments during the year. The end result is that we have an audit additional due from our member or premium refund due back to our member. More than 97% of the time, this system works out well. The estimated payroll is close to actual and we end up with a small additional premium that is no burden to our member, or we end up with a small return where MTMIC sends a check back to our member. This high success rate does not mean that the other 3% goes easy. The large additional audit dollars affects the budget and causes stress to our member. It also causes discomfort at MTMIC. We do not like to do things that aggravate our members. Remember, most of our members have been with us for years, and that personal relationship and trust is greatly valued by our member and by the MTMIC staff.

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By Donna Motley, Vice President of Claims

An injury occurs at your facility. The incident is reported through the proper channels – this could be a report to the immediate Supervisor, Plant Manager, Safety Director, or Human Resource Department. If immediate medical attention is required (i.e. blood is involved, a head injury, EMS needs to be called) the next step would be to make sure the injured employee receives the proper medical attention. Then, notify the MTMIC Claims Department of the incident – even if notification is without benefit of the Form 100 (Employer’s Basic Report of Injury). In an emergent situation, you may not know all the facts at that point in time, but should medical personnel contact our department for some sort of verification or authorization, we would at least be aware of the situation and able to take appropriate measures to manage the pending claim. Following said notification, the employer should then start their investigation as to the facts and circumstances surrounding the incident. If a serious injury has occurred, the Claims Department will also notify your MTMIC Loss Control Consultant, who will contact you and aid in an investigation and/or schedule to do an investigation on our behalf.

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A Tribute to a Legacy

The Hancock legacy began with John Hancock Sr. who in 1939 started Crescent Tool and Die and has been with MTMIC for 40 years. That decision 4 decades ago was made by John Hancock Sr. who joined a group of bold shop owners to start and support their own insurance company. Their goal was to improve loss control efforts for their shops and hence the long term availability and pricing. Saving money for members was the focus of the group.

Crescent supplied, repaired, and built tooling and custom machinery for the big three.

Crescent formed a new manufacturing Company in 1963 and thus Hancock Enterprises was born and moved into a larger facility. Crescent Tool and Die was closed in 1984 and Hancock Enterprises took over as the mother company.

John “Corky” Hancock was the second generation owner and CEO of Hancock Enterprises and working with his father until he passed away in 1996 oversaw all operations during his long and successful career. The shop manufacturers and sells metal gutter fittings for the rain carrying industry and sells nationally and internationally.

Hancock has over 50 employees.

Being introduced to his shop, I found that many have been with Corky for over 20 years. His business savvy, hard work and dedication to his employees made all this possible.

Corky was an avid golfer and his office is filled with historical golf treasures – pictures, trophies, letters. Every wall is covered with a picture that draws you close to see who signed it. Mixed in with the golf pictures I learned that Corky also had a political side. Pictures with Presidents, Senators, and Governors – interestingly in my conversation with Corky he not once mentioned these fascinating encounters.

The sad news is that Corky passed away last month after a long battle with cancer. We will miss this kind and effective man. Over the last few years he transferred much of the day-to-day operations to his cousin, Bob Joly. Bob has been at Hancock Enterprises for 35 plus years, so he is well tuned to all the business issues. The company is now in the good hands of Bob and Cindy Joly and Corky’s wife, Catherine Teifer. I expect they will continue the legacy of John “Corky” Hancock.

By Ruth Kiefer, MSc, ARM Loss Control Manager , MSc, ARM, MiOSHA Level 1 Certified 

Effective January 1, 2017: Plastic Injection Mold Industry:Die Change Procedures for Horizontal Injection Mold Machines

s many of you in the plastic injection mold industry know, there will be a MIOSHA rule change in the standard pertaining to injection mold machines that takes effect on January 1, 2017. I have received various responses to this change, for most of you, you are already adhering to the ruling so its no big deal. For other manufacturers, this change has brought up a few questions in recent months, so to help you get ready for the rule change, here are some of the questions that have been posed to our department and to MIOSHA.

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The MTMIC Annual meeting is in about 3 weeks and we are still taking reservations. We are excited about the agenda and hope that you will be able to attend. Please contact Patty Allen at patricia.allen@mtmic.com/blog or (248) 715-0013 to register. We look forward to seeing you!

Please vote on November 8th – AND ALSO in the next week or so, when you receive the MTMIC Board ballot. The MTMIC Board is made up of 10 men and women from Michigan. They represent you and all MTMIC members. The Board members are shop owners, CEOs, CFOs, HR directors, and VPs. They work in shops that are small, medium, and large. They are dedicated to making sure that the company and the management act in the best interest of our member owners. Every September, members vote for three or four board members for the next 3-year terms. In this year’s election, you are voting for four individuals. The incumbents running for re-election are:

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Every once in a while I highlight a manager or department. Recently when reviewing some HR records, some interesting data popped up. This data involves the MTMIC claims department. Let me share what I found.

The MTMIC claims department is made up of five people. The Vice President of Claims is Donna Motley and her distinguished career was highlighted a few months back. What’s impressive is the four career professionals behind Donna on the MTMIC team.

Cindy Boyce is a Senior Claims Adjustor for MTMIC. She has been with MTMIC over 25 years. Her total industry experience is over 30 years. She is an incredibly strong right hand, number 2, and handles most of the litigated cases at MTMIC. Next in the order of tenure, is our Claims Technician, Marci Merath who has been with MTMIC for over 25 years, and has equally has the same industry claims experience. The third claims person is Kimberly Davis. Kimberly has been with MTMIC, 12 years, and has over 20 years’ experience in workers’ compensation claims adjusting. Finally, on the MTMIC claims team is Debbie Sagan. Debbie is the newcomer in the MTMIC claims department with five years of tenure, and over 25 years of workers’ compensation claims experience.

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By Donna Motley, Vice President of Claims

One of the distinct advantages to having your Workers’ Compensation insurance coverage with Manufacturing Technology Mutual Insurance Company is our collective years of experience. As you are aware, we are celebrating our 40th year in this industry. The Claims Department has more than 100 years of experience in adjusting workers’ compensation claims. And just about when we think we have seen everything, and we have seen A LOT, an incident will occur that may surprise even us. Our experience and longevity provide us with certain insights a novice in this business will not have. We also have extensive experience, based on our longevity, in the tooling industry which is not something other insurers can claim. One may think a back injury is simply a “back injury”. But there would be a world of difference in processing the back injury claim of a machinist as opposed to a school teacher.

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By Patty Allen, Sales & Marketing Assistant

The Department of Labor revised the Fair Labor Standards Act (FLSA) and Employee Polygraph Protection ACT (EPPA) effective August 1st.

Those revisions were mailed out to each of our companies to post over your existing Federal Labor Law Poster. New Michigan and Federal Labor Law posters will be reprinted in December to include all 2016 updates.

If for some reason you did not receive your updated postings; please contact Patty Allen @ 248-715-0013 or patricia.allen@mtmic.com/blog to request additional copies.

During the year, I write you each month with owner dividend updates, MTMIC financial updates, how individual company experience modifications work, etc. Only rarely do I write and update you on you, our member owners. So that is my topic for this month.

Last February we celebrated the 40 year anniversary of MTMIC and the Tooling Trust Fund. The success of MTMIC is mostly because of our members and the member Board of Directors. I am a numbers guy, so let me share what the MTMIC members has accomplished.

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MIOSHA has reported 9 fatalities that have occurred in 2016 so far, 7 of them were from a “fall”. That would equate to approximately one fatality per month. I know we are a good sized state, but I think that is a high number, particularly in this day and age when we are so much more aware, informed and safety conscious.

MIOSHA reported 29 fatalities for the year 2015. That would equate to more than two per month. In looking at the statistics provided by MIOSHA, age does not appear to be a factor, nor does industry. Of the 29 cases reported, 7 cases involved the employee being “struck by” something, 11 cases involved the employee being “crushed” by something, 6 cases involved the employee “falling” and 3 cases involved inhalation and/or burns.

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By Chris Demeter, Senior Loss Control Consultant

Have you ever experienced an eye injury at work or maybe at home while using that new weed whacker? The National Institute for Occupational Safety and Health (NIOSH) reports that every day about 2,000 U.S. workers sustain job-related eye injuries that require medical treatment. Using the right eye protection can lessen the severity or even prevent many of these eye injuries.

Chemicals or foreign objects in the eye and cuts or scrapes on the cornea are common eye injuries that occur at work and even at home. Other common eye injuries come from splashes with grease and oil, burns from steam, ultraviolet or infrared radiation exposure, and flying wood or metal chips.

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By Glenda Moyle, Premium Accounting Manager

Recently I have been contacted regarding our payroll auditors. I am pleased to say that like the stability of the rest of MTMIC services, our auditors have been the same for over 20 years. Our auditors are from The Aprise Group. We recently have been notified by some of our members that there is a company called “CCS” that has been contacting our members concerning WC payroll audits. This company is NOT related to MTMIC or The Aprise Group. Of course, please call me with any questions.

By Megan Brown, Vice President of Sales & Marketing

Effective July 1st, all MTMIC customers will have the ability to submit the required Form 100 through the customer portal. Once all of the fields are completed and the submit button is clicked, the Claims Department receives an email notification that a claim has been submitted. Medical documentation, notes and bills will still need to be submitted as they are currently (via fax, email or mail). We anticipate that MTMIC will have the functionality in place to accept all associated claim paperwork through the portal by the beginning of Fall. If you are interested in submitting the Form 100 through the Portal or have questions, contact Patty Allen at patricia.allen@mtmic.com/blog or (248) 488-1172, ext 1010.

Independent Rating Organizations Looking at Insurance Companies

In the insurance industry there are four well known outside independent rating organizations. These four organizations are: A.M. Best, Demotech, Standard and Poor’s, and Fitch. A.M. Best has been around over 100 years, Demotech 30 years, and Standard and Poor’s and Fitch are commonly known for rating bonds rather than insurance companies. A.M. Best is known mostly for its rating of large, national-type companies while Demotech is known as a technical actuarial-driven rating model with a focus on mid-size and small insurance companies.

Independent rating organizations exist because insurance buyers want assurance from an outside agency that their insurance company has the financial wherewithal to pay claims that might take years to payout. After all, members pay premium with the promise that their insurance company will pay for losses in the future. If the insurance company does not keep the financial reserves it needs, then its ability to pay future claims could be hampered.

MTMIC is rated by Demotech. Each quarter we send them our financial information for their review. Each year, MTMIC Management meets in person with the Demotech analysts for a presentation and Q&A. This meeting was 1 held in early June and Management updated the Demotech analysts on current claims status, workload, loss control focus, and other operational areas.

When Demotech first rated MTMIC, based on our financial condition and claims practices, we received an A rating with the description of “exceptional”. About a week after our June meeting with Demotech, we received a notice that our financial rating was being raised from A, exceptional to A’, unsurpassed. Here is their notice:

“Thank you for the supplemental information provided. This was beneficial in our review and evaluation. Based on our review of the company’s current and recent financial performance, as well as the supplemental information provided, Demotech has assigned a 2016 preliminary financial stability rating of A Prime, unsurpassed. The company has made significant progress leading to the consideration for this rating upgrade. Please note that A Prime, unsurpassed, rating carries a higher standard of financial performance including, but not limited to, consistently reporting positive underwriting and operating results, surplus growth, favorable loss reserve development, liquidity, leverage, RBC, and other financial measures on a future quarterly and annual financial statements.”

This is great news for MTMIC and its members. It shows that the company that you own is in excellent financial condition and that Management has handled their fiduciary responsibilities well. Also know that this upgrade came at a time where dividends of $6 million were paid to members. It is always harder to pay members a dividend and at the same time make sure that the finances of the company provide the stability and growth that is necessary for a financial upgrade. My congratulations to the Management team and the Board of Directors for their strong stewardship that made this financial upgrade possible.

For anyone that would like additional information about this, please do not hesitate to call me. A few of our member companies are involved in the independent rating agency pretty deeply because the jobs they get for on-site work sometimes requires them to show their insurance company independent rating organization detail. We’re happy to help through that process if the need arises.

Until next month, we will celebrate the great news, but also know that this rating was a grade in time and that continued focus is required to keep this new rating. More updates on this and our members dividend program as the year progresses.

Janine Davis and Brianna Egbert will be two of our featured speakers at the October 19th Annual Meeting and will discuss ‘The Benefits of Nurse Case Management in the Workplace: From the Form 100 to a Full Medical Release.’

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