Wake Board Of Education Approves Self-Insurance Program For Worker's Compensation
July 23, 2002 - Wake school administrators have found a business solution for workers' compensation and safety issues that will benefit employees and reduce school system costs.
"We're looking for ways to put business principles to work for us, and worker's compensation self-insurance will provide some significant cost savings," said Wake Superintendent Bill McNeal. "We're investing more in employee safety, and hope that will benefit our employees."
The Wake County Schools will begin a program of self-insurance for workers' compensation coverage, approved by the Board of Education at its meeting today (July 23). Wake School Administrative Services managers estimated the cost of the self-insurance plan at $696,283 to provide coverage for 2002-2003, compared with bids of $835,313 received from current provider, Key Risk Insurance, and $1,348,290 from the NC School Board Association. Two other companies were invited to bid, but offered no quote.
WCPSS managers found that over the past five years the school system had an average of 384 employees a year who filed claims that averaged out to $415,647 annually. Managers estimated they could contract with a company to manage its worker's compensation and meet medical and indemnity claims at a cost saving to the school system.
Worker's Compensation pays for employees' injuries or death caused by accident arising out of and in the course of their employement (medical) and some of the employee's lost wages (indemnity).
Employee safety programs seek to keep employees healthy and on-the-job. Effective safety programs can reduce injuries and days of employment lost to injury, reducing the costs of workers' compensation insurance.
"We believe the safety program will benefit our employees," said Del Burns, Associate Superintendent for Administrative Services. "We've worked hard to get quality teachers in our classrooms and find the right employees to support classroom instruction. It's important to provide the safest working conditions possible."
WCPSS Risk Manager Curtis Grogan began working with school system administrators last year to establish a system of safety committees. Grogan organized training that established committees at 125 schools and five school system offices.
Through the program, Grogan expects committees to alert school principals to safety issues at their schools and offices, and to make employees aware of safety concerns.
"Through the Safety Program, we've done something important for our employees," said Burns. "Through the self-insurance program, we've made a good business decision that will benefit the school system."
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