Home Careers Contact Us
Why SFM? Agents Employers Self-Insured (TPA) Injured Workers Providers About SFM
Managing Claims Return to Work Injury Prevention Online Services Premium Audit EPL Resources Resources
Home > Employers > Return to Work > Impact on Your Premium

Impact of Return to Work on Your Premium


A segment for policyholders with information on how e-mods affect a company's bottom line. Taken from SFM's webinar, "Return to Work: Two reasons why. Six steps how."


Bringing an employee back to work as soon as medically possible can substantially reduce the claim's impact on your workers' compensation premium.

Let's say one of your employees sustains a back injury. Temporary medical restrictions will be in place for three months. How will this injury affect the costs of the claim and ultimately your premium?

It depends on which scenario you follow in the example below. Your SFM claims representative can calculate the dollar amounts for your specific case.

Key variables:

  • When the employee returns to work
  • The amount paid in workers' compensation wage-loss benefits, if any

Learn more about lowering costs Arrow

Example return to work scenarios and their premium impact


Scenario 1

Early return to lighter-duty work

Scenario 2

Return delayed while employer develops lighter-duty position

Scenario 3

Employer waits until the employee is fully recovered

Employee returns to work

(calendar days)
Medical restrictions after returning to work

At 3 days


At 5 days


At 3 months


Work load after returning to work Lighter-duty Lighter-duty Full duty
Wages paid by employer after return to work Full Full Full
Wage-loss benefits paid by work comp None Total for 2 days Total for 3 months
Claim *Medical-only Lost-time Lost-time
Total claim costs including medical and wage-loss benefits $1,500 $2,000 $12,000
Increases experience modification (e-mod) by an additional: (average e-mod is 1.00) *0.03 0.12 0.34
Increases annual premium of $10,175 by an additional: $305 $1,221 $3460
*Claim does not involve wage loss, so claim costs are discounted 70 percent in calculating your e-mod.



SFM home page SFM home page