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Over Seven Decades of Making Safety Pay
Lovell Safety Management and New York Employers' Workers' Compensation Insurance
By Moira Gentry
The Workers' Compensation Law was created in 1914 to provide benefits to workers injured on the job. Twelve years later, this law was broadened to include job-related diseases. All employers are required to insure their employees against on-the-job accidents, regardless of responsibility or fault.
The formation of safety groups was authorized by Sections 96 and 97 of the original law to help prevent occupational accidents and diseases, improve medical care to workers, and reduce the cost of Workers' Compensation Insurance for employers. Founded by Jac Lovell in 1936, Lovell Safety Management Co., LLC is New York's largest, oldest, and most successful safety group manager, and has earned their reputation as the premier safety group administrator in the state. What Mr. Lovell recognized in 1936 is still true—not all workers' compensation coverage is created equal. The skill and dedication of the people who service a policy can have a profound impact on employer costs.
Stephen J. Lovell, Chairman
Mr. Lovell is a member of the New York State Bar Association and the American Bar Association, and has participated in these agencies' Insurance and Workers' Compensation Committees. Mr. Lovell is a long-time member of the American Society of Safety Engineers and past president of the Association of Safety Group Managers. He has contributed his expertise and experience to the efforts of the Workers' Compensation Committee of the New York Chamber of Commerce and the Business Council of New York State, Inc.
In 1970, Lovell Safety Management had 15 employees operating out of a single office location, servicing 300 group members. Today, Lovell has almost 90 employees, servicing over 3,350 businesses throughout New York State, operating out of multiple locations.
A safety group is a collection of companies in the same trade or industry that encounters and manages a similar set of work conditions, safety hazards, and job risks. The group cooperatively secures its state-mandated Workers' Compensation Insurance.
Lovell Safety Groups provide businesses with the benefits of a guaranteed cost premium with additional savings earned through dividends. Qualified safety group members receive substantial advance discounts and year-end cash dividends. In addition, Lovell's cost-guaranteed, fully insured program protects the assets of each member company.
Barry Lovell, President
Currently a member of the board of AMCOMP (the American Society of Workers' Compensation Professionals), and treasurer of the Association of Safety Group Managers, Mr. Lovell has taken an active role in the public discussion of Workers' Compensation reform. Mr. Lovell frequently addresses business groups, and has provided testimony to the Workers' Compensation Board on technical issues.
As Workers' Compensation Insurance and the laws and regulations governing it became more complex, Lovell worked with legislative leaders, playing a key role in lobbying for specific workers' compensation reforms that were ultimately enacted by the New York State Legislature in 1996. Today, Lovell works closely with all key agencies and parties involved in workers’ compensation on an ongoing basis, proposing new regulations and procedures that minimize employer costs, speed up claims resolutions, and eliminate fraud.
Lovell created several safety group management techniques and programs that have since been widely adopted in the industry. One of these is the Service Team approach. Service Teams are assembled and given responsibility for client satisfaction in a particular geographic region. Every client has an account representative, along with Lovell representatives in every other department: claims, safety, and underwriting. The members of the service team work together and use their collective expertise to provide safety training programs, effective claims management, and problem solving.
Martin R. Vulpis, Executive Vice President
Mr. Vulpis devised service teams, which focus on client retention and establish closer relationships with Lovell clients, thereby providing superior service and implementing effective solutions to pertinent issues.
Another technique developed by Mr. Vulpis is Lovell's unique Early Intervention Program. This program facilitates contact among employer, injured worker and medical caregiver during the critical, initial 24-hour period. As a result of its Early Intervention Program, Lovell has realized consistent client satisfaction and higher dividends for its safety group members.
Early Intervention / Nurse Case Management Services
Lovell's Early Intervention Program provides crucial contact among employer, injured employee, and medical provider within 24 hours of any reported lost time claim. Upon receipt of an employer's First Report of Injury, Form C-2, Lovell immediately assigns a Nurse Case Manager to the incident.
The Nurse Case Manager maintains close contact with all three parties in order to coordinate and expedite necessary medical care, hasten benefits approvals, and implement a return-to-work strategy. Through the intervention and oversight of the Nurse Case Manager and Early Intervention Claims Examiner, employers are sure of accelerated authorization of tests and procedures, which results in faster recovery time, accurate evaluation of work and pay status to determine appropriate levels of benefits, close review of treatment plans that discourage abusive or excessive treatment practices by medical providers, and regular contact with injured employees.
In the meantime, the member company's Service Team monitors the case with the insurance carrier to make sure of proper handling during the critical, initial 120-day period. Independent medical examinations and field investigations are scheduled, if deemed advisable. In the event of an employee’s apparent malingering, the Lovell staff initiates challenges to excessive treatment by medical providers, requests hearings, becomes involved in settlement negotiations and investigates prior injuries and medical conditions.
Underwriting Services
Before a new company joins a Lovell safety group, Lovell's Underwriting Department completes a careful review of the potential new members' track records and previous losses to make sure that the new member will be a positive addition to their safety group. Each new Lovell safety group member must be committed to safety, and to controlling workers' compensation losses.
Once accepted into a Lovell Safety Group, a member receives attention and help from Lovell claims and safety experts to keep losses as low as possible. Lovell experts assist each client with the details of their coverage, billing, and experience rating modifications.
Additionally, Lovell's Underwriting Department staff helps group members with audits to make sure that bills accurately reflect audit results. The underwriting team examines all audits and makes sure appropriate credits are applied.
Harold Shiffrin, Vice President, Director of Claims
Over the past years, Mr. Shiffrin has strengthened Lovell's reputation for insightful case analysis and effective reserve reductions for its group members. He oversees a staff of 25 claims professionals. Collectively, they were able to generate $32 Million in savings over the past year for Lovell Group Members.
Claims Reporting and Management
New York State Workers' Compensation Law requires an employer to file a First Report of Injury, Form C-2, within 10 days of a reportable incident. Prompt reporting by the employer of all work-related accidents and occupational illnesses is essential.
The Lovell Claims Department innovated the Early Intervention Program, which coordinates medical care so that employee treatment is appropriate, timely, and cost-effective. Additionally, on acceptance into any of Lovell's Safety Groups, a member company is given a copy of Lovell's Claims Procedure Manual and a designated company staff member is instructed on the proper method for filing workers' compensation claims.
The Lovell Claims Department also directs investigations into employees' pre-existing medical conditions and, where appropriate, applies to reduce eligible high-cost claims based on a prior disability. In the event that an employee is resistant to early intervention initiatives and appears reluctant to return to work, the Lovell staff provides a strong defense position at hearings, settlement negotiations, and challenges to excessive treatment proposed by medical providers. If contested claims are brought to the Workers' Compensation Board for hearings, a Lovell representative monitors selected hearings and directs the carrier on continued litigation.
With the 2007 reforms, employers face a system in transition. New medical treatment guidelines are soon to take effect, and the Workers' Compensation Board will soon be implementing revised disability evaluation guidelines. The experts at Lovell have already begun to advocate for employers, not only by adapting our strategy on individual claims, but also by communicating with the Workers' Compensation Board.
Susan Geier Fahmy, CSP, Vice President, Director of Safety & Health Services
Ms. Fahmy is a Certified Safety Professional, holds a Master of Arts in Occupational Safety and Health from New York University, Center for Safety, and numerous other certifications as a safety professional.
Safety Services
On enrolling in a Lovell-managed safety group, the member company’s facility receives an on-site evaluation by a Lovell safety professional, who then identifies potential risks, physical hazards, and existing exposures to employees. Additionally, the Lovell safety professional reviews and categorizes previous incident and accident reports. By studying past records, the Lovell staff identify patterns and trends in member companies’ loss history.
The Lovell safety staff, which consists of seven full-time professionals, assists member companies in devising and implementing effective Safety and Health Programs aimed at reducing workers' compensation costs and has developed numerous informative manuals to assist employers in complying with OSHA/PESH regulations.
Regulatory Compliance
Understanding and complying with OSHA and other safety regulations can be difficult, time-consuming, and costly, but the result of non-compliance can be even more costly. Lovell works with their member companies to help them maintain regulatory compliance, reduce business risk, and control costs. This includes facility and site audits, safety training, development of policies and procedures and OSHA negotiations. This work helps businesses develop a sustainable and cost-effective solution to regulatory compliance.
Client Advocacy
Serving as their clients' advocate, while taking an aggressive stance on questionable claims, Lovell is committed to securing quick, thorough delivery of medical services—expediting recovery and minimizing lost work time. More than 3,350 companies—and their hundreds of thousands of employees—rely on Lovell Safety Management to handle their workers' compensation and related questions and issues.