As a business owner or contractor, especially those in blue-collar industries, workers’ compensation insurance is crucial to cover the cost of an injured employee. While you hope none of your employees face a severe injury, it’s essential to prepare. If you do end up having to employ your workers’ comp insurance, the hope is that the use isn’t drastic enough to increase the premium.
Worker’s comp insurance prices are variable and vary by state and industry. The two factors that most increase the cost of a business owner’s work comp insurance are injury frequency and severity. If your premiums seem to be steadily increasing, it may be time to take a look at the safety measures your business employs.
To reduce workers’ compensation insurance costs, consider the following solutions:
- Take stock of the hazards in your workplace: You may need to bring in a neutral third-party to gain a fresh perspective and point out hazards you might not see. If any hazards are noticeable, take action to replace the item as soon as possible. If replacement isn’t possible, take the proper precautions, like issuing personal protective equipment to employees who work around the hazards.
- Write up a safety manual that your employees must follow: If any employee adheres from the safety measures, hold their actions accountable. This will help foster a safer workplace.
- If an injured worker is allowed to return to work in a “modified status,” put them to work in some capacity. Studies have shown that employees heal 30% faster on the job than sitting at home.
- Investigate all workplace injuries, no matter the severity: Even if an employee sprains an ankle, check the site. The hazards may be minor, but if unaddressed, it could become much worse and lead to severe injuries.
- Don’t ignore the claims adjuster: The adjuster will follow the state’s protocols to a tee. Working closely with them and staying updated on the injured employee’s status, the quicker the claim will be resolved.
- Review your loss history quarterly: Requesting and reviewing your quarterly workers’ comp losses will help you identify injury trends and make the appropriate adjustments.
Lastly, don’t fall into the trap of keeping the same insurance year after year. It’s okay to shop around, and there is a good chance you may find an option more suitable for your business and its bottom line. And remember, business owners have allies as well to look out for their best interests.
