5 Strategies to Lower Your Workers’ Comp Costs

We all want our employees to be healthy, happy, and safe on the job, but mishaps are inevitable. To prepare for these accidents, we can offer employees adequate workers’ compensation benefits, which also draws potential employees to your company. Workers’ comp costs can become burdensome for some business owners. Luckily there are strategies that can be administered to reduce the cost associated with providing workers’ compensation benefits. Keep in mind that specific factors directly impact your rate, such as the type of business you own, which is why it is so important that your business is classified in the right category to get a fair and reasonable premium rate.

Workers’ compensation is a necessity, but it doesn’t have to be such a financial burden to keep employees safe. Take advantage of these fundamental and simple strategies your company can do right now to reduce workers; comp costs.

Follow Claims Management Best Practices

Possibly the most impactful thing you can do is ensure that the claims adjuster follows best practices associated with claims management. This could potentially cut your costs in half.

Ways an adjuster can make the entire process move smoothly and save you money:

  • Make in-person contact with employees
  • Make sure that all paperwork is filed in a timely manner
  • Verify coverage and keep a daily diary of all work completed on the claim

Each type of business will have a different overall rate and every employee will also have differences in the cost associated with their classification, as different tasks have their own set of risks associated with them. You can save quite a bit of money by ensuring that each employee is classified correctly in their current job and within the policy.

When proper claims management best practices are in place and followed, your employees will be able to return to work quicker and production can return to normal.

Focus on Safety

You can significantly reduce workers’ compensation costs and improve morale by cultivating a culture of safety. It is crucial to provide employees with essential safety knowledge resources and best practices. If you don’t have them already, institute safety checks at regular intervals. Regular safety checks throughout the day are vital to employees for keeping safety at the top of their minds in the workspace. In depth safety checks should be scheduled at least once a month as well. Focusing on safety will lower the frequency of accidents and injuries among your employees and show them that you care about them and their safety.

Continue to encourage safety routines and programs to help reduce your workers’ compensation costs. After starting to implement safety measures, you may notice a reduction in workplace accidents, and insurers sometimes are then able to credit you for having had a year of improved safety. These safety rewards are typically only issued after a policy has expired and after having one year of fewer claims.

 Secure an Injury Protocol

What is the protocol when an injury does take place? There should be a very clear answer to this within your company that every employee is well aware of. It’s essential to manage injuries effectively and efficiently before they become worse. Part of having a culture of safety is having a proper plan in place in the event of an onsite work injury. This plan should thoroughly state immediate actions that should be taken by supervisors, other workers, and the claims adjuster. It is important that everyone is assigned a role in order for this process to run smoothly. Establishing this plan will empower employees to make decisions that can, in turn, reduce the severity of workplace injuries. It also reassures them that the company and their co-workers are prepared if they were to become injured.

New Hire Programs

How do you take care of your new hires? Employees, especially new hires, will often benefit from incentive programs that reward them for learning the safety protocol. Investing this time in your new hires is very wise for your overall safety success. Older employees can also be encouraged to help the newer hires learn about the company’s safety culture through other group incentives.

Return to Work Programs

Companies that stay in contact with injured employees throughout their time away from work are more likely to have lower costs associated with workers’ compensation claims. It is in your best interest to have a program that encourages employees to return from work as soon as their injuries allow them. The quicker an injured worker is back at work earning their paycheck, the less the company will have to lose. Speak to your Augusta workers compensation insurance agent today to inquire about the ways your company can benefit from these strategies.

About SB One Insurance Agency

At SB One Insurance Agency, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 60 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.