Keeping Your Workers’ Comp Claim Costs Low

Hopefully, you strive for healthy, happy and safe employees. Responsible employers provide employees with adequate workers’ compensation benefits and work to promote a positive safety culture. However, accidents are inevitable, even in the most safety-conscious workplace.  Fortunately, there are strategies to reduce the cost associated with providing workers’ compensation benefits, without denying employees the coverage that they need. Here are some fundamental steps that can be done right now to reduce the amount of money spent on implementing New Jersey workers’ compensation. 

Management Best Practices

Ensuring that your claims adjuster follows best practices associated with claims management can reduce the amount of payout by up to 50 percent. These “best practices” include simple tasks, such as making in-person contact with the employee and perhaps medical personnel in order to address any issues that may arise quickly. Making sure that all paperwork is filed in a timely manner, verifying coverage and keeping a daily journal of all work completed on the claim helps make the entire process move smoothly and save you money.

A Greater Focus on Safety

Be sure to cultivate a culture of safety! Continually 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 crucial to keep safety on top of mind for employees. More comprehensive safety checks can be scheduled weekly and/or monthly. Focusing on safety will not only reduce the number of accidents and injuries among your employees, but it will also improve morale.

Formal Injury Procedures

It’s essential to manage any injuries quickly and effectively 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 would include immediate actions to be taken by supervisors, other workers, and the claims adjuster. Everyone should be assigned a role for this process to run smoothly. This will empower employees to make decisions that can reduce the severity of workplace injuries and reassures them, should they ever be injured, that the company and their co-workers will know what to do.

Return-to-Work Programs

Research has shown that companies who are in contact with injured employees during their time away from work are more likely to have lower costs associated with workers’ compensation claims. Implement a program that encourages employees to return from work as soon as their injuries allow. The company will pay less the quicker an injured worker is back at work earning a paycheck. In this scenario, everyone wins.

Employee Classifications

While it’s true that each type of business will have a different overall rate, each kind of employee will also have differences in the cost associated with their classification. For example, a sheet metal worker will have a different standard than your bookkeeper who is rarely on the manufacturing floor. Ensure each employee is classified correctly in their current job within your policy. 

Safety Rewards

After beginning some of these ideas, you may notice a reduction in workplace accidents. Check with your New Jersey workers’ comp provider to see if they will give you credit for having had a year of improved safety. 

Workers’ compensation is a necessity for any business; but doesn’t have to be a complete financial burden to keep your employees safe. There are many ways to encourage safety routines and programs that will help you to reduce your New Jersey workers comp costs.

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.