Why Your Business Should Conduct a Workers’ Comp Analysis

Workers’ compensation coverage protects employees under state laws providing medical care, death, disability, and rehabilitation benefits for those injured or killed while on the job. While this is a beneficial and mandatory coverage, this can be a significant investment for business owners, creating the need for a workers’ comp analysis to save money where they can.

Injuries and claims that may have once seemed insignificant have increased the cost of worker’s compensation, which is why it is so important that you have coverage that is right for you.  Keep in mind that worker’s compensation is also designed to protect the employer, not just the employee. When the injured worker files a claim, they are giving up their right to sue the employer. Note that the benefits of workers’ compensation are generally awarded on a no-fault basis, and premiums are based on the employer’s payroll and the type of duties the company’s employees perform.

Making insurance purchasing decisions must be based on more than solely bottom-line numbers. There are various methods for managing workers’ compensation costs, and your agent can help you understand how these strategies will allow you to control them by looking beyond surface-level options.

Analysis to Find the Right Coverage

Deductible Analysis

A deductible analysis is a process of looking at a deductible expense to optimize long-term savings. This typically involves checking past claims and determining how having a deductible can significantly influence the experience modifier and can be a great cost-saving tool.

Cost Containment Certification

This state-run program generates a 5% savings on workers’ compensation costs. This symbolizes to carriers that clients take safety seriously and have a comprehensive program to support their efforts to keep up company standards.

Claims Management

Another simple method that companies can use is to help manage claims. It is crucial to get claims to your carrier within 24 hours. This will allow the carrier to be involved in the process and ensure that the employee is receiving the high level of attention they should be getting if they were injured on the job. People often assume that claims and injuries are fraudulent. However, in reality, most people want to work and provide for their families. The care that an injured worker is provided immediately after an injury is the primary influencer in the timeliness of when they will recover and get back to work. Getting them back to work as soon as possible is not only the insurers and employer’s goal, but typically the employee’s as well.

Medical Provider Discount

This is a common discount offered for workers’ compensation. This may be small savings, but having this endorsement on a current policy can be very meaningful to some as they can put that money to good use in the business.

Workplace Safety Programs

Ensure that your company has secured a solid safety program. This is not only just smart business, but it is also a way to help minimize claims and costs over time.

These workers’ comp analysis strategies will help you feel more in control and fully understand what drives the premiums for your Augusta work comp insurance coverage. Some of these strategies may take time to implement, but when done properly, you can see a significant improvement in costs and your company’s safety culture.

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.