Some form of workers’ compensation insurance is required in most states. For many businesses, policy costs can cause financial strain. However, in most cases, you are not simply at the mercy of underwriters. On the contrary, businesses have at least some control over insurance rates. These are three of the most effective strategies for lowering work comp costs no matter what industry you are in.
1. Reduce Company Claims
This should be done through the development and implementation of a comprehensive safety program that includes:
- Staff and management training
- Timely equipment maintenance and repairs
- Proper PPE for workers
2. Develop Accident Reporting Policies
No matter how safe your workplace is, accidents can still happen. Workers should be encouraged to report all accidents immediately through a clear and straightforward process. This should lay out what to do when an accident happens, who to report it to, and what the next steps to take are.
3. Institute a Return To Work Program
Getting employees back to work is good for your company’s bottom line. It improves productivity and lowers the cost per workers’ comp claim. That, in turn, can help keep your rates lower.
You can’t eliminate workers’ comp costs, but you can manage them. Instituting safety, reporting, and return to work policies are important steps toward lower rates.