As an employer, you must purchase workers’ compensation insurance for eligible workers. This can lead to a substantial cost. However, what you pay for workers’ comp coverage is not out of your control. Follow these tips to better manage your insurance premiums and business expenses.
Implement a Workplace Safety Program
Implementing a comprehensive workplace and employee safety program saves money in several ways. First, it reduces overall accidents and your costs associated with them. It can also reduce insurance premiums. One of the factors affecting workers’ compensation premiums is the company’s safety record and current accident prevention policies. A safer workplace with fewer accidents will pay less than others for comparable coverage.
Encourage Employees to Return to Work
It is also beneficial to get employees back to work quickly after an injury. If they are unable to return to a previous role, offering alternate or adapted opportunities for work is an option. It helps reduce workers’ compensation insurance payouts and improves the company risk profile.
Minimize Fraudulent Claims
Although it isn’t something you want to think about your own employees, some worker’s compensation claims are fraudulent. A process to vet claims can help limit this practice and lower your rates.
While you might not be able to opt-out of coverage, you do have at least some control over company insurance costs. Work with a knowledgeable insurance agent to develop a strategy that minimizes liability and risk without overwhelming your finances.