Business owners are rightfully putting their focus on watching the bottom line. As long as the company makes more money than it shells out, a business owner can typically rest easy and move ahead. The inverse of this can also be true as unexpected emergencies, taxes, and labor costs can cause businesses major financial disruptions.
One way to limit financial problems is to invest in workers’ comp insurance, which can help at least limit the financial exposure of certain risks. Business owners can insure their facilities, machinery, inventory, and their workers against certain unexpected losses with workers’ compensation, but there needs to be an understanding of how to limit workers’ compensation premiums.
Here’s a better look at what affects workers’ comp premiums and how they can be reduced.
What Affects Workers’ Compensation Insurance Premiums?
Workers’ compensation insurance can be a very expensive component of any company’s budget and business insurance programs. In most situations, the rules governing workers’ compensation insurance are set by individual state governments and costs can vary greatly from one location to another. In most cases, the rules governing workers’ compensation favor the injured worker over the business they work for.
When an injury takes place at work, the injured worker’s medical bills are paid by workers’ comp insurance. If they are unable to work for a certain period of time due to this injury, workers’ compensation benefits kick in, and are designed to replace at least a small size of the income that employee would have earned for the period of time they cannot work.
Ways to Reduce Workers’ Compensation Premiums
There are several different tips companies can use to reduce their overall workers’ compensation premiums. Work comp claims can vary widely and companies can benefit from different methods to reduce overall costs. This is especially valuable in a time where such unprecedented variables have come to the workers’ compensation environment, such as COVID-19. Here are some tips to cut down on workers’ compensation premiums.
- Assess Hazards: A company should do a thorough assessment of hazards that could cause worker injuries in a business. Depending on the size of a company, it might need to have teams of people inspect certain areas of the business in which they normally don’t work. Once a hazard is identified, it should be removed.
- Written Safety Program: A company can limit exposures and increase awareness by writing a safety program that has rules for employees to follow. Installing a safety program will help to foster a culture of workplace safety.
- Accommodate Restrictions: In some return-to-work cases, previously injured employees will need accommodations so they can successfully commit to their duties. Indemnity benefit costs are usually the most expensive part of a workers’ compensation claim. These benefits are reduced when the injured worker is working at a modified duty status.
- Safety Performance: A company should make safety performance a part of the annual employee review process. Employees who follow safety rules on a consistent basis and perform their assigned tasks in a safe manner should get a better evaluation than those who don’t. Safety performances should be reviewed and updated to help bolster company compliance.
- Investigating Workplace Injuries: A company should also investigate workplace injury incidents, no matter how small an injury is. Companies should take a critical look at the factors that led to the incident happening and determine whether or not the safety rules and procedures are sufficient enough to prevent future issues.
About InsureMyWorkComp & Their Workers Comp Solutions
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.