For business owners, workers' compensation insurance is a necessity. By learning how the system works, however, you can lower your costs. You can also make sure you’re getting what you’ve paid for. Once you’ve identified a few key components, you can also plan for unexpected events. So, where do you start?
In most cases, taking a cost-effective approach is a good idea. By lowering your workers' compensation premium, you’ll reduce your overall expenses. Below, we’ve listed the five best ways to do so.
Option One: Get the Records Straight
Handle job injuries immediately. If you haven’t yet, create a process to assure your employees are getting the right care.
Talk with your agent. Make sure each processing approach deals with different injury types. Remember: Every case is different. It’s important to obtain the right information at the right time. By assessing injuries upfront, you’ll streamline the employee’s recovery. Then, you’ll likely find lowered premium rates in the future. Efficiency is key.
Option Two: Analyze Experience Modifications
A lot of business owners assume their experience modification factors are right. Still, surprises happen. If you’re leaving claims open—and if injury costs rise—you’ll encounter higher premium costs.
So, what should you do? You should make sure your company’s payroll data is accurate. Make sure all claims data is accurate, too, as well as all job classification information. The best modification to have is the culmination of your business’s last three years of data.
Option Three: Boost Overall Safety
Next, teach your employees proper safety protocols. Give them enough training to value your business’s safety policies. Then, create programs which make it easy to learn these policies. A company with solid protocols will often face lighter insurance premiums.
Option Four: Allocate Your Costs
By allocating your insurance costs, you can teach your managers how to control accidents. Your insurance expenses are a direct reflection of your management budget. By teaching your managers to prevent workers' compensation claims, you can often secure the best rates possible.
Option Five: Investigate Near-Miss Accidents
You should investigate all accidents. Talk to witnesses. Organize your findings. Make sure accidents and injuries don’t happen again. In the case of a near-miss accident, find out why it was a near-miss. No stone should go un-turned.
Your business likely has an annual workers' compensation insurance audit. If so, use this opportunity to double-check your numbers. If they’re all correct, you’ll find it much easier to obtain good premiums.
Also Read: Employer Programs to Make Workers Compensation Insurance More Effective