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How to Save Money on Workers’ Compensation Insurance

Posted February 19 2015


save moneySlip and falls, overexertion, accidents, are just a few of the workplace misfortunes that can cause you to pay a pretty penny in workers’ compensation. There are several things you can do to help save you money on workers’ compensation insurance. A good way to look at it is the same way you would look to save money on your auto insurance, taking the necessary preventative measures. 

 

1. Check the Office 

One of the first things you can do is see if your carrier will come to your workplace and offer advice and tips on things to fix. Make these corrections and fix any hazards that are pointed out. If your carrier doesn’t offer this service, there are risk service managers who can do it for you. 

2. Training Programs 

Having properly trained employees can lead to more efficient and better workers. A person who is properly trained to use a machine is less likely to cause an accident than a person who is learning on the job. Training programs are also important in reducing the risk of user errors around the workplace.

3. Drug Free Workplace Policy 

It may seem comical that we even need to mention a drug free workplace, but according to the Substance Abuse and Mental Health Services Administration, “employed drug abusers cost their employers about twice as much in medical and worker compensation as their drug-free coworkers.” It is a good idea to screen new hires and make job offers dependent on passing a drug test. Also, arrange for random drug testing of all employees. Include all of the substance abuse rules that you would like employees to follow in the employee handbook, and include the disciplinary action for each offense. These steps can pay off because there typically is a discount associated for employers who arrange a drug free workplace program. 

4. Safety Program 

A proper safety program can lead to a drop in workers’ compensation insurance premiums. Premiums typically reflect the amount and types of injuries that happen in your workplace. A well thought and successful safety program that encourages employees to think safety first, rather than go through motions, can reduce the number of accidents and injuries, which may lead to more money in your pocket.

5. Accident Response Plan 

No matter how many training programs are installed, accidents will still happen. So having a good accident response plan could be crucial in helping you save money on your workers’ compensation insurance. A good accident response plan can help limit the severity of an injury, thus decreasing the amount to be paid out. For example, if an employee happens to get injured on the job, having proper immediate attention to the injury may reduce the amount of medical attention needed to be done, creating a smaller medical bill. A less expensive claim, means a less expensive premium. 

6. Evaluate Your Policy Annually 

If possible, every year you should try to review your policy with your agent. A lot can happen in a year, and things may have changed causing you to update your policy for more or less coverage. Also, this will build your relationship with your insurance agent, and let them see you are very serious about reducing your costs, taking all the proactive measures that you can. 

7. Outsource

If your business involves dangerous work, it may be smart to consider outsourcing those jobs. Obviously there are some jobs that just cannot be outsourced, but for those that can, take a look into it. Let the risk of someone getting injured be on someone else’s watch, not yours. It may also save your business money overall, not just on workers’ compensation insurance. 

Workers’ Compensation Insurance should be a top priority for all businesses to have. If you would like more information on workers’ compensation, read our previous blog, “Hard to Place Workers’ Compensation Insurance Solutions.” If you have any questions, or are interested in purchasing workers’ compensation insurance, or any other form of business insurance, please contact us at 954-828-1819 or visit us online at mhginsurance.com. Our insurance specialists have the knowledge and experience to assist and advise your business about all the necessary business insurances.