5 Useful Tips for Reducing Workers’ Comp Costs » Small Business Bonfire

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Every responsible business owner wants their employees to be healthy, safe, and happy on the job. However, we all know that accidents can and do happen, even in the most safety-conscious place.

As a manager, you need to prepare for such unfortunate accidents and provide your employees with adequate compensation benefits as this can also attract potential top talent to your company. However, the costs of these types of policies can truly be burdensome and can take a toll on your business.

Having a plan in place is indispensable if you want to make sure that you can manage a sizeable risk that a workers’ compensation claim may pose to your business.

Fortunately, there are steps you can take to minimize the costs associated with providing workers’ compensation and protect your business.

Save Money on Worker’s Comp Insurance

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Just like you want the best car or health insurance, it’s crucial to look for and choose the best workers compensation insurance policy. If you live in a place that has a competitive market, then it’s a smart idea to speak to several insurance providers about the monthly rate they are ready to offer you and your company.

Business-savvy managers can even do this every few years since different insurance providers will alter their prices to attract companies away from their competitors.

Prevent Injuries

Preventing work-related injuries and illnesses is one of the best cost-reduction solutions. You should always look for ways to actively support your company’s safety, ergonomics and health program and make your employees know that you’re always open to new ideas and actions. The ideas that they share can potentially reduce claims.

Ensure that all accidents, workplace injuries, and occupational illnesses are properly investigated and that you assume an active role in identifying, correcting, and eliminating any workplace hazards and unsafe behavior through adequate safety, health, and ergonomics training.

You must maintain safety awareness at all times and address potential issues immediately as the ROI for such actions is well proven.

Have an Injury Procedure in Place

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A tip to reduce workers’ comp costs is to manage any sustained injuries quickly before they become worse. The way to go about this is to have a proper plan in place in the event of an onsite work injury. This type of plan should be part of the company’s culture of safety and include immediate actions that should be undertaken by managers, supervisors, workers, as well as the claims adjuster.

To ensure that this process runs smoothly, everyone should be assigned a specific role. As you put a plan in place, you empower your staff to make decisions that can minimize the severity of workplace injuries. In addition, it reassures your employees that should they ever get injured, the company and their colleagues will know what to do.

Partner With a Professional Employer Organization 

Trying to reduce your workers’ compensation costs can seem like an uphill battle. One of the best ways for your business to control workers’ comp costs and reduce your burden is to partner with a professional employer organization (PEO) because this might save you a lot of time and money.

A trusted PEO will provide your company with access to HR experts that can help you implement changes necessary to keep your workers’ compensation rates down, manage any injury claims, and help you avoid getting hit with huge premiums all while making sure this complies with both state and federal laws.

In addition, a PEO can provide you with a comprehensive suite of services such as assisting your business to navigate safety at the workplace by providing consultations, safety inspections, and helping you reduce the number of claims by eliminating fraudulent claims.

Get Injured Employees Back to Work 

Research has shown that companies who stay in contact with injured employees during their time away from work have greater chances for lower costs associated with workers’ compensation claims. This is why you should make it your goal to implement a program that encourages employees to get back to work as quickly as possible.

A return-to-work strategy will have both direct and indirect cost benefits for your business. Also, everyone wins with such a strategy as the company will pay less the faster an injured individual is back at work earning their paycheck. It also prevents any feelings of alienation between the employers and employees because of prolonged absence and reduces the chance that the employee will not return to the job.

Workers’ compensation costs are known to weigh down a company’s budget. Bundled together, these useful strategies can make a world of difference toward better controlling your workers’ comp costs, saving money, and fostering a high-return culture of safety at your company.

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