As a responsible business owner, your main priority should be to keep your employees healthy, happy, and safe on the job. However, despite doing everything, accidents still happen even on the most safety-conscious job sites.
To prepare for such unfortunate accidents, businesses must provide their employees with adequate workers’ compensation benefits which also help boost their reputation and draw potential employees to your company. However, depending on the nature of your business, the costs for these types of policies can be prohibitively expensive.
Luckily, there are workers’ compensation cost reduction strategies you can take as an employer. If this is something that interests you, continue reading below.
Get the Right Insurance Coverage
The first step to reducing your workers’ compensation costs is to shop around for a simple and affordable workman’s compensation insurance. In case an employee sustains an injury or falls ill at work, they can receive medical and salary benefits with this type of insurance. It will cover the costs of medical expenses, any missed wages, and even death benefits.
Suppose you run a business in a state with a competitive market. In that case, it’s a good idea to speak to several insurance providers about the monthly rate they’re willing to offer your company and you should do this every few years as different companies modify their prices to attract organizations away from their competitors.
One of the most important things a company can do is to ensure that its claims adjuster is following the workers’ compensation claims management best practices. This can significantly reduce the payout amount by up to 50% which can be crucial savings for any type of business. Such best practices include regular tasks such as making in-person contact with the worker and even medical staff to address any issues that may arise quickly.
Ensuring that all paperwork is filed in due time, verifying coverage, and keeping a daily diary of all work completed on the claim are just some of the ways that an adjuster can make the whole process smoother and also save your company money.
Cultivating a culture of safety is another excellent way to reduce the costs associated with workers’ compensation and at the same time boost morale at your company. Doing this is probably easier said than done and as a business owner, you’re most likely doing some of this work already.
Make sure you continually provide employees with essential safety knowledge resources and best practices and introduce safety checks at regular intervals. Having regular safety checks performed throughout the day is essential as they help remind employees about safety any time they’re in the workspace.
More comprehensive safety checks can be carried out weekly or monthly. Putting the proper focus on safety not only reduces the number of unfortunate accidents and injuries among your employees, but it will also show them that you care about them, their health, and safety.
Introduce a Safety Program
Many injuries can be avoided by setting up a safety program as it will allow you to identify and eliminate hazards in the workplace that might cause serious accidents and severe injuries. Studies have also shown that the return on investment for such safety programs is strong.
This is also why many states mandate employers to have a well-written safety program. When a company writes down standards and procedures, it shows that the organization is committed to providing a safe environment for its employees.
When you set up your safety program for your company, keep in mind that it is a lot more than just a plain document. The company’s management should embrace it and introduce proper training as this will make a profound difference in employee safety that will ultimately reduce the workers’ compensation costs.
Even with an exemplary safety program, accidents are bound to happen and when they do, a return-to-work program can contribute to creating a direct cost benefit to the workers’ compensation claim.
The main goal of this program is to help injured workers return to their office lives as soon as possible, even if it’s on a modified basis as they are on the road to recovery. This includes the option for an employee to work either part-time or light-duty hours.
This type of program contributes to employee retention and reduces the chances of having a worker not return to their job.
Workers’ compensation is essential for any type of business but it doesn’t have to end up being a financial burden to keep your workers safe. Encourage safety routines and programs, and introduce proper claims management best practices as they’ll go a long way in helping you find savings opportunities for your company.