For most small businesses, workers compensation insurance costs can eat up a fair percentage of their income. While this type of coverage is essential, especially for riskier professions, there are a few ways to minimize your workers comp insurance expenditures without sacrificing the level of coverage necessary for your enterprise.
Here are some helpful tips to keep your costs under control:
Correctly classify your employees
Take a look at what you are paying in workers comp insurance per employee, and then ask yourself if all of these employees require the same level of coverage in relation to the riskiness of their profession. For instance, a typical office manager is far less likely to require workers compensation payments than a typical carpenter. Most workers compensation insurance companies charge different rates for these professions accordingly, so make sure that you aren't being overcharged for workers compensation insurance that you don't need.
Familiarize yourself with relevant OSHA safety standards, and train your employees accordingly
As they say, an ounce of prevention is worth a pound of cure. OSHA regulations exist for a reason, and one should always be careful about staying within the letter of the law in this matter. If you are unsure of the relevant standards, your local OSHA safety office can offer clarification. Make sure that your employees are well aware of their rights under OSHA statutes, and what they need to do in order to remain compliant. A workforce that is familiar and compliant with the basic safety standards of their industry is one that is less likely to utilize workers compensation insurance over the course of their tenure.
Ensure that all tools, equipment, and grounds are safe/in good working order
Make it a point to periodically check any motorized tools for dirt, debris, or other potential hazards, and have your employees periodically check things like brakes, fluid levels, and other vehicular aspects that can potentially pose a safety hazard if not up to par. Your workers compensation insurance is less likely to be needed if all tools and vehicles are in proper working order, so make sure that your employees understand that it is part of their regular work duties to clean, maintain, and lubricate their tools, vehicles, and work stations alike. You should also make sure that any physical grounds (such as your office, parking lots, and walkways,) are easy to access, free of debris, ice, or snow, and are as safe as possible. Workers compensation insurance will need to be tapped into if someone hurts themselves while on your property, so bear this in mind as you go!
Address claims quickly and compassionately
Whenever the unthinkable happens despite the best laid plans, you can help to minimize the impact on your workers compensation insurance rates in a number of different ways. Make sure that the employee gets the medical help they need immediately, and make sure that their expenses are paid accordingly. Minimize the need for lawyers to get involved, make it as easy as possible for the employee in question to recover and return to work, and show genuine concern all the way through. This should help keep your workers compensation insurance rates reasonable throughout the life of your business.
In short, make sure that you look over your workers compensation insurance rates closely, itemize what you are paying per employee and why, and take all necessary steps to help your employees realize that their safety is priority number one!
Need help with reducing workers compensation costs? Contact American Insuring Group today to learn more.
