5 Tips to Save Money on Workers’ Compensation Costs
According to OSHA, employers pay almost $1 billion for workers’ compensation costs.
Together with the high costs of premiums, workers’ compensation insurance can be burdensome to business owners.
While workplace injuries are declining, workers’ compensation costs remain sky-high. But it’s not all gloomy.
Consulting with Joyce Insurance can help you reduce the high costs of worker’s compensation insurance by getting guidance on money-saving tips such as:
Implement a return-to-work program
The longer an injured worker stays away from work, the higher the cost of compensation the insurance company pays. The employer is also impacted by higher premiums, decreased production, training and wages for replacement workers, and overtime.
Implementing a return-to-work program to enable injured workers to get back to work as soon as possible reduces turnover and improves skill retention. More importantly, injured workers will receive less compensation and employers can qualify for lesser premiums.
Use in-network medical providers
Out-of-network medical treatment and services are expensive, so you want to use only medical providers that are in your network. Doing this will help you significantly reduce out-of-pocket expenses.
To stay in-network, it helps to have a file containing all the medical providers in your network and their specialties.
Create a safety program
Create and implement a workplace safety program with the full involvement of the management and employees.
A safety program includes ensuring your employees are armed with safety knowledge and procedures, establishing safety checks, rendering periodical mental and physical health check-up services, conducting awareness workshops, etc.
Aside from creating a culture of safety, creating a safety program may qualify you for a workers’ compensation discount.
Develop an injury response protocol
Quick management of injuries immediately they occur can reduce their severity. Thus, it's essential to have a plan that’ll detail designated actions for the supervisors and claims adjuster.
When workplace accidents happen, everyone knows what’s expected of them and can quickly make decisions to ensure the injured employee gets prompt care, preventing the exacerbation of injuries that could lead to a lengthy stay away from work. Creating an injury response protocol also speeds up the claims process.
Get value for your insurance premium
Independent insurance agents are paid a percentage of your premium, which is typically between 5 and 15%.
While you won’t have to pay an insurance agent a fee for workers’ compensation insurance, you may have to pay a fee to a third party to review claims, claims analysis, safety and loss control services, and so on.
When you hire an experienced insurance agency like Joyce Insurance, you get full value for your premium and never have to hire someone else.