Saving Money on Workers Compensation Insurance
Although all fifty states require that you purchase workers compensation insurance either through a state-funded program or the private sector, there are things you can do to reduce the cost of your workers compensation insurance premiums.
Some states offer employers credits towards the cost of workers compensation insurance if they meet certain specifications. For example, if your workplace can be certified as drug and alcohol free, you might be eligible for a credit towards the cost of your workers compensation insurance. Other credits are sometimes available on a merit basis, so be sure to examine the options offered by your state government. Your insurance agent and trade organizations in your industry should be able to provide you with information on how to receive your workers compensation insurance credits.
You can also save money on the cost of workers compensation insurance by maintaining a culture of safety in the workplace. Be sure that all of your employees have received a safety manual about how to handle whatever hazardous situations they may encounter in the workplace. Post safety guidelines and procedures in prominent places around the workplace. Ensuring that your employees are aware of how to do their jobs safely will decrease your chances of someone filing a workers compensation insurance claim, which will also decrease the cost of your insurance premiums. Additionally, when your workers compensation insurance company's auditor reviews your workplace, he or she will take into account your safety measures when analyzing risk.
Be sure that you save a copy of the workers compensation insurance company auditor's report on safety in your workplace. You can use this report to verify his or her analysis for accuracy and to generate more ideas on how to improve workplace safety. You will likely have partial control over some of the potential risks listed in the auditor's report, and you can take steps to reduce these risks. For example, you can supply your employees with more modernized safety equipment to reduce their chances of injury even further.
Maintaining an understanding of changing safety trends in your industry is another way to ensure that your workplace is as safe as possible for your employees. Pay attention to the workers compensation insurance claims filed by other businesses in your industry. There may be ways to reduce the risk of your employees suffering similar incidents and filing similar claims.
Workers Compensation Insurance Directory