Workers compensation is a type of insurance policy that businesses are required to have to protect employees in the event that they are injured at work. Premiums for workers compensation can be high, and can increase if you claims have to be paid out, so it is a good idea for a company (especially small businesses) to do whatever they can to keep their workers comp insurance rates as low as possible. If you feel like your workers compensation insurance premiums are costing your company too much money, use the following tips to prevent higher costs:
Set Up a Workplace Safety Program
One of the best ways to prevent high workers comp premiums is by doing your best to keep employees from getting injured on the job. A comprehensive safety program with regular safety training may be an effective way to prevent accidents. Having a written safety program for the company also shows that you are serious about workplace safety and keeping employees safe while at work. To create a workplace safety program you may opt to hire a consultant, purchase an industry specific, or turn to your workers comp insurance carrier for a safety consultation.
Establish a Return to Work Program
Unfortunately, no matter how safe you try to make the workplace, accidents and injuries can still happen. This is why it is important to have a sound return to work program that will help get workers back to work as soon as possible (with doctors approval). The less time an injured employee spends out of work, the less the workers comp claim will be, and you won't have to worry about your insurance rates jumping up. It is a good idea to allow part-time hours as a person returns to work after being hurt, as well as offer modified or light duty. A return to work program can also keep relations good between your company and the employee who got hurt.
Consider Hiring a Professional Employment Organization
A professional employment organization (PEO) that specializes in workers compensation can be a valuable resource for your company. Essentially, when you hire a PEO you will outsource all aspects relating to workers comp to that firm. They will be able to use their expertise in the area to negotiate rates with workers compensation insurance carriers, evaluate the workplace safety of your company and develop a safety program, and manage any workers comp claims that may be filed. Contact a business, such as McMullen & Ochs PLLC, for more information.