No matter how much of a priority you make safety at your workplace – and it should be #1 on the list – accidents inevitably happen. And when they do, your workers’ compensation insurance coverage is what can save you from skyrocketing expenses and devastating profitability, morale, and business reputation damage.
How to Lower Workers’ Compensation Expenses
Workers’ compensation claims can pose a huge risk to your company, from simple muscle strains to more serious long-term ailments. Your preparedness for these situations is what can make or break your business. In addition to the direct costs you incur, there are a number of indirect costs associated with a workplace injury. They may include any or all of the following:
- Hiring and training replacement employees.
- Adjusting work schedules.
- Investigating incidents.
- Implementing corrective measures.
- Repairing damaged equipment or property.
The Occupational Safety and Health Administration (OSHA) $afety Pays tool can be used to calculate the total cost to your organization.
Not all policies are equal.
Specific formulas are used to determine the cost of workers’ compensation insurance premiums, with considerations including annual employee earnings, your industry, and your business claims history all factored in. Your best bet in finding the right policy can often be partnering with a professional employer organization (PEO) who can assist with research and the comparison of various options, as well as cost control measures such as:
- Reviewing your premiums regularly to see if anything has changed.
- Checking for any overpayments and arranging for refunds.
- Implementing and continuously improving your company’s safety and return-to-work programs.
And about those programs …
Regularly evaluate the safety of your workplace, and design a safety program that helps prevent injuries and minimize their impact. Program components should include the ability to effectively identify potential hazards, as well as ongoing training and communication efforts. In short, never cut corners or take shortcuts when it comes to the health and well-being of your team members.
Your robust return-to-work program will ensure that you maintain ties with injured workers, get them back on the job quickly, and provide the ongoing support they and their loved ones need.
- If you ever have any doubts about your investment in safety, consider this statistic: For every dollar spent on injury prevention, a business sees a $2 to $6 return.
Looking to Lower Your Workers Compensation Expenses? Key HR Can Help!
Key HR aligns with preferred provider companies to offer the best and most innovative ways to meet our clients’ workers’ compensation and other insurance needs, as well as provide benefit, risk management, and HR services, including safety, training, and communications programs. We can help you deal with premiums, claims, regulators, and injured workers to ensure the best possible outcomes for your business, your employees, and your bottom line. Contact us today to learn more.
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- On June 23, 2021
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