If you run a business, you're likely aware of the importance of having workers' compensation insurance. This type of insurance protects your employees in the event of a work-related injury or illness, and can help cover their medical expenses and lost wages. But workers' comp insurance can also be expensive, especially if you're operating in a high-risk industry. Fortunately, there are a few ways you can save money on your workers' compensation insurance policy.
- Implement safety measures: One of the biggest factors that impacts your workers' compensation insurance premium is your safety record. The more accidents and injuries that occur in your workplace, the higher your premiums will be. By implementing safety measures and training your employees on proper workplace safety protocols, you can reduce the likelihood of accidents and injuries, and in turn, lower your insurance costs.
- Partner with a professional employer organization (PEO): A PEO is a company that can handle HR-related tasks for your business, including workers' compensation insurance. By partnering with a PEO, you can access their workers' compensation insurance policy, which may be more cost-effective than purchasing your own policy.
- Shop around for insurance providers: Just like with any type of insurance, it's important to shop around for workers' compensation insurance providers. Compare rates from multiple companies and don't be afraid to negotiate for a better price.
- Review and audit your policy regularly: It's important to review your workers' compensation insurance policy regularly to ensure that you're not paying for coverage you don't need. You should also audit your policy to ensure that you're not overpaying for coverage that you do need.
- Opt for a higher deductible: A higher deductible means that you'll pay more out-of-pocket in the event of a claim, but it also means that your premiums will be lower. Consider whether a higher deductible makes sense for your business.
- Light Duty Return to Work: Institute a Light Duty Return to Work program. This will get back injured employees back to work in some capacity. Even if they are doing clerical work or pushing a broom. Get them back to work.
- Manage claims effectively: When an employee does file a workers' compensation claim, it's important to manage the claim effectively to minimize costs. Work with the insurance company to ensure that the employee receives the care they need, but also monitor the progress of the claim to ensure that it's being handled appropriately.
In conclusion, there are a number of ways you can save money on your workers' compensation insurance policy. By implementing safety measures, partnering with a PEO, shopping around for insurance providers, reviewing and auditing your policy regularly, opting for a higher deductible, and managing claims effectively, you can lower your premiums and protect your business and employees.