Workers compensation insurance is a type of insurance that all employers are legally required to carry. This type of insurance protects an employee if he or she is injured while on the clock at work. If an injury occurs at work, a claim is filed and the insurance company will cover the cost of the employee's medical treatment and cover any lost wages. Workers compensation insurance is great for protecting employees, but premiums can also be quite high. Thus it is not surprising that many small business owners are looking for ways to lower their workers comp expenses. Use the following tips to help you deal with high workers comp premiums and find way to reduce the cost:
Shop Around
Even if you're currently happy with the insurance company that your buy your company's workers compensation insurance through, that doesn't necessarily mean that they are offering you the best rates on your premiums. One of the easiest ways to reduce your workers compensation insurance premiums and ensure that you have the lowest rates being offered is by shopping around and checking out all of your options. You may want to work with an insurance broker who can provide you with price quotes for a workers comp policy from multiple different insurance companies. Compare the quotes you receive to see if other insurance companies can offer you better rates than your current insurance company.
Create a Written Safety Plan
When an insurance company is determining premiums for a workers compensation insurance policy, one of the things that they look at is how much of a risk it is to insure your company. A simple way to make your company a lower risk to insure is by creating a written safety plan. After you have a safety plan made, it is important to then conduct a training session to make sure that all of your employees understand the safety plan. Having a safety plan in replace can lower the chances of workplace injuries and accidents from occurring, which can result in lower insurance premiums for you company.
Enforce a Substance-Free Workplace Policy
When a person is under the influence of alcohol or drugs, he or she is more likely to make mistakes that can result in injuries.If you want to decrease the chance of workplace injuries, and thus lower your workers comp insurance rates, it is in your best interest to enforce a substance-fee workplace policy. Let your insurance company know that all employees must pass a drug and alcohol screening before being hired. It can also be beneficial to conduct random drug tests.
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