How to Reduce Workers’ Compensation Costs
Workers’ compensation insurance can become a huge expense when workers become injured due to safety breaches or plain negligence. According to the National Federation of Independent Businesses, 33% of small business owners identified workers’ compensation as a huge, critical issue. This is because, if an employee becomes injured in the workplace, workers’ compensation will step in and take care of medical bills, payment for lost time at work, and so much more. These can become huge expenses over time.
So, what are some ways that businesses can reduce workers’ compensation costs in the workplace and get back on track?
Always take immediate action when a claim occurs. When an employer finds out that there has been an injury on the job, they should complete an accident report immediately. Some great steps to take include photographic evidence of the scene, speaking with potential witnesses, and sending the accident report to the insurance company within 24 hours to help fight fraudulent claims.
Beware of fraud. This brings us to the second point – be aware of possible fraud under any circumstances. Any employer should review their policy for accuracy and investigate if there is suspicion of a fraudulent claim. One should ask themselves: Is the payroll correct? Are the class codes correct?
Loss prevention is key. Are there measures that an employer can take to assure that accidents don’t happen in the first place? This will help prevent injuries and reduce costs right from the very start.
Having the Right Safety Program in Place
A workplace safety program can go a long way in terms of keeping workers safe and reducing workers’ compensation costs. Having a safety program in place will help prevent injuries before they have a chance to occur. Research over the years, in fact, has proven that for every dollar invested in injury prevention, businesses see a return of anywhere between $2-$6. Standards and procedures should always be listed somewhere on paper to show that an employer is making the effort of providing a safe environment in the workplace.
Another method is to instill a return-to-work program since, in some cases, accidents are inevitable and bound to happen. These programs are meant to help injured employees get back to work as soon as they can, even if their hours are reduced to help them remain on their feet. There may be many cost benefits relating to these programs that an employer would have never thought of.
Lastly, another option is for an employer to join a PEO, or professional employer organization. This works as a way to help an employer manage workers’ compensation costs and claims. These organizations can help an employer choose workers’ compensation plan coverage and cut premiums, evaluate the safety of a workplace overall, resolve claims efficiently, manage relations with injured employees, and implement a return-to-work program as previously mentioned.
There are many ways to prevent accidents in the workplace and reduce workers’ compensation claims. By preventing accidents, more money can be cycled back into a company and more workers walk away without injuries. This is especially important. If you have been injured in a workplace injury, give us a call. We have the experience with personal injuries that you need to win the compensation you deserve.