In nearly every state, workers compensation coverage is required by law. It not only protects your business against employee lawsuits resulting from injuries, but it also pays for the employee’s medical expenses and a percentage of lost wages.
How To Keep Costs Down
Workers compensation insurance can be quite costly if you don’t manage your risks properly. The good news is that there are several strategies to reduce those risks.
- Develop a Safety Plan – The best way to keep costs down is to prevent accidents from happening. Assign a safety committee to identify all risks and hazards and then create a plan to mitigate those risks. Train all employees on the procedures and conduct safety drills and audits to ensure everyone is following instructions.
- Implement Best Practices – Your insurance agent will reward you for implementing management best practices. These can include such things as ensuring all employees know how to report an injury, where to find safety kits and who is trained onsite to handle small emergencies.
- Create Safety Rewards – Small incentives can go a long way in getting employees to buy in to the company’s safety commitment. For example, having a pizza party for every month or quarter without a safety incident can be effective.
Talk with your insurance agent about the workers compensation strategies you have implemented to reduce costs.