3 Ways to Lower Your Workers’ Compensation Costs

Workers’ compensation is a necessity in the workforce, particularly in high-risk professions such as construction, but it doesn’t have to be expensive or hard to deal with. There are ways that you can lower your workers’ compensation insurance premiums that aren’t difficult to implement.

It’s not just about the direct costs you’re taking in as a business owner; it’s also about the indirect costs as well, from training new employees to losing productivity. On-the-job accidents and injuries can often go far past what one pays for in insurance. By taking steps to prevent injuries and manage claims, you can avoid future premium hikes. Here’s some ways to lower your workers’ compensation costs.

1. Having a Safety Net in Place

Implementing a safety program will help identify problematic areas and find solutions for them by effectively eliminating workplace hazards. A 2014 study done by Safety and Health magazine titled “The ROI of Safety” found that the return on investments like these amounted between $2 and $6. Many states even require businesses to have a written safety program in place. If you want to have a safety program for your business, here’s some tips to get you started:

  • Hire a third-party consultant.
  • Use an industry-specific template.
  • Work with your workers’ compensation insurance carrier.
  • Utilize Occupational Safety and Health Administration’s (OSHA) resources.

2. Getting People Back to Work

Even with a safety program in place, accidents can still happen. It’s important to prepare for them. A return-to-work program can directly benefit a workers’ compensation claim. The longer a claim stays open, the more it costs, so the quicker an employee gets back to work, the better. Even if it’s on a modified basis, it’s still better than the employee being completely out of work. It will help you effectively maintain a relationship with the injured employee while they are out of work and when they return.

3. Utilizing a PEO

A professional employer organization can help. They can manage your workers’ compensation claims and costs, while navigating the waters of owning your own construction business. A good PEO will make your company feel safe again as a whole. A PEO can help:

  • Choose your workers’ comp coverage
  • Evaluate the safety of your workplace and design a safety program that keeps your employees safe
  • Resolve claims efficiently
  • Maintain relationships with injured employees
  • Implement an effective return-to-work program

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.