5 Strategies for Reducing Workers’ Comp Costs

Workers’ compensation insurance is one of the top expenses a business faces, with small businesses experiencing some of the most difficulty managing costs. This insurance addresses the medical bills, lost wages, and funds needed to resolve permanent injuries or death benefits, and all states have mandated a certain amount of coverage. The costs associated with Dublin Workers’ Comp Insurance will vary according to the size of the company, prior accident claims, and the scope of the industry. But, regardless of these factors, there are several ways a company can lower its workers’ comp costs.

How Much Does Workers Compensation Insurance Cost for a Small Business?

While it is difficult to give you an exact estimate on the cost of a comprehensive insurance plan because of the variations within plans, the average premiums across the country can range from five percent to 40% of total payroll costs. As this expense cuts into the budget, these five suggestions may be worth looking into for reducing your cost.

  1. Prioritize safety. By having a written safety plan, you get all your employees on the same page with safe practices and reduced risk environments. Part of your plan should include disciplinary or reward programs that make employees accountable for actions that either break or support the safety rules.
  2. Document incidents. As soon as an injury is reported, fill out the accident report and include photographs, witness testimony, and as many details as you can. Send it to the insurance company within 24 hours to have the claims handled as quickly as possible. Random drug testing can help reduce the risk of drug-related accidents.
  3. Prevent fraud. Fraudulent claims can increase your premiums, as your safety numbers and risks go up each time an incident is filed. Be on the lookout for fraud, and thoroughly investigating situations that seem abnormal. Look for repeat claims from the same employees or injuries that seem to be ignored when away from the work environment.
  4. Consider third party assistance. Small businesses may be able to save money by outsourcing some functions to a professional employer organization. By becoming a part of a larger organization, premiums are often much lower as there is greater buying power on account of the organization as a whole.
  5. Conduct a safety audit. By having an audit done, you can pinpoint the greatest areas of safety concern for the company. Proactively addressing these risks through increased training or changing processes and the environment can reduce the risk of having an accident and opening new claims.

Do I Need Workers Comp Insurance for My Business?

Because of state and federal laws, you may be required to provide some injury coverage for your employees. Speak with a licensed agency to determine how much coverage you need to provide and how to identify which employees are eligible.

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.