In the past few decades, workplace safety has become an issue, and one that all are aware of. As a result, overall workers compensation claims have gone down drastically in the past few decades.
That said, we must point out that there are some industries where they have gone down less than others
If you want to lower your workers compensation premiums, there are several paths you could go down.
First, initiate a risk management plan in your business. Start out using your insurance carrier’s risk management staff. They are the people who understand the industry from that side. Implementing safety procedures lower your risk factors for the carrier, and this step could save much money.
As you grow it is likely that you can delegate your own staff to take over the tasks involved with that risk management plan. You might even get to a point where you can hire someone specifically for that task.
Has your company had claims? If so, are those claims in a particular department? Find out why and address them as part of your risk management program. Then advise your carrier that you are working in that direction.
Find out how your payroll is reported. Is overtime factored into it? Are bonuses? This could be a driver of your premiums.
Additionally, you might look into starting a program to assist workers to get back into the workplace more quickly, which mitigates the losses your carrier is paying, and losses are what drive premiums.
Normally, a program where your workers can come back gradually and in a limited capacity which will increase step-by-step works best.
Check your job classification codes and insure that they are classified correctly. Sometimes the wrong classification can change your rates.
Keep your carrier informed of all changes and improvements made to the workplace.
Remember to review your workers compensation annually along with all of your other business insurance. Work closely with your licensed insurance professional and your carrier to make sure your risk exposure, coverage, and premium is where they need to be.