We frequently hear the complaint that Workers Comp premiums are too high. The fact that it is legally necessary in all but one state leaves only one option: Find ways to reduce those premiums.
The first thing you want to do is to talk to your insurance professional to ensure that you are being billed appropriately.
You want to see to it that your employees are classified properly. The premiums vary, depending on their positions in your business. If they have been promoted or moved to other positions, you want to ensure that this information was received by the insurance company.
Rates are based partly on the amount of benefits paid, so the earlier an employee gets back to work, the lower the benefits paid. Work to get your injured employees back to work quickly. If you need to, you can set up a temporary job for them which is not physically taxing and allows the employee to come back to work on “light duty.”
Start a safety program which is created to keep your insured employees safe. Make sure that the offices are ergonomically correct. If they use industrial machines and equipment, make sure they wear safety glasses and helmets or whatever protective garb is recommended. Require employees who work in a warehouse or delivery truck to wear back braces and make sure they get training in correct lifting.
Whatever you do, you want to keep your carrier informed of safety changes and improvements made to the workplace.
Review your workers compensation annually when you review your other business insurance. Work with your licensed insurance professional and workers comp carrier to make sure your coverage, risk exposure, and premium is where they should be.