claims continue to decline. Understand of course, certain industries still continue to have up ticks in claims and costs. These may vary year to year and industry or even industry segments.
Implementing a risk management plan in your business if you have to pay workers compensation insurance premiums is a great starting point.. In the beginning, utilize the risk management staff at your carrier, the company that writes the workers compensation to help you set up your plan.
As you grow and get larger, it may make sense to assign this to staff and eventually, even hire someone to perform this function. Implement safety procedures which make you a better risk for the carrier. Keep a log and track days without incidents. In addition, take a look at the following to see if it may help you reduce your premiums:
- Start a program to allow workers to get back into the work place faster. Establish a step program which would allow for limited capacity which would gradually increase. Remember that rising rates are a result of benefits paid. The earlier an employee can get back to work, the better for everyone.
- Check on how your payroll is reported. Overtime and bonuses may not have to be factored in to payroll costs which help determine your premium.
- Has your company had claims, is it a particular department or group? Investigate and address these as part of your risk management program and make sure to advise your carrier.
- Check your job classification codes, sometimes they may be classified wrong and raise rates.
- Keep your carrier informed of changes and improvements made to the workplace.
- Schedule annual reviews with your carrier and invite them in to see improvements.
- Challenge your carrier if you feel it necessary. Use industry associations and your state department of insurance as a resource.
Don’t be afraid to review your workers compensation annually with all your other business insurance. Work with your commercial insurance broker and the carrier to make sure your coverage, risk exposure, and premium is where they need to be.