In 2017, U.S. employers spent nearly $162 billion on workplace injuries. However, there’s some good news for employers. There are several ways to save on the cost of workers compensation. Here’s what they are:
Pay Less for Workers Compensation Insurance
There are several ways to decrease the cost of your workers compensation insurance. Firstly, shop around for insurance. Because insurance rates are competitive, you might be able to save some money by talking to several companies before choosing a plan. You should also check with several companies every few years. Competing companies might change their prices to draw new customers. You can also get a lower premium if you measurably reduce the risk of injury for employees. Ask your insurer about safety rewards at the end of the year to see if they’re offered.
Use a Workers Compensation Database
A workers compensation database, or workers compensation claims software, can track and pay claims quickly and easily. Businesses can save nearly 50% by using a workers compensation database to ensure that claims are handled correctly and best practices are being followed. Claims processing software makes it easier to handle and track multiple claims. A claims processing system can also ensure best practices, which can include completing paperwork on time and organizing all of the claims that are filed. Workers comp management software can also help verify coverage, communicate with employees, and keep a daily log of activity.
Put Safety First
While it might seem obvious, many employers fail to put safety first. Ensuring that your employees are working safely by having regular and random safety checks can actually help everyone keep safe practices in mind. You should also have regular safety instruction classes if applicable and resources available and/or posted. This can result in fewer injuries and can even show your employees that you care.
Be Prepared for Workplace Accidents
Employers can do everything right and still have workplace injuries. The next best thing you can do is to be prepared so that you can handle an injury if one occurs. Employers, employees, supervisors, and HR should all have roles and know what to do in the event that someone is hurt at work. You should have emergency supplies on hand and be able to take immediate action to reduce the severity of an injury. Having a procedure in place will ensure that the proper steps are taken and that further injury can be avoided.
Follow Up with Injured Employees
Research has shown that if an employer follows up and keeps in touch with an injured employee, they will be more likely to return to work quickly. If the employee doesn’t hear from anyone, they might feel that no one cares and end up staying home longer than is really necessary. The amount of workers compensation paid will be less the sooner an employee returns to work. Giving injured employees an incentive, such as a return to work program, can also help.
Similar to return to work programs, incentive programs can be offered to employees to help prevent accidents and injuries. This can help new employees learn safety protocols and older employees refresh their memories.
Check for Discounts in Your State
Some states will offer workers compensation discounts if an employer promotes safety in the workplace. An example of this is a discount for an employer who offers a drug-free workplace. Programs such as these can save employers money, so check to see what your state offers.
Classify Employees Correctly
Oftentimes, an employer spends more on workers compensation than they should due to a clerical error. You should make sure that every employee is classified correctly in any form. Someone who works on a construction site wouldn’t have the same classification as someone who works in the construction office. The office worker is less likely to be injured and should cost less.
If you’re looking for a way to reduce the cost of workers compensation expenses, try some of these tips. Workers compensation is necessary for most businesses, but the cost, as well as the number of injuries, can go down if you shop around for insurance and discounts, use a workers compensation database and fix any clerical errors, put safety first, and implement some incentive programs.