6 ways you can help control your workers’ compensation costs
Workers’ compensation and its associated expenses can leave a large dent in your budget. Not only are there the direct costs you pay in insurance premiums, but there are also the indirect costs of on-the-job injuries and work-related illnesses. For instance, when there has been an incident, often employee morale suffers and productivity decreases. Time and resources may be spent on training an existing employee, or hiring another, to perform the duties of the injured employee until they can return to work.
Thankfully, there are steps you can take to lessen the chances of accidents occurring and mitigating their impact on your workforce as well as your bottom line.
Below, our team of dedicated insurance professionals has compiled a quick list of things to keep in mind that can help control workers’ compensation costs for your business.
6 ways to control costs:
- Report injuries immediately. If an injury is not treated or addressed immediately after it occurs, it tends to get worse — not better — over time without treatment. Report injuries to your insurance carrier as soon as you become aware of them so they can start to manage the claim. Be sure your employees understand your organization’s process for reporting claims and that they need to report all injuries to you as soon as they occur.
- Stay on top of claims management. The longer a claim takes to resolve, the costlier it can be. Keep abreast of the status of open claims and be sure to provide your claims adjuster with any additional information they need in a timely manner. Check in with your injured worker(s) on a regular basis to show them they are missed and a value to your organization.
- Develop a strong return-to-work program. With a well-designed return-to-work program, you limit the number of workdays lost to accidents and illnesses. These programs typically help the employee maintain ties to the workplace and lowers the chance the employee will not return. By establishing a strong return-to-work program, you can help reduce direct and indirect costs, speed healing, reduce litigation risk, and improve employee morale and engagement. Coordinate with your insurance carrier who will have resources to assist you in this process and ensure your program complies with the regulations in place for your state.
- Create a safety-first culture for your business. Dedicate a specific time each week to reinforce the importance of safety with your employees. Incorporate different safety trainings that reinforce best practices for you and your employees to follow during the course of your workday. Businesses who actively engage their work group in safety discussions tend to have fewer incidents, resulting in lower claims and less turnover. Fostering a safety-first culture also helps build trust with your employees and shows you value them, which may encourage greater diligence — both in their work and prompt injury reporting.
- Make hiring and onboarding training a priority. Ensuring that new employees are committed to safety starts with hiring people who already value those principles. Thorough background checks can offer insight into whether a potential employee may be an accident waiting to happen. Providing proper safety training when an employee starts a new job or new job tasks helps prevent injuries in the first place. Develop onboarding materials that provides a new employee with resources they can reference throughout their tenure.
- Take advantage of risk management services provided by your insurance carrier and/or broker. For example, when you have an insurance policy curated by Marsh, you may have access to the following benefits:
- Delivery safety plans and business loss prevention advice to help your team(s) avoid setbacks
- No-cost driver safety training with Impact Solutions*
- 24/7 nurse hotline, including after-hours triage, helps provide guidance on managing injuries to reduce unnecessary claims and emergency room visits for non-emergency situations
- Customizable and affordable healthcare plans can help drive down workers’ compensation claims and costs
While keeping your workers' compensation costs down may seem like a losing battle, it does not have to be. By taking the actions above, you can help ease your financial burden and create a safer workplace. For more information, contact your regional account team.
*Cost of safety training with Impact Solutions varies based on policy specific details and is a benefit made available by Protective Insurance Company to their Insureds. *