One of the biggest expenses for many employers is their workers' compensation insurance premiums. Whether you're already struggling with the cost and want to reduce it or you're being proactive and want to avoid a costly increase, there are some steps that you can take. Understanding how to moderate your workers' compensation insurance premiums can save your business significantly over time. Here are some of the things that you need to know.
Prioritize Responsible Hiring Practices
First and foremost, you should prioritize responsible hiring practices to help moderate your workers' compensation costs. By instituting a pre-employment physical exam and drug test, you can reduce the risk of claims due to health conditions, physical limitations, and substance abuse. These are common causes of workplace injuries, so reducing the risks of these problems can help you moderate your workers' compensation premiums.
Institute Safety Procedures
A safe workplace has fewer accidents, so make sure that your business has sound safety procedures in place as well. Requiring the right protective gear, mandating safe practices in every department, and reviewing your company's policies and procedures on a regular basis will help ensure that your workers stay safe and reduce the risk of injuries.
Establish A Work Return Protocol
The sooner you can accommodate an injured employee's return to work, the less money you'll be paying out in those associated claims. The lower your claim payments, the better your long-term workers' compensation premiums will be. That's why it's important to have a protocol in place to make accommodations and adjustments for injured employees so that they can return to work as soon as possible. That way, you can close out workers' compensation claims and minimize the payout that affects your premiums in the future.
Moderate Your Payroll
While it might be tempting to increase your staffing sometimes to make things run faster or more effectively, it's important to remember that your workers' compensation insurance premiums are partially based upon your company's total payroll. That means that the lower your payroll, the lower your premiums. While you certainly don't want to cut your staffing shorter than you need for standard operation, it's in your best interest to avoid superfluous positions or added salary expenses when they aren't absolutely necessary.
Workers' compensation insurance is an essential and important investment for every business. Not only does it protect your employees, but it also protects your company. With these tips, you can get the benefit of the right workers' compensation coverage and still moderate your company's associated costs.
Contact a company like Tucker Insurance Agency to learn more.