Workers' Compensation Insurance

Argonaut Group Inc.

Hih Insurance Limited

Zenith National Insurance Corporation

Guide to Lowering Your Workers' Comp Costs

Safety training and good record keeping help keep premiums down
By Carrie Thorson

Workers' compensation is a large expense for small businesses. Compensation for injured employees includes medical bills, payments for lost time and damages for any permanent injuries. Every state requires that employers provide compensation for any and all work-related injuries.

A lower accident rate means fewer workers' comp claims and lower costs. It starts with these key actions:

1. Uphold all workplace safety standards
2. Thoroughly train employees on safety issues
3. Be diligent about your policy coverage

Action Steps

The best contacts and resources to help you get it done

Incorporate ergonomics into the workplace Most workplace injuries today are cumulative trauma disorders (CTDs), which are injuries that result from the stress of repetitive motion. Carpal Tunnel Syndrome is a common office-related CTD. Ergonomics, the study of workplace equipment to increase productivity by reducing injury and discomfort, reduces instances of CTDs.

I recommend:  Find ergonomic tips for your office on the AME Info site. Future Industrial Technologies offers ergonomics training programs.

Train your employees to make safety a priority As obvious as it may sound, poorly trained employees account for all kinds of workplace injuries. Get employees involved and require that all workers complete safety training courses. Establish a written safety policy that is distributed to all employees.

I recommend:  Safety training programs are available from the Painters and Allied Trades Labor Management Cooperation Initiative. Business and Legal Reports offers an audio conference training CD.

Verify workplace safety requirements The number one way to cut workers' comp costs is to lower the incident rate. Get rid of clutter to prevent slips and falls. Make sure all chemicals or hazardous substances are stored in proper containers. In a job that involves any sort of physical labor, ensure that all workers receive instruction about their tasks. Seemingly obvious safety precautions should be rechecked on a regular basis for maximum prevention.

I recommend:  NYSIF contains a safety checklist for your workplace.

Keep meticulous records Require all employees to immediately report all incidents. Have a functioning method of managing claims. Once you have a solid compensation program in place, speedy implementation will result in lower costs.

I recommend:  Software and other tools are available for tracking reports and minimizing company costs. System Interface Consultants has a page full of resources. Occupational Hazards has ways to reduce workers' comp costs.

Tips & Tactics

Helpful advice for making the most of this Guide

• Because there is always a possibility of fraud, require medical records and other secondary forms of injury verification. Drug tests are common requirements for workers claiming compensation.
• Some states have organizations that lobby for compensation reform. State-specific resources may be available for your company.
• Aside from incident prevention and efficient program execution, you also can save money by focusing on quickly getting injured workers back to work. Take an interest in their health and recovery, and support their early return.
• A positive attitude about safety will ease the implementation of new policies and programs.