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Carrie Thorson

Guide to Lowering Your Workers' Comp Costs

Safety training and good record keeping help keep premiums down

By Carrie Thorson, Reporter, Institutional Investor Newsletters

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.

The official source of Lowering Your Workers' Comp Costs is
the Workers' Compensation Insurance page at Business.com

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Recommended Solution Providers

Lorman Education Services: Workers' Compensation Seminars
Offers workers' compensation training.

Employers Unity: Workers' Compensation Services
Get training on how to reduce workers' compensation costs.

National Seminars Group: Workers' Compensation Seminars
Get training on how to control workers' compensation costs.

PayPro: Injury Reduction Services
Provides injury reduction services and training.

Best Sites to Learn More

Workplace Fairness: Workers Compensation FAQs
Provides FAQs about workers' compensation.

The Hartford: How To Limit Workers' Compensation Costs
Has tips for how to limit workers' compensation costs.

Free Advice: Workers' Compensation FAQs
Provides FAQs about workers' compensation.

AllBusiness: Workers' Compensation Cost Basics
Understand the basics of workers' compensation costs.

International Risk Management Institute: Workers' Compensation Cost Tips
Understand how to manage workers' compensation costs.

Healthcare Savings Chronicle: EDI and Workers' Compensation Cost Reduction
Explains how to use EDI (electronic data interchange) to reduce workers' compensation costs.

Microsoft Small Business Center: Workers' Compensation Cost Control Tips
Explains how to control workers' compensation costs.

Michigan Economic Development: Reducing Workers' Compensation Costs
Gives the basics for managing and reducing worker compensation costs.

Sherman Safety Management: Workers' Compensation Cost Cutting Tips
Learn how to cut workers' compensation costs by avoiding accidents.

Best Blogs and Forums

Free Advice: Accident & Injury Law Forum
Ask others how they lower their worker's compensations costs.

Labor Law Talk: Workers' Compensation Forum
Find out how to lower workers' compensation costs.

Law Guru: Workers' Compensation Forum
Discuss workers' compensation costs.

Lawyers: Workers' Compensation Forum
Learn about workers' compensation costs.



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