Resources for Workers' Compensation

Workers' compensation insurance covers employees who are injured or become sick during work activities. Most states require businesses to have coverage. Because each state has different policies and procedures, it's important to investigate requirements in every state in which your employees live, work, or travel.

Some states require you to buy coverage through state-operated funds, while others allow you to buy either from state funds or from independent operators. Workers' comp rates are rising faster than those for any other insurance coverage, but there are ways to keep your costs down:

1. Shop around to find the best coverage for your company
2. Focus on prevention to keep premiums down
3. Consider bringing in an outside firm to audit your coverage for savings

Find your state(s) requirements

Requirements vary by state, so make sure you investigate each state where you have employees.

Contact providers

Some states require you to obtain coverage through their state-operated funds, but others allow you to choose your coverage. If your state allows you to choose, ask your other insurance carriers if they offer workers' comp and whether they provide any package deals.

Consider a workers' comp audit

Auditors will check your insurance bills against your internal information to find areas in which you may have been overcharged.

Implement workplace-safety policies and procedures

When it comes to workers' comp, prevention is the best medicine. Establish safety programs and drug-free workplace policies..
Occupational Safety & Health Administration (OSHA) and the National Institute for Occupational Safety and Health (NIOSH) to find information about particular workplace issues, whether it's hazardous substances that your employees regularly come in contact with or health issues that commonly affect your industry, such as carpal-tunnel syndrome.

• Check with your trade or business association to see if you can get a better rate through them.
• You might have "employees" that you're not aware of. Investigate any uninsured contractors or subcontractors that you might be responsible for.
• Ask your insurance company if you can pay as you go, rather than pay in one lump sum. More and more insurance companies are offering this service.
• Check out discounts for "good behavior." Some carriers offer discounts of 5% to 15% if you have few, small, or no claims in a given year, or if you've implemented workplace safety or drug-free workplace programs and policies.