A good employer is always on the lookout on tips to cut business expenses, and a reduction of insurance costs is one of these tips. Manage your auto, commercial general liability, property, and even workers' compensation benefit rates to reduce your overheads. Here are a few specific tips to help manage workers' compensation rates.
Craft and Enforce a Safety Policy
Your claims history is one of the most significant factors during rate determination. Insurance companies look to the past to predict the future. If you have numerous claims in the past, the rationale is that you are likely to file numerous claims in the future too.
Reduce the number of injuries in your workplace to limit your claims. Come up with a good safety policy and enforce it to the letter. For example, make sure your drivers don't drive while impaired and ensure all your workplaces are well-lit. Investigate all injuries that occur to prevent their reoccurrences.
Encourage Employee Fitness
Employees who are physically fit and healthy are less likely to incur workplace injuries than employees who are out of shape. For example, an out-of-shape employee is more likely to slip and fall than a physically fit employee. Here are a few ways to encourage physical fitness in employees:
- Encourage employees to sign up for gym memberships; gym vouchers can help here.
- Provide access to programs to help people quit smoking since smoking interferes with health.
- Provide parking for bicycles so your employees can ride to work.
- Provide healthy snacks.
- Host events that encourage physical fitness.
- Provide adequate breaks.
Encourage your employees to be physically fit, and you will reap the reward when the rate of injuries drops.
Ensure Proper Classification of Workers
Some job descriptions are inherently dangerous than others. For example, a welder or woodworker is more likely to get injured in their workplace than an accountant or a secretary. Insurance companies know this fact and charge different rates for different work classifications.
Ensure that your employees have the right classifications so you don't overpay your premiums. Otherwise, your office clerk might attract the rates of a painter because you failed to ensure the correct classification.
Have a Return-to-Work Program
The more an injured employee stays out of work, the more the insurance company has to pay as workers' compensation benefits. The more your insurer spends on your employees, the more your rates will rise. You can protect your inexpensive rates if you can help your injured employees heal and get back to work as soon as possible.
Help injury victims get good medical care, retrain the injury victims, and help them reintegrate into the workplace. Make your workplace comfortable for your employees and improve employer-employee relationships.
Report the Right Payroll
Apart from your claims history, your payroll is also a critical factor in rate determination. After all, wage benefits form a huge part of workers' compensation benefits. Thus, a high payroll attracts high premiums, and the reverse is also true.
Fortunately, not every income or benefit your employees get from you must go on the payroll that your insurer uses to calculate your premiums. If your employees get tips, meal benefits, and lodging benefits should not appear on the payroll; ensure that this is the case.
Ensure Your Policy Is Up to Date
A typical workplace evolves all the time; what was true yesteryear is not necessarily true this year. Employees leave, employees get transfers to different sections, and pay cuts occur - all these things affect workers' compensation insurance rates. Make sure your insurer has up-to-date information so they can determine your true rates.
Contact Alliance Business & Commercial Insurance Services for further information on how to enjoy good rates for your workers' compensation coverage. We can also help you identify the best coverage for your business.