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How Can You Control Workers' Compensation Costs?

The Impact on Your Bottom Line

Workers' compensation claims impact your company’s bottom line and quickly become very expensive, especially for small businesses. Every time a workers’ compensation claim is made, direct costs are incurred, including: medical bills, time-off wages, and permanent disability benefits — plus, insurance premium impacts for three years.

Direct costs for these claims come straight out of your profits, but indirect costs are even more expensive. A recent OSHA study proved that the indirect costs of a workers' compensation claim can be 4.5 times greater than the direct costs. To calculate indirect cost, consider these areas:

  • Production delays/work stoppage
  • Accident investigation
  • OSHA penalties
  • Equipment damage
  • Hiring and training
  • Clean-up and rework
  • Legal fees
  • Increased stress
  • Decreased morale and productivity
  • Delivery delays and unhappy customers

Reduce Your Risks

Your most effective line of defense is to take preventative action to provide a safe environment and institute a strong safety program. Make safety a matter of pride, not only for your company but for your employees. We have developed specialized tools and training courses to help you create this safe environment. Here are some of the ways we can help you prevent workers' compensation claims and save you money.

1. Create a Safe Environment

  • Safety training – we have a full-time professional safety instructor and online training courses on various subjects.
  • Safety meetings – we’ll help you organize weekly meetings to keep safety on workers’ minds. We set safety objectives and goals, and work with you to offer incentives when appropriate.
  • Safety walk – we’ll walk through your worksite and interview employees to identify potential areas of risk.
  • Additionally, we will attend OSHA hearings on your behalf, if necessary.

2. Get the Right Carriers

Some insurance carriers do not offer insurance for a particular industry or size of employer, or, they charge more for that particular coverage. Plus, costs vary between insurance carriers due to discounts, dividends and incentive programs. We shop various carriers for each client to find the highest discounts possible. We make sure you get the most competitive quote.

3. Properly Classify Your Employees

Proper classification of employees makes sure only those employees who are at high risk of injury, like those in manufacturing or warehousing, are classified. Other workers, like clerical, management or sales, are not as susceptible to injury. We can classify your employees to reflect premiums that keep your costs down.

4. Mandatory Return to Work Policies

Getting employees back to work early can drastically minimize claims. Engaging us in the return to work decisions is wise for several reasons. You can: avoid conflicts with the supervisor, consider nontraditional alternatives, and make it known that workplace injuries are not an excuse for staying off the job. We offer various tactics to get employees back to work as soon as possible:

  • Bring them back on light duty work
  • Put them in a temporary management or clerical role
  • Make necessary accommodations
  • Change their work location
  • Assign workers to local nonprofits in a clerical role
  • Allow the employee to work at home, if possible

Take Action Today to Prevent Tomorrow’s Accident!

Call us to discuss how we can protect your company from the huge losses and negative impact of an on-the job injury.

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