Many companies often feel powerless when it comes to trying to control the cost of workers compensation insurance, often referred to as workers comp. Since workers comp is a state-mandated program meaning that you are required by law to have the coverage it is often assumed by policy owners that there is nothing they can do to safely reduce the cost of this expense. However, this is not the case. In fact, there are many things you can do within your company to help reduce risk, which in turn can help lower your premium.
Partnering with the right insurance carrier is an important step to reducing your risk. Your carrier can help give you many different ideas to help guide your company towards a safer, and therefore more cost-effective, workplace environment. If you have been having problems with employee injuries and rising insurance costs, take a step back and start fresh. Develop an effective loss control program from the top down and ensure all of your employees understand and abide by it. In particular, focus on your newer employees. A large percentage of workplace injuries occur fairly soon after the employee is hired. This could be for a variety of reasons, but the bottom line is that these employees need extra time and attention to ensure they understand what is expected of them. Finally, consider quarterly claims reviews to analyze events and any developing patterns.