4 Ways to Keep Workers’ Compensation Costs Under Control
Workers’ compensation is one of the coverages for employers that can impact your entire organization. The end goal for every business is to provide a safe, risk-free environment for the well-being of both employees and the long-term viability of your organization. Without planning for proper workers’ compensation costs, you’re at risk for inducing a major setback to the business should a work-related injury occur.
Four Questions to Ask Yourself to Help Keep Workers’ Compensation Costs Under Control:
1. Are your employees classified correctly?
Technology and adaptations to the current marketplace change what your employees are doing today compared to what they’ve done in the past. Clarifying the current responsibilities and duties within your job descriptions can help place your employees in the correct classification and prevent you from carrying improper costs going forward. Are your employees classified correctly?
2. Is your safety program as effective as it should be?
A good chunk of how much you pay for workers’ compensation depends upon the frequency of injury occurring in your workplace. Just like other areas of your organization, reviewing and improving your safety program not only presents the opportunity to properly train employees, but it can also allow you to set a measurable bar for expectations for all employees and leadership. Does your current safety program yield the results you need?
3. Do you know the coverage requirements for the states you operate in?
Workers’ compensation regulations differ among states. Knowing what the laws are before you begin work in a new state can make a huge difference in whether or not you expand to that state. Understanding each state’s regulations can help you make sure you are in compliance with local laws and correctly budget workers’ compensation costs. Are you in compliance? Are your costs accurate?
4. Do you have a set process in place when an injury occurs?
The length of a claim plays a heavy influence on the cost. As soon as an incident occurs, it’s best to quickly and accurately report it. The first initial accident report should be sent within 24 hours to your insurer. As with anything, detail is vital. Provide any and all information in regards to the incident with the report. If applicable, you can also include pictures of where the injury occurred. What is your process? Are you confident your leadership knows your process?
Still stumped on how to answer one or more of the questions above? At Snellings Walters, we understand that surviving in today’s business world means properly managing rapidly changing risks. We’d love to discuss your unique circumstances and see if we can get better together. Contact us here to get started.