Workers’ compensation can be both confusing and costly if you are not familiar with the process. However, employers can influence the outcome of a workers’ compensation issue and lower their overall costs if they are prepared.
Workers’ Compensation management can be divided into three main categories that can reduce WC costs in your company.
Workplace Safety Means Fewer Claims
The simplest way to reduce your costs is to reduce the number of claims. Establishing a culture of safety your company is essential. To be successful, an ongoing commitment to safety must be made. Such a commitment must be supported by management and given the necessary resources to succeed.
Developing comprehensive safety policies and OSHA compliance will both reduce your number of claims and help you avoid costly fines.
Mitigate Loss After an Injury
Even with all the right programs in place, accidents can happen. When a workplace incident occurs how you respond can greatly influence the outcome of the claim. Prompt claim reporting is essential to keeping costs down. Have a designated injury management coordinator to follow through with open claims, and work with both employees and medical personnel to facilitate the timely recovery.
The longer an employee is out of work the more expensive their claim will be. Return to Work programs that allow injured employees to come back to work at a limited capacity during the recovery process, are one of the most effective tools business owners have to reduce the severity of a claim.
Managing Your Mod
Insurers use what is known as an experience modification factor, or mod, to calculate the premiums you pay for workers’ compensation coverage. By managing your exposures and promoting safety it is possible to manage your mod and decrease your premium rates.
Like a good safety program, controlling your mod is an ongoing process. To reap the benefits of lower premiums you will have to keep in regular contact with your insurance provider to ensure they have the most accurate data to use in their calculations.
Call ERM Insurance at (949) 222-0444 to learn more about how to reduce your Workers’ Compensation costs.