Did you know that workers’ compensation insurance is mandatory for most business owners across the US? Although there are a few exemptions, this essential coverage is designed to protect your workers if they become ill or injured following an accident on the job. If their injury is covered, they can be eligible to receive funds to pay for any related medical costs, lost wages, and in extreme cases, death benefits as well. Anything from carpal tunnel syndrome to broken bones and pulled muscles can be covered under workers’ comp insurance. This important insurance coverage works to not only protect your employees but your bottom line as well because it prevents you from having to pay out-of-pocket for injuries or legal fees. But is there a way to help reduce the costs associated with workers’ comp coverage?
How Can My Business Reduce Workers’ Compensation Insurance Costs?
In the state of Minnesota, workers’ comp insurance is mandatory. So, whether you have five employees or 500, you will need to carry a comprehensive business insurance policy that includes workers’ comp coverage. However, the rates your business pays for coverage can vary greatly from other local businesses. This is because workers’ comp rates are determined by industry type and the likelihood that your employees may become injured at work. So, if you are a roofing contractor, you can expect to pay a higher workers’ compensation rate than your local florist.
While these factors cannot be changed, there are certain steps you can take a business owner to help lower your workers’ comp costs.
1. Implement a Safety Program
Many states require employers to draft and train staff using a written safety program. Implementing a safety program can not only help to prevent workplace accidents, but it also demonstrates to insurance companies that you are serious about creating a culture of safety within your company. To become eligible for possible insurance discounts, business owners should make sure that they are documenting all staff safety training hours, updates and require employees to sign off stating they have read and received all safety materials provided.
2. Establish a Return-to-Work Program
You’ve already invested lots of time and money into training your staff and don’t want to lose them after an injury. Establishing a return-to-work program can help your company to retain your most valuable team members and reduce the cost of workers’ compensation claims—which is often the costliest aspect of this type of coverage. With a return-to-work program in place, your staff members can start working as soon as they are deemed medically able, even if they are working in a modified role or part-time hours.
3. Promote a Substance-Free Workplace
If any of your employees use alcohol or drugs while performing work duties, they will eventually cause injuries to themselves and others. Research shows that employees who are under the influence of drugs or alcohol cost employers twice as much in workers’ compensation and medical costs than their sober peers. Requiring a pre-employment drug testing is one of the most efficient ways to keep your business a drug-free zone.
Work with an Independent Agency and Save
At Great Lakes Insurance Agency, we are proud to work with multiple insurance providers to help you get the most comprehensive policy at an affordable price. Contact us today to learn more, and be sure to request a free workers’ comp insurance quote!