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How Can Small Businesses Save Money on Workers’ Comp?

workers comp

Employees are attracted to companies that offer workers’ compensation insurance. Although companies are required to obtain workers’ compensation insurance to protect themselves and their employees, it would be great if the rates were lower than usual.

It’s particularly true for small businesses. Insurance costs can be costly, and a few saved dollars here and there would still make a difference. As long as it does not compromise workers’ safety (like omitting important aspects of the coverage), it is achievable to cut costs slightly for workers’ comp.

Is it possible? Yes, your company can save on workers’ comp by employing a few innovative ways to get workers’ compensation insurance. First things first, though:

Workers’ Compensation Insurance, Briefly Explained

Having workers’ compensation insurance is essential if your business will remain competitive. Workers’ compensation insurance provides protection for your employees, which means they are fully insured in case of an accident. It can also cover some of the potential losses.

Comp costs depend on the industry to which your business belongs. The higher the risk at work, the higher the insurance premium. Workers’ compensation insurance helps safeguard your small business and employees in unforeseen situations like illness or injury. It could also help prevent your small business from going bankrupt or recovering from a substantial financial loss due to accidents in the workplace.

How to Save on Workers’ Comp Insurance

These few steps could save you a good amount each month on workers’ comp while still keeping your business and employees protected.

  • Make sure job descriptions, duties, and responsibilities are all clearcut.

At times, workplace accidents happen when a person is not part of their job description and endanger them in the process. Make sure your employees know what their duties are and stay within the scope of their positions. By doing so, your employees will avoid injuries stemming from doing unrelated tasks. A janitor should not be doing window glass cleaning on the 80-story building!

  • Encourage alcohol and drug-free workplace.

Alcohol and drugs impair the mind’s ability to make decisions and weaken the body. Before, during, and after work, employees should refrain from using any substance that could affect their judgment and reduce their productivity. It’s their life, indeed, but they also have to think of the company’s welfare if they keep on coming to work under the effects of drugs and alcohol.

  • Implement a reliable return-to-work program. 

Returning to work after suffering from an injury or illness is not the easiest. A solid return-to-work program outlines all the necessary precautions and tasks a returning employee must follow as he eases back to his old work routine (or adjusts to something new). Doing so lessens the costs the insurance passes on to the company. When a return-to-work program succeeds, fewer claims will be on workers’ comp.

  • Make the workplace a safe place, physically and virtually. 

While there are training programs to enforce safety in the workplace, keeping the same workplace safe from cyber threats and attacks is another story. Protect the data, the company, and your employees from the repercussions of cybercrimes through cyber liability insurance. Ensure employees are well-versed in keeping their private information from the public on the internet and not unknowingly link information that would wipe out your business’ reputation.

  • Compare different insurance company prices for monthly premiums before deciding to use them in the company. Some insurance companies are good enough at first glance, but reading the fine print of these insurance products could save you a good amount. Compare and contrast their benefits, and you get the one that fits your employees’ needs (and your budget). Choose insurance that addresses most of your employees’ concerns and whose values parallel your company.

Our Final Say

Workers’ compensation insurance can take quite a financial toll on small businesses. With these steps, you might not immediately see your savings spike up, but gradually, you’ll see changes in the amount you are spending for workers comp. This change means more to pay to help the business grow and prosper. 

About Rodrian Insurance, Affiliate of Robertson Ryan Insurance

Rodrian Insurance, Affiliate of Robertson Ryan Insurance specializes in giving you insurance solutions that perfectly match your business and personal life. We provide insurance options that offer excellent coverage while remaining within your budget, based on a thorough understanding and assessment of your needs, circumstances, and financial capability. Find out more about how Rodrian Insurance, Affiliate of Robertson Ryan Insurance can fulfill your insurance needs. Call or text us at 262-781-4750.or email us at info@rodrian.com.

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