When it comes to Workers Compensation Costs, it should be no surprise that having a Strong Safety Culture embedded in your business model can create a proactive environment that prevents accidents and injuries. This can include training sessions, ongoing safety meetings, and positive incentives for safe behavior.
However here are examples of 5 other factors that affect Workers Compensation. Implementing some of these control strategies will help reduce costs and therefore have a significant impact on company profits.
- Industry and Occupation: Certain industries, such as manufacturing and construction, have inherently higher risks for workplace injuries as compared to office environments.
- CONTROL: Utilizing industry specific safety protocols and training as well as investing in proper protective equipment can reduce this risk.
- Claim Frequency: The frequency of filed claims has a direct impact on your Workers Compensation costs.
- CONTROL: Promoting a safety-conscious culture, including actively reporting and investigating near misses will help reduce workplace accidents.
- Severity of Claims: Serious injuries can lead to long-term disabilities which substantially increases Workers Compensation costs.
- CONTROL: Implementing a proactive and timely claims management process ensures the worker receives appropriate care as needed. When combined with a robust return-to-work program, this process creates the best path towards a worker’s recovery.
- Return-to-Work Programs: Claim duration and costs are directly dependent on a worker’s return-to-work date.
- CONTROL: By having a robust and flexible return-to-work policy that accommodates an employee’s restrictions, you can accelerate the return-to-work date and ensure that the employee makes a smooth transition back into the workforce.
- Workers Compensation Insurance Provider: Both you, as the employer, and the Workers Comp Insurance Provider have a vested interest in reducing the cost and duration of a Workers Compensation claim.
- CONTROL: By working closely with the claim’s adjuster, providing timely information, and monitoring the progress of a claim, you can reduce your overall claims costs.
By addressing these factors–implementing proactive measures to reduce workplace injuries and effectively managing claims–employers can take control of their workers’ compensation costs and create a safer, more productive work environment.
Rue Insurance has a comprehensive safety program led by our embedded Safety and Loss Control Consultant. If you want assistance in upgrading your safety program, or are in need of a jobsite loss control safety inspection, give us a call. We have experience in many trainings including OSHA 10 Hour and OSHA 30 Hour trainings.
