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Workers Compensation Insurance
Spiraling Costs? Four Tips to Tame Them

Call 1‑888‑276‑4426 today for a FREE Workers Compensation Insurance Assessment.

As an employer, you have a legal responsibility to maintain a safe workplace for your employees. However, even when every reasonable safety measure has been taken, workplace accidents and illnesses can occur. That's where workers compensation insurance comes in.

Most businesses are required by state law to buy workers compensation insurance. It covers medical care and rehabilitation as well as compensation for lost income to employees hurt in workplace accidents and those who develop work-related illnesses. It also provides death benefits to surviving spouses and dependents. In addition, a policy protects employers by providing liability insurance for lawsuits filed by injured employees. A third, optional element – employment practices liability insurance – covers lawsuits based on discrimination, sexual harassment or similar claims.

When you purchase workers compensation insurance or renew your policy, it's a good idea to check with your state's department of insurance or insurance commissioner's office to find out exactly what coverage you need.

Staying abreast of what's required is especially important now, since many businesses are pressuring their state governments to reform workers compensation as the cost of premiums rises.

A 2004 survey by the National Federation of Independent Business showed that small-business owners rated issues related to workers compensation as the third biggest problem they faced.*

Increased medical costs, fraudulent injury claims and other factors drive up workers compensation premiums, but you may have some control over how much you pay. The following tips can help.

1. Maintain a good safety record. Be sure to follow Occupational Safety and Health Administration (OSHA) guidelines related to your business, and consider creating an employee safety manual or safety training program. Information about the number of claims you file, their total cost and the size of your business are collected by a rating organization and used to calculate an experience modification factor ("mod") that affects your premium.
   
   
2. Review your company's "mod" worksheet. The process of calculating the mod is complex, so errors may occur. Check industry classification codes, payroll and losses. Your insurance carrier can provide the most recent worksheet.
   
   
3. Ensure that all jobs are properly classified. Insurance agencies give jobs different classification ratings depending on the degree of injury risk.
   
   
4. Get injured workers back to work sooner. You might set up a plan that allows injured workers to do other jobs within their abilities as they continue rehabilitation.

An experienced insurance agent can discuss your business's insurance needs and help you get the coverage that meets them at an affordable price. Call 1‑888‑276‑4426 today for a FREE workers compensation insurance assessment. This service not only offers a look at other workers compensation insurance options, but it may also provide ways to lower your premiums.

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