Small business owners have to be aware of overhead at all times. Workers compensation insurance is one of those costs and it can be very expensive, but there are a few things you can do to reduce those costs. Like most insurance coverage, workers compensation is based on risk, use, and abuse. Here are a few things to consider when looking at ways to lower the cost of your coverage.
Ensure the Validity of Claims Placed
Fraud is a huge problem in the insurance industry and worker compensation is no exception. A lot of fraudulent claims against a policy will affect the premiums over time, so taking steps to ensure that any claim placed is valid is critical. Investigate any accident or injury thoroughly and consider hiring a trained investigator if you suspect fraud. Companies that specialize in these types of investigations will know what to look for and how to properly investigate the incident without bias. They may also make recommendations for changes based on their observations.
Hire an Independent Surveillance Company
If the number of claims seems excessive, you could consider hiring a surveillance service, like Investatec Systems Ltd., or company to monitor the areas where these accidents are occurring to evaluate the situation. It is possible that working conditions need to be addressed or could potentially show you if safety is a concern or problem in the area. Identifying the problem is the first step to lowering those claims. While it might seem intrusive at first, sometimes the only way to really see the problems is to look at them without people knowing you are looking. These companies specialize in doing just that.
Schedule a Safety Inspection of the Workplace
Inspecting the entire workplace for safety concerns will help you identify problem areas and correct them before accidents happen. The lower number of accidents and claims will lower your worker compensation insurance premiums over time while keeping your workers healthy, safe, and happy. A record of monthly or yearly inspections may also help to reduce the cost of the policy as well as uncovering long-term or ongoing violations that resurface or need permanent correction.
Require Contractors to Carry Their Own Coverage
If you use a lot of contract employees, asking the company providing the workers to cover the worker compensation insurance is pretty standard. Most of the time they will not have a problem with it and because these employees are not on your policy, the cost to cover permanent employees will be lower. It is a common practice and an easy way to reduce your costs a little.
