3 Tips To Help You Save Money On Workers Comp Insurance
The law requires most businesses to maintain workers compensation insurance. However, meeting this legal requirement does not need to be a financial burden on your company. This is because there are many ways in which you can go about saving money on your workers comp insurance coverage. Continue reading to learn more about three of these ways in which you can save money on workers compensation coverage.
Tip #1: Consider Working With A Professional Employer Organization
A professional employer organization (PEO) is a company that represents many different employers who are looking to purchase workers compensation insurance. Choosing to work with a professional employer organization can help you to secure lower insurance rates by taking advantage of the impressive negotiating power that these organizations have. This increased negotiating power is made possible thanks to the sheer number of employers that a PEO represents. A PEO can also help to manage your risk by performing safety inspections, investigating fraudulent workers comp claims, and maintaining government compliance logs. All of these services can help to keep your workers comp costs to a minimum by reducing your risk of a claim being filed against you.
Tip #2: Create A Written Safety Plan
Many insurance providers will provide discounts to companies that demonstrate a true commitment to workplace safety. One of the most effective ways to do this is to create a written safety plan which addresses any hazards in the workplace. In addition to informing employees about these hazards, your safety plan should include any necessary training to protect employees against these hazards. You will also want to limit employee duties to those which they have been properly trained for in order to minimize the risk of an accident. Be sure to have all employees sign off on safety materials so that you can demonstrate to your insurance provider that you are implementing this plan in the workplace.
Tip #3: Implement A Strict Drug And Alcohol Policy
It probably goes without saying that employees are far more likely to be injured on the job if they are under the influence of drugs or alcohol. Unfortunately, while most companies will express a zero-tolerance policy for drug and alcohol use, many companies do not take action to ensure this policy is being enforced. Consider utilizing random drug testing and safety inspections in order to ensure your employees are remaining drug and alcohol-free. This will help to minimize your risk of on-the-job accidents and will ultimately result in lower workers compensation insurance costs.