Workers compensation insurance rates can be overwhelming for some businesses. A few accidents or injuries and you could be wondering how you will continue to pay for this type of coverage, which is required in many cases. Yet, as a business owner, you know the value of protecting your employees. The good news is that there may be a few ways you can reduce what you are paying for this type of business insurance. The key is to take the time to shop for the right policy with the help of your independent insurance agent and implement new safety protocols within your workplace to minimize risk.
While workers compensation insurance is a necessary and often mandatory business requirement, you don't have to overpay for it. These tips can help reduce costs, no matter what your business is experiencing today.
Put safety first. The most important way to help reduce your rates is to incorporate a safety policy. Ensure your employees have safety training. If you have the budget to do so, have an outside safety evaluation conducted to determine the risks and then implement the recommended changes to minimize the risk of injury.
Group ratings can lead to savings. If your company can be a part of a group rating, you may get a discount. You may not qualify if you are a new business. However, you'll want to work towards becoming group-related in order to obtain this type of discount.
Consider state-sponsored programs. Again, it's important to incorporate safety into your day-to-day work schedule. To do this, you need to consider the value of state-sponsored programs. For example, if you have inspections from these organizations, your rates may decrease. You may find compliance somewhat difficult, but the cost savings can make it worthwhile.
It's a challenge in some industries, but ultimately incorporating these safety programs can help improve your company. When you operate a safe business, you reduce risks and improve your company's MOD level (which directly impacts your rate). However, you are also creating a business that's safe, efficient, productive and employee-focused. This can make these programs worthwhile. Don't overlook the value of incorporating these tips to reduce your workers compensation insurance rates.