Workers’ Comp premiums may seem out of your control, especially if the rates are set by your State, however there are several things you can do to lower your premiums. Addressing your loss control, safety issues and OSHA training will all contribute to lower Workers’ Comp (WC) costs. Many of these processes are relatively simple to implement and will benefit your company in a variety of ways. It’s important to proactively focus on these areas, as in the long-run it will help you reduce your WC premiums.
One way to control your WC claims is to review your general loss control. There are three main areas you should focus on.
An additional way you can prevent WC claims is by addressing safety issues. These encompass a variety of areas, and while some procedures may seem obvious, don’t neglect any of these—and be sure to keep them up-to-date.
In certain industries such as manufacturing, OSHA training is especially important. Be sure your employees are trained to OSHA standards and that they know the emergency procedures, i.e. if there’s a fire whether they should fight it or flee. Do you have a central meeting place in the event of an emergency, and is someone responsible for taking a headcount?
Surprise OSHA inspections do happen, and if you’re prepared you can reduce costly fines. In addition to the fines (which have continued to increase), you can avoid the negative impact on your reputation and brand that can result from an inspection with a negative report. Some of the precautions you can take to prepare for an OSHA inspection include implementing: machine guarding, lockout/tagout procedures, forklift training, machine danger zone identification, hazardous materials and hazard communication protocol, personal protective equipment requirements, and fall protection guidelines.
Implementing the procedures discussed above will enable you to take control of your WC costs, and ultimately lower your premiums. Acting proactively will benefit you, your employees and your bottom line.
If you would like to discuss measures you can take to lower your Workers’ Compensation costs, contact Lisa A. Kendrick, CIC, CRM, AAI, LIA— Director of Commercial Lines. Lisa can be reached at 781-726-7104 or firstname.lastname@example.org.
Lisa brings over 30 years of commercial lines property and casualty insurance experience to Provider Group. In addition to directing the commercial lines practice, she works with businesses to develop insurance programs that not only meet their current needs, but also incorporates strategic goals for the future.