It can be frustrating to see your business insurance costs rise. One specific area of concern is workers compensation insurance.
This protection helps all companies minimize financial loss when an employee suffers an injury. It's so essential that some states require it.
Yet, when costs for this coverage rise, there may be an underlying reason for it. And, addressing those reasons might help you save money.
Here is where to start in reducing these costs.
Find Out The Underlying Cause
Contact your Dean Heckle & Hill agent. Inquire about the amount and type of workers compensation insurance you have. Does it fit your company's needs?
A high-end policy that you never use may be costing you money. On the other hand, your agent can also give insight into when you do not have enough coverage.
Look deeper as well. Ask your agent about your cost increase. Why is it happening?
Understanding the root cause could lead to cost savings in the long term. Sometimes, it is just an inflationary rise. Other times, it is due to claims history.
How To Reduce Risk To Lower Costs
If someone in your company files a workers compensation claim, chances are good your policy costs are going to increase. Yet, there may be a few things you can do to reduce those costs.
Put In Place A Safety Program
One of the best ways to reduce costs is to establish a safety program within your company. This type of program works to identify and eliminates workplace hazards. There is often a sizable return on investment for any type of program like this.
Work with a consultant or use an industry-specific template to create this program. It needs to address your company's specific risks.
Create A Return-To-Work Program
This type of program aims to get people back to work sooner. They may not be able to return to full duty, but they may be able to work and benefit the company in a lower capacity. If this is the case, it might help cut the amount your insurance policy pays out to cover long-term injuries and illnesses. Most often, this type of investment may include helping people return through part-time work or even light duty. Therefore, they can begin to return to their role.
The good news is your workers compensation insurance provider is likely to help you. They do not want to pay out a significant amount on a frequent basis. That is why many have risk management tools and resources to offer companies. These may give you ideas on how to tackle the concerns in your space. They help you save money in the long term.