An employer can use a few tactics to reduce workers’ comp costs and ensure that the business thrives without incident. According to data published by the National Safety Council, the average combined price for a workers’ compensation claim was $42,008 from 2018 to 2019. This figure is no small sum, and for a small business, it could be devastating. To avoid payouts like this, you must try to prevent the most common workers comp injuries.
Reduce Workers’ Comp Costs: Ways to Handle
You can minimize the cost of claims and protect your business from losses caused by workers comp. Likewise, there are proper ways to go about this.
Manage Claim Duration
One major thing affecting the cost of a claim is the duration it gets approval for. Workers’ compensation regulations can vary depending on the state, but most dictate that the maximum duration of benefits is anywhere from three to seven years. It is a very long time for an employer to continue compensating an employee who’s no longer working — or working on light duty. To reduce the duration of a claim, you should provide access to care that produces positive patient outcomes. Investing in high-quality care can ultimately save your business money.
Assign Transitional Duties
The longer employees spend time away from work, the less likely they will return. For this reason, getting workers back on the job as soon as possible is imperative. Of course, if they are still recovering from their injury, they likely won’t be able to resume their full job duties immediately. Instead, you should provide these workers with transitional responsibilities that don’t require physical exertion. Assigning administrative tasks or secretarial work, for example, is a great way to keep an injured employee active and reduce the cost of time lost claims.
Minimize Reopening Rates
Unfortunately, employees can reopen a workers’ compensation after benefits end. It may happen if an employee is re-injured or if they return to work before making a full recovery. Businesses can avoid this outcome by checking in regularly to ensure that an injured employee is recovering and closely monitoring their transition back into the job. You should remind these workers, too, of the resources that can assist them in their recovery.
Eliminate Workplace Risks
The easiest way to reduce the cost of workers comp claims is also the best approach. Businesses should continuously strategize ways to reduce the risk of injury in the workplace. There are several ways to do this, including implementing mandatory safety training. You should also inspect equipment and machinery regularly to ensure that there are no issues that may put workers at risk. Finally, you must ensure that every worker wears the correct personal protective equipment. These steps can reduce the overall likelihood of a claim and thus minimize the cost.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
