In California, workers’ compensation insurance has the potential to be costly. Depending on your industry classification rate, the actual cost to employers will vary. High-risk industries or businesses that need to file claims often pay the most, since insurance premiums rise the more frequent claims are filed.
However, California businesses can take advantage of several savings programs and discounts on workers’ comp insurance that they may not be aware of. Simply because companies will purchase an insurance plan without consulting an Employer’s Service agency or without staying up-to-date on the latest changes. Additionally, not all insurance carriers even specialize in workers’ compensation. This means your business could miss out on savings because you don’t have a policy set up that will maximize returns and benefits.
To help businesses cut down on Workers’ Comp costs, we’re providing you with a few strategies to follow.
Shop Around and Compare Plans
Before your business even has an insurance plan purchased, you should take the extra time to compare the available options. Not unlike purchasing car insurance or health insurance, rates and benefits are going to vary. And, depending on the number of employees you have and the kind of work you do, certain insurance companies may not even offer you plans because they just don’t want to take on the risks associated.
What’s more, it’s not a bad idea to have an insurance agent visit your workplace facility to assess potential hazards. A business should aim to facilitate a professional relationship with its insurance provider to help determine if the company is a good fit.
Even after you’ve found the right plan, continue researching new plans. Rates and policies will change over time, as will your business needs, so stay on the lookout for better options.
Create Safety Manuals and Put Documented Programs in Place
An effective way to save costs on workers’ comp is by putting together thorough safety documentation and then implementing it throughout your business. Being proactive and conducting routine safety checks around your building, and reviewing basic safety procedures with employees, not only helps reduce the risk of injury — insurance companies are more likely to offer discounts and credits to your business.
Prioritize Effective Claims Management
By following all the best practices for managing employee claims, you can cut down on time and costs. A business should be sure that its claims adjuster is making contact with the employee, medical personnel if needed, and filing paperwork in a timely manner. Furthermore, a claims timeline should be well documented.
Creating a return-to-work program for temporarily disabled employees ensures that employees are able to return to work without unnecessary delays. And that your business will spend less as well. Stay in contact with an employee during their time away, and take extra measures to ensure the business has clear paths forward for them. Remember, the faster a workers comp claim is closed, the more money your business will save.
Maintain a Substance-Free Work Environment
Businesses that encourage a drug and alcohol-free environment are less likely to have an employment-related injury due to substance use. What’s more, insurance companies may provide a discount on your policy if you can verify that you have a written drug policy or drug testing procedure in place.
Turn to Samuel Hale and The Patriot For Even More Workers’ Comp Savings in CA
Our unique employer solution, The Patriot, helps analyze workers’ comp claims for fraud, and save money on expensive insurance premiums. In addition, our alternate dispute resolution process will reduce claims entirely, and keep your business safe from fraudulent activity.
If you’re ready to eliminate litigation, reduce your xmod rating, and save your business from high insurance costs, contact us today.