Did you know that workers’ comp insurance is mandatory for most employers in the US? This essential business insurance coverage is designed to provide funds for employees who have been injured or fall ill following an accident on the job. Whether they broke their arm in a slip and fall accident, or they have an overuse injury like carpal tunnel syndrome—your valuable employees can enjoy peace of mind knowing that their medical bills, lost wages, and even death benefits will be taken care of. And workers’ compensation insurance also protects your bottom line, helping you to avoid being sued by an employee or paying out-of-pocket for injuries. But how can you save on this key insurance coverage? Keep reading to learn more.
Is it Possible to Save on Workers’ Comp Insurance?
In the state of Indiana, all public and private businesses are required to carry workers’ compensation insurance. Additionally, the rate that you must pay for coverage is something that cannot be changed. These special rates are determined by the type of industry you are in and the likelihood that your staff members may become injured on the job. For example, if you run a flower shop, you’ll likely pay a lower workers’ compensation rate than a roofing contractor because there is a lesser chance that your employees will become injured during day-to-day operations.
While these factors cannot be changed, there are steps small business owners can take to reduce their workers’ comp-related costs. These include:
Promoting a Substance-Free Workplace
If any of your employees decide to use drugs or alcohol while performing while they’re on the job, it’s only a matter of time before they cause injuries to themselves and their co-workers. Studies indicate that employees who are under the influence of drugs or alcohol cost employers twice as much in workers’ compensation and medical costs than sober staff members. Requiring a pre-employment drug testing is one of the most efficient ways to keep your business a drug-free zone. Additionally, random drug testing can also help promote a safer work environment.
Invest in a Work Safety Program
We all know that accidents at work are inevitable, but many incidents can be prevented by adhering to a well-planned safety program. Before setting up your own, work with an outside agency or your team leaders to identify and eliminate possible workplace hazards that could lead to accidents and injuries. From there, you can create a workplace safety program that is tailored to your business.
Research data shows that the return-on-investment for safety program implementation is very high. In fact, one study found that for every dollar a business invests in injury prevention, they can expect to receive a $2 to $6 return.
Start a Return-to-Work Program
When your valuable employees do become injured at work, it’s crucial that your company does everything possible to make sure that they can return to work in a timely manner. With a return-to-work program in place, injured employees can start working as soon as they are deemed medically able—even if this means that they take on a modified role within the company or work fewer hours at first. The sooner they return to their position, the less you will have to pay in workers’ compensation benefits.
Contact Binford Insurance Today
Working with an independent insurance agency is the best way to make sure that you have a comprehensive business insurance policy at an affordable price. Want to learn about more ways to save on essential business insurance coverage? Call (317) 588-3825 or contact us for more information and be sure to request a free workers’ comp insurance quote today.