6 Ways Companies Can Reduce Workers’ Comp Risks
Good business owners know the importance of ensuring the health and safety of their employees. But is the protection of your company also a top priority?
Hopefully by now, you realize that providing workers’ compensation insurance to your employees is not only smart but is required by all state laws, with good reason. According to dataprovided by the Social Security Administration, just over $7 trillion in workers’ compensation money was spent in 2015 throughout the U.S.
Providing workers’ compensation insurance may be an added expense for your business but there are ways you can minimize claim risks. Coast General Insurance Brokers reveals 6 tips you can use to reduce workers’ compensation risks and:
1. Establish a Risk Management Plan
Firstly, what is risk management and why is it important? Risk management helps business owners decrease the risk of potential losses, especially related to workers’ compensation claims. To create a successful risk management plan, business owners must review what dangers or risks their employees might face and establish policies and training that will help workers stay safe. In other words, your goal is to create a work environment that ensures that both your employees and your assets are protected. Have safety policies written down and distributed to employees when they first begin working for you and be sure to review them regularly with your workers.
2. Vet Employees Thoroughly
As with any job, you should be confident that you’re narrowing down only the most qualified candidates with relevant experience. If there are risks related to the job (this is often the case in fields like construction), list them in your job description. Candidates should be well aware about the safety risks that come with the job.
Unfortunately, some companies make the mistake of not thoroughly investigating some candidates’ job histories. Do your research so that you avoid hiring candidates that have a history of making fraudulent workers’ comp claims.
3. Be Strict About Drug Policy
Be clear with employees about your company’s drug policies. If you feel that it’s necessary, facilitate drug tests to employees and potential hires. Employees who work while under the influence are more likely to get injured on the job, resulting in accidents and costly medical expenses.
4. Be Strict About Employees’ Well-Being
Spend a little extra to provide ergonomic chairs, desks, and other supplies for your workspace. Work injuries aren’t always the result of major accidents; employees’ medical problems can also arise from back and neck pains and carpal tunnel.
Don’t overwork your employees, either. If individuals are sleep-deprived, the overall quality of their work will be compromised.
5. Hold Regular Trainings on Safety Procedures
In addition to providing a training handbook to all employees, you need to provide proper training sessions to new hires and safety procedure reviews for veteran workers. Don’t hesitate to give extra training for workers that you aren’t fully confident in yet and only allow experienced, skilled individuals to provide the training.
6. If Someone Does Get Injured…
Even the most proactive, safety-conscious business owner can find him or herself dealing with an unexpected workers’ compensation claim. Follow all your insurance company’s instructions, documenting the work injury carefully. It’s important to have everything written down when reporting such claims to lessen the chance of litigation.
Stay in touch with the employee filing the claim to show that you care. Your attitude will encourage him/her to return to work (once he/she has recovered) and help avoid a potential lawsuit.
Every business is unique, which means finding a broker who will pay attention to your business’s specific needs is crucial. Contact Coast General Insurance Brokers today to find the best competitive insurance quotes, service, price, and value. Call (805) 644-4740 to speak with one of our friendly agents for a free quote today! We proudly serve Ventura County and all of California for your business insurance needs.