As a business owner, you have a responsibility to keep your employees safe on the job, particularly in a high-risk industry like construction. In fact, in almost every state employers are required to carry workers compensation insurance.
Workers compensation claims can become costly, fast. In 2017-2018, the average workers comp claim was $41,003. Some types of claims, like motor vehicle crashes, could far exceed this number. Keep reading for tips to save money on workers compensation costs and claims so you can keep your team safe and your cash flow where you need it.
#1: Know What Qualifies
Knowing what claims are eligible for workers compensation can help you better understand how to proactively manage your risks to prevent injuries and claims.
For example, If your employee sustained an injury while doing their job safely and properly, it's usually covered by workers comp. Working conditions are also important to note. Hazardous working conditions, like long-term exposure to hazardous materials or a non-ergonomic setup, can result in an employee needing to file a workers comp claim.
On the other hand, injuries to independent contractors, offsite injuries, and self-inflicted injuries are often not covered.
#2: Make Safety A Priority
Hazardous working conditions and unsafe practices can result in injuries and conditions leading to workers comp claims. It's crucial to make safety a priority for the health of your company and to save on your workers compensation policy.
Implement regular, effective safety training and make sure your job sites and practices are assessed for safety.
As a bonus, some carriers will give you a discount on your workers compensation premiums for proactive efforts like these.
#3: Encourage a Substance-Free Environment
Construction is a high-risk industry and intoxication can make the job even more dangerous. The use of drugs or alcohol while working can lead to more injuries and more workers comp claims. Creating a substance-free work environment can help reduce claims.
#4: Develop A Return-to-Work Program
Workers Compensation claims that stay open longer ultimately may cost you more due to lost wages and other expenses. Offering a way to collaborate with an injured employee's medical team to offer light-duty or reduced hours to help them get back to work can reduce costs.
Workers compensation claims can cost your business thousands. By proactively implementing the right safety practices and ensuring you're in compliance with all state and federal regulations, you can keep your team members safe and lower your workers compensation costs.
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