Independent Agents Can Help Reduce Workers’ Compensation Costs

Every business needs workers’ compensation insurance. Workers’ compensation insurance is designed to help injured workers in many ways. Workers’ compensation can help the insured employee with payment of medical bills, provide lost wages, and even provide recovery services. Workers’ compensation can also help the employer by providing the resources necessary to get injured employees back to work.

Employers are responsible if an employee is injured on the job. Workers’ compensation is also designed to protect workers while in vehicles, or even for injuries suffered away from the worksite as long the employee was performing their duties as an employee of your business.

There are many insurance companies that can provide workers’ compensation coverage for your business. However, insurance companies differ in customer service and products offered. It is essential to have an agent who understands which insurers are best suited for your business. A good agent will search the market and then provide the best options for your business.

Injuries in the workplace can be expensive to your business. There are over four million workplace injuries in the United States each year, according to OSHA. These injuries can cause other issues with the workforce including increased workload on non-injured employees. When you consider the cost of training, safety programs, and insurance, workers’ compensation is a large part of your businesses expense.

We can help businesses manage their workers’ compensation cost by:

1. Providing education to businesses about workers’ compensation.
2. Helping businesses select the right workers’ compensation insurer.
3. Making sure all employees are classified correctly.
4. Provide training to managers and/or employees as needed.
5. Providing options for coverage and deductibles.
6. Analyzing claims to determine accident trends and then develop action plans.
7. Work with the insurer to make sure all claims are being processed correctly.
8. Working with businesses in developing safety programs.
9. Developing a framework for early return-to-work programs.
10. Helping businesses prepare for an audit requested by the insurer.
11. Helping businesses develop written safety standards.

There are many other issues facing businesses regarding their legal obligations under workers’ compensation laws. A good agent will be proactive in helping their clients prepare for the future including:

• Helping businesses understand the many changes in healthcare and how these will relate to workers’ compensation.
• Working with clients in the development of self-insured programs or high deductible plans.
• In California, businesses need to have a firm understanding of how the laws pertaining to illegal workers.

As every business knows, OSHA plays an important role in the protection of employee rights by holding businesses accountable for a safe workplace. OSHA will inspect a company on a regular basis, and sometimes these inspections are random and unscheduled. Enterprises need representation in dealing with OSHA, and agents can provide necessary resources. An OSHA inspection can create a lot of stress to the company, but there are many actions you can do beforehand to prepare and make the OSHA visit less stressful. Your company should work to understand what OSHA expects and then develop a plan. Here is a list of policies and procedures that your business should consider as part of your overall safety program:

• Make sure all accidents are reported, and a written accident report prepared.
• Your business should have an MSDA book that is up-to-date and accessible to all employees.
• Keep up with all housekeeping issues.
• All employees should be trained according to OSHA rules.
• Make sure all your training is documented.
• All machines must have guards.
• All exits must be clearly marked.
• If your business uses 50-gallon drums, the contents must be clearly marked.
• Have all safety committee minutes organized in a notebook and available for all employees to view.
• Keep all your posting requirements up-to-date and in a place for employees to view.
• Make sure all electrical panels are closed.
• There must be a clear path to all exits.
• Your employees should be required to wear safety equipment as required by OSHA.
• Always enforce safety rules.
• Create clear accident investigation policies and procedures.
• Make sure management supports all safety procedures and is part of the process.
• Encourage employees to participate in your safety program.

Workers’ compensation costs are a large part of any operation. It makes sense for your business to do its best to manage workers’ compensation costs proactively. Managing your workers’ compensation program can also help reduce workplace accidents and bring injured workers back to work.

Leap / Carpenter / Kemps Insurance Agency works with many high-quality insurance companies and can offer the best possible combination of coverage, price, and service. We will work for you if you have a loss and make sure all claims are settled to your satisfaction.