How Can You Save Money on Workers’ Comp Insurance?

Employers spend close to $1 billion a year on work-related illnesses and injuries that could have possibly been prevented with proper training. Besides creating safety awareness among employees, workplace safety programs can lead to an increase in productivity and a renewed sense of well-being. OSHA encourages employers to allocate resources to safety programs as an investment in strengthening the health and stability of the company.

Money spent on work-related injuries and illnesses is not used for productive purposes. When the employees works, their pay buys their productivity. If they are injured, the money they receive is going toward lost hours that are no longer considered to be productive. This means that those hours are considered a loss in terms of profits.

Significance of Workplace Safety Programs

In order to reduce the number of workplace injuries, it’s important to teach safety protocols and programs that employees can utilize. If they have all the right tools at their disposal, they can maintain a safe and productive work environment.

When workers are informed about the right way to perform certain tasks, it reduces their risk of injury and minimizes the costs associated with them. These programs also teach employees to identify potential hazards at the workplace. Minimizing hazards makes the workplace more secure and allows employees to be much more productive.

Effect of Workplace Safety on Workers’ Compensation Rates

Employees who have the right safety training are less likely to be involved in a work-related injury. They are also more likely to take the necessary precautions to avoid being exposed to conditions in the workplace that result in severe and sometimes life-threatening injuries or illnesses.

Safety training programs provide employees with valuable information they can use. The safer employees are while they are at work, the lesser money employers spend paying for medical expenses and lost wages. Reducing this expense improves the employer’s bottom line and helps them maintain a higher profit margin.

Factors That Determine Workers’ Comp Insurance Cost

Workers’ comp insurance rates are determined by the number of employees listed on the company payroll, the business’ classification, and the specific occupations of the employees. Higher-risk occupations will raise the cost of the employer’s Workers’ compensation policy. Including an experience, the modifier will also affect the rates, especially if a company’s history shows fewer accidents over time. All of these factors will work together to establish affordable workers’ comp rates that will help you maintain your business’s financial health.

When you need to purchase a workers’ comp policy for your business, you will want to explore the costs as well as the possibility of implementing safety programs that will help your employees remain safe on the job. Contact our agents here at Pittman Insurance Group for more information today.

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