Like many business costs, workers compensation insurance is often required. This type of business insurance ensures that your company has the financial protection it needs if a worker is hurt on the job or as a result of performing the job. However, like most business costs, you can manage how much you pay for your premiums.
Reduce Claims and Losses
Insurance companies determine the cost of workers compensation insurance much like other types of insurance; the higher the risk exposure, the more you pay. Each time you file a workers compensation claim, you may be increasing the costs of the coverage your business pays in the long run. Consider the following to reduce the number of claims your business has each year, which can ultimately reduce how much you pay for workers compensation insurance.
Improve your safety program. An up-to-date safety program will help incorporate best practices for employees within your industry, which helps them do their job in a safer manner.
Remind employees about safety procedures. Have daily safety meetings to demonstrate to your employees that safety comes first, which will help them focus on safe ways to do their jobs. Ensure the following safety procedures are known by all employees:
- Procedures for handling chemicals and bio-waste
- Emergency response procedures
- And more
Highlight high-risk work areas. Locate and highlight areas within your business that can potentially lead to injuries for your workers. Warn them about the potential for danger so that they can always be observant of their surroundings.
Revisit Your Business Classification
Another factor that affects the rate you pay for workers compensation is your business classification. High-risk businesses, like construction companies, pay a premium price since employees are more likely to be injured on the job.
Fortunately, as your business grows, you may be able to modify and reclassify some jobs within your organization in order to save money on your workers compensation insurance. Reevaluate your business every year to ensure you are not paying too much for your business insurance.
Workers compensation is a mandatory cost for most businesses. However, you can take steps to reduce the cost so that your business can afford this valuable protection. By diligently assessing risks and safety practices, your business may be able to reduce the amount of money you spend on workers compensation insurance each year.
Protect your business and employees. Call Northside Insurance Agency at (813) 960-5225 for more information on Tampa workers compensation insurance.