Small business worker and how to control workers' compensation costs

9 Ways You Can Control Workers’ Compensation Costs

As a small business owner, it is important to monitor and control day-to-day operating costs. When it comes to a company’s workers’ compensation insurance, there are a number of factors that will affect the premium. Below are 9 tips a small business owner can implement to help control workers’ compensation insurance costs:

  1. Provide focused safety training for managers and employees with an emphasis on active participation from employees and a commitment by managers.
  2. Develop a written policy that deals with toxic substances in the workplace and provide it to employees who work around toxic chemicals.
  3. If an accident does occur, report it and then investigate it. Workers’ compensation fraud can cost a business money in the long run by impacting the business’s losses which results in increases to the workers’ compensation insurance premium.
  4. Confirm that injured workers are not independent contractors or subcontractors. Those types of workers may not qualify for workers’ compensation coverage through the policy of their client, the small business.
  5. Be as accurate as possible when filing a workers’ compensation claim, paying close attention to key components such as “who, what, when, where, and how.”
  6. Develop a written return-to-work policy which establishes standards for employees concerning when and how to return to work after an injury is sustained.
  7. Request an independent medical examination (IME) to make sure that the injured employees receive quality care and recover in a timely fashion.
  8. Stay up-to-date on case status by remaining in contact with your insurer, treating physician, and claim administrator if any.
  9. Compassion and open communication go a long way towards reducing resentment and retaliation. 1

1. “HR’s Guide to Workers’ Comp,” HR Hero, May 2012,