How Businesses Can Keep Their Workers’ Compensation Costs Down

Over 140 million workers are covered by some type of workers’ compensation insurance. A staffing agency insurance program should always include this coverage for every worker: to have coverage is to ensure there’s a safety net if someone gets hurt.

This is an important coverage, but it can also be an expensive one. Workers’ compensation costs employers $95 billion annually. Since workers’ compensation is necessary for many jobs, there’s no cutting corners with no purchasing it; in fact, most states in the U.S. mandate it. 

If you’re left without this type of coverage, the results can be disastrous. There’s no telling what kind of accidents can happen on the job, with some more serious than others. Dealing with the constant stress of a hurt worker can take a toll on an employer and their executives.

However, there’s ways that businesses can keep their workers’ compensation costs down. As long as you understand your rates, there’s ways to lower your premium. Here’s what you need to know about workers’ compensation costs for your business.

A Lot Comes Down to Your Modifier

Depending on the occupational risk, a premium can be higher for a construction job versus a clerical job. On top of that, your experience modifier is going to play a large role in costs as well. So if nothing has ever happened that has required your insurance to step in, then you’re going to have the chance to have lower premiums.

If order to lower that modifier, a few things need to be done, according to The Balance:

  • Maintain a safe workplace and make it a strict priority. Prevention is the best way to help your employees. Mandate safety training and evaluate the outside premises, if possible.
  • Establish a return-to-work program. This gives employees the time they need to get back on their feet and return to work safely.
  • Enroll in state-sponsored programs. If you’re struggling to improve safety, the government can help. For example, there’s cheaper premiums for those enrolled in a drug-free workplace program.
  • Become a part of a group in order to get group ratings. If you can join a  large group or work association, there might be discounts available for your staffing agency insurance. To qualify for a group, you have to have a crystal clear workplace injury history.

Other Ways to Lower Costs

If you’re wondering what else you can do to decrease workers’ compensation costs, here’s some tips compiled by the Independent Electrical Contractors:

  • Ensure all job classifications are accurate.
  • Provide proper care when an employee is hurt.
  • Review information on employee injuries carefully.
  • Make sure all experience modification factors are correct.

These are some of the easiest ways to make sure that your staffing agency insurance is cheaper while still effective. With workers’ compensation, it’s always better to be safe than sorry.

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.