6 Ways to Reduce Workers’ Comp Costs Before an Injury Occurs

July 22, 2020 | 182 views

6 Ways to Reduce Workers’ Comp Costs Before an Injury Occurs
6 Ways to Reduce Workers’ Comp Costs Before an Injury Occurs

Workers’ compensation insurance is expensive. Really expensive and getting higher in some industries. If you can lower that cost, it will contribute directly to profit. In addition, a reduction in work-related accidents lowers payout costs while improving employee satisfaction and consistent production levels.

The National Safety Council reports regularly on work-related injuries and workers’ compensation claims. Most injuries that keep an employee out of work are caused by overexertion, falls, and contact with equipment and objects. Ideally, no one would ever be hurt at work, and company expenses would remain low for insurance coverage. However, accidents do happen, so to reduce accidents and injury, keep these objectives a priority:

  1. Develop stringent safety and wellness plans. This must cover safety requirements, stringent enforcement, and support for good health practices. Document it carefully and be sure everyone understands their obligations. You can also determine wellness and ability before job placement to provide a company safeguard from mismatching physical abilities to the job. And to encourage safety, reward those without accidents.
  2. Maintain safety training and protocols. Develop and maintain consistent education about safety measures, correct protective equipment use, and safety concerns. Know your vulnerable areas and draw attention to the caution required. Train on body mechanics and best practices.
  3. Staff and schedule appropriately. Understaffing leads to overworked employees, and overtime is costly to more than just labor expenses. Manage shift times with intelligent software to reduce fatigue which contributes to 13% of workplace injuries. Designate break areas. Avoid night shift followed by day shifts. Keep wellness at the forefront of work hours and rest hours.
  4. Promote a substance-free workplace. This starts with pre-employment testing and can be kept a priority through random testing. Companies with clear testing programs have half the number of injuries.
  5. Design Proper Job Descriptions and Classifications. It’s great when people want to pitch in to help each other, but if an employee injures himself doing something outside his job description, it can hurt your company.
  6. Ask about programs and discounts. Just as insurance expenses for drivers can be reduced with safe driving training, workers’ compensation costs can be reduced if employers utilize one of their provider’s safety and training programs.

Work safety protocols are really a collection of steps that mitigate injury. With good preparation, documentation, and execution, your organization’s workers’ comp claims can be kept to a reasonable level. 


Author Profile Jon Forknell is the Vice President and General Manager of Atlas Business Solutions, Inc., a software marketing company specializing in employee scheduling software, including ScheduleBase employee scheduling software, and other business software solutions. In the past, Jon has been recognized by the U.S. Small Business Administration as a SBA Young Entrepreneur of the Year. Atlas Business Solutions was named as one of Software Magazine’s Top 500 Software Companies in 2004 through 2007, and 2010, 2013, 2014, 2016, 2017, and 2018.

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