Most states, including Missouri, require employers to purchase workers’ compensation insurance. If you are an employer with at least five employees in this state, you will need to buy this type of coverage to comply with state laws. However, this coverage can be costly. To get the workers’ compensation insurance you need without going over budget; you need to understand how you can save money on your workers’ compensation insurance.
About Workers’ Compensation Coverage
Workers’ compensation insurance exists to protect you if one of your employers becomes injured or ill while on-the-job. Employee injuries may range from minor problems like carpal tunnel syndrome in an office environment to fatal injuries sustained on a construction site. When these incidents occur, they can be costly for your company. However, when you have workers compensation insurance, your insurance provider will cover all your injured employee’s qualifying expenses, such as medical costs, lost wages, and even death benefits.
How Much Will Workers’ Compensation Insurance Cost?
The cost of workers’ compensation insurance will vary based on many different factors. In most cases, there will be a base rate for workers’ compensation insurance that will be adjusted to account for specific employer characteristics. Some of the characteristics that will impact your rate include:
- State and local laws
- Employer claim history
There isn’t much you can do to change laws or the industry in which your business operates. However, you may be able to take steps to improve the third factor affecting your rates.
How to Lower Workers’ Compensation Insurance Costs
The best thing you can do to improve your worker’s compensation insurance rate is to change your business claims history, which is also known as your “mod.” Some strategies recommended for lowering your mod include:
- Improve your claims management – Proper claims management can help to reduce payouts and, in turn, improve your mod. To improve claims management, be sure you are filing all claims in a timely manner, making personal contact with injured employees, and overseeing the claims process to ensure that everything runs smoothly.
- Invest in safety – Another way to improve your mod and lower your worker’s compensation expenses is by investing in new safety protocols and training for employees. Keeping employees as safe as possible will reduce the number of injuries and, as a result, the number of claims filed against your policy.
- Encourage a safe return to work – When you have an injured employee who isn’t able to work, remain in contact with that employee. Take steps to facilitate medical care, rehabilitation, and a return to work. The sooner your employee recovers, the lower the total payout will be.
In addition to improving your mod, you can also reduce workers’ compensation insurance expenses by making sure your business and all its employees are appropriately categorized, as well as by shopping around to find the best provider. For more information about buying affordable workers’ compensation insurance, contact Awesome Insurance today.