Any time that a person is injured while at work or in the workplace, that employee is eligible to receive financial compensation for said injuries. This program, known officially as workers’ compensation, is designed to cover all medical expenses that result from the injury. Due to the high costs of medical bills, companies have shifted, almost exclusively, to purchasing workers’ comp insurance through a licensed provider. In almost every state, this is a legal requirement as well and though it saves money when an incident occurs, high premium rates can cost a business much as well.
If you are a business owner or manager, you may be looking for ways to reduce the cost of workers’ compensation and lowering insurance premiums is an excellent way to do this. Firstly, it is important to understand how premiums are calculated. Basically, your workers’ comp insurance premium will be the product of the insurance carrier’s rate, the amount your company pays in payroll times 100, and an experience modifier. The carrier’s rate is often out of your control and you may not want to adjust payroll just to lower insurance, so instead it is best for focus on the last part.
The experience modifier is based on the company’s history of workers’ compensation claims juxtaposed to the average amount of claims in the industry. This is set up this way because some fields, such as construction, will naturally have more claims due to the somewhat dangerous nature of the job. While you can’t change the national average, you can influence your own company’s history of workplace injuries and this is the key to lowering your insurance premiums.
The best way to lower workplace injuries is to create a safe environment and emphasize safety to employees. There is always room to create new safety protocols, particularly for tasks that lend themselves to injury. Additionally, there are sometimes state-sponsored programs that you can be involved in. Finally, your business may qualify for a group rate, which is worth asking about to your insurance carrier.
Remember though that anytime an employee is injured while on the job, the employing company must provide workers’ compensation. Therefore, failing to pay is not appropriate, or legal, way to reduce costs. If you are an employee that has been hurt on the job and are having difficulty obtaining workers’ compensation, we at the Franco Law Firm are here to help. To learn more and to schedule a free consultation with us today, please call us at (813) 872-0929.