An experienced workers compensation insurance broker can help companies control costs and prevent common mistakes. While they may be required to carry insurance, businesses can take actions to control and minimize costs. The following common mistakes can cause insurance premiums to rise.
Assuming Lower Rates Mean Lower Costs
Workers compensation costs may not go down simply because rates are reduced. Premiums are typically determined using a combination of factors, including an experience rating based on industry statistics and the company’s own history of claims. A workers compensation insurance broker can monitor the experience rating used by the insurer to confirm that premiums are calculated correctly.
Maintaining the Focus on Safety
Premium reductions should not cause a company to shift its focus from providing a safe workplace. Safety should be a primary focus at all times. Not only can preventing incidents today mean avoiding future cost escalations and lost productivity, but it shows employees that you truly value their welfare.
Losing Good Employees
When an employee is injured and off work recovering, keeping in regular contact can help the employee continue to feel engaged and valued. In many cases, the workers compensation insurance broker has direct contact with the employee and their service can be critical to retaining the skilled team member. A robust return-to-work program can minimize costs of recruiting, hiring and training new employees due to turnover from mishandled incidents.