5 Tips to Lower Workers Compensation Premiums!

Welcome to the new website! I now have a forum to provide you with helpful information relating to your insurance. It will also be a great place for you to catch up on insurance industry news. It’s a given that your employees are one of your most important resources. We all know that as an employer in California, you’re required by law to provide your employees with the protection of Workers Compensation insurance. Because a claim on your Workers Comp policy can affect your premiums for years, in addition to purchasing the coverage, there are things you can do throughout the year that will help you keep your Work Comp premiums (and potential claims) in check.

  • Make safety a common goal, having safety and training programs in place shows your employees you care about their welfare as well as helping to keep insurance costs down so that employee payroll has room to go up.
  • Avoid the risk of cancellation after “audit” or inspection by giving an honest representation up front of what your employees do in their occupation.
  • Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles, gloves and respirators when necessary.
  • Consult with OSHA or visit www.osha.gov and utilize the California State Compensation Insurance Fund site www.scif.com/safety for more safety tips as excellent free resources.
  • If possible invest a small percentage (even less than 1% is a great) in safety training or employee time to have regular safety meetings.

Your loss control actions as an employer go a long way toward showing your employees you care, and saving your company’s future dollars. By accessing the OSHA and State Fund sites above, you’ll have a plethora of worker training materials such as fact sheets, checklists, and other educational resources that are available online and can be printed to distribute to workers participating in workplace injury and illness prevention programs. Because a number of factors go into determining your annual premium, it is important to take control of what you can. In addition to safety and prevention, other factors that can positively affect your workers comp premiums are possible special underwriting adjustments such as use of a certified health care organization, and any special group programs you may be eligible for.

Since factors such as your company’s past history of work related injuries (known as your experience modification), your payroll, and classifications are fixed by your type of operation, company size and past claims, it is essential that you take control of what you can. Rates can vary from carrier to carrier and if you have a good track record, or are starting a new business with employees in low risk classifications, we have many Workers Comp markets to solicit quotes from on your behalf. For employers who are in high risk classifications, have had significant past losses, or have started a new business in a type of operation deemed to be higher risk without prior “workers comp experience” we can certainly provide you with a quote, but our markets will be more limited.

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