3 Ways For Small Businesses To Save Money On Workers Comp Insurance
Almost all employers are required to carry workers' compensation insurance, which is a type of insurance policy that is designed to pay for the medical bills and lost wages of an employee who is injured on the job. While worker's comp insurance is an important financial safety net, the premiums can be expensive, especially for small businesses. If you own a small business, you may have a tight budget, so any savings can help. Luckily, there are a few different ways to lower your insurance premiums. Use the following tips to help you save money on your worker's comp insurance premiums:
Implement a Safety Program
When determining premiums, insurance companies consider a number of factors, including the risk to insure. One easy way to lower the risk rating for your small business and employees is by implementing a comprehensive safety plan. When you create a safety plan, everything needs to be in writing, and it is important that every employee is trained to ensure that they understand the safety plan. Your safety plan can result in much lower insurance premiums, since employees who are well-trained in safety are less likely to get injured on the clock, meaning fewer insurance claims.
Have a No-Tolerance Policy Regarding Substances
A person under the influence of drugs or alcohol is much more likely to have an accident or get hurt than someone who is not. If you want to show your insurance company that you are serious about safety and want to prevent accidents, it can be a good idea to have a no-tolerance policy regarding substances. You may want to consider doing drug screenings prior to employment, and if you run a business in an industry that can be considered dangerous, such as construction, you may also want to consider randomly drug testing your employees.
Look for Group Rates
Most small businesses do not have a large number of employees, but that doesn't mean that you can't qualify for lower-priced workers' compensation insurance. There are many industry and trade associations that small businesses can join, and one of the benefits of doing so is the opportunity to qualify for group rates when buying workers comp insurance. Group rates can be substantially lower than regular rates, so even if you have to pay a membership fee to join an association, it is well worth the cost and can save your business a lot of cash.
To learn more about workers' comp insurance, consult a resource in your area.