How to Reduce Workers’ Compensation Premiums
By taking simple steps to reduce injuries in the workplace, you can reduce and control your workers compensation costs. Workers compensation premiums are calculated based off your Experience Modification Factor or Mod. This formula compares your company’s actual losses to your expected losses by industry type. It includes factors that account for company size, unexpected large losses and the difference between loss frequency and loss severity, to achieve a balance between fairness and accountability. To control your Mod develop a sound safety program, return to work program (for more information and tips on return to work programs see our blog about Return to Work Programs), and proper prevention procedure to reduce loss frequency. The most effective way to reduce workers compensation premiums is having a safe work environment and a proactive safety program to reduce losses. Some other tips include:
- Train Employees – regularly on the safe and correct use of equipment
- Safety Manuals - are created and distributed to all employees
- Return to Work- the sooner the better, but with modified or alternate work
Learn how to increase the safety for your employees while decreasing your premium costs. Download our free Reducing Premiums Workers’ Compensation Tip Sheet today!