How to Reduce Your Workers Compensation Premiums in 4 Steps

How to Reduce Your Workers Compensation Premiums in 4 StepsAccidents happen, even in the safest of work environments, but the resulting increase in workers compensation premiums can be frustrating for employers. Do you find yourself asking how you can reduce workers’ compensation costs?

By managing and controlling claims with these four steps, you can benefit not only from lower premiums but from lower labor costs as well.

1. Increase workplace safety. 

By putting together a safety committee made up of employees and management, you’re showing the importance of workplace safety. At the same time, you are charging employees with the responsibility for their own safety. The committee should meet regularly to review potential improvements, to enforce existing safety regulations, and to ensure that management teams are properly trained on educating employees and enforcing regulations.

2. Consider ergonomics in the workplace.

A growing number of today’s claims are occurring in an office setting. Some of the most common types of workplace injuries are carpal tunnel syndrome, back strain, and headaches. To avoid these types of claims, set up workstations for each employee’s personal needs, provide chairs that have back support, and adjust lighting and computer screens to reduce eyestrain and headaches.

3. Act quickly whenever a work injury is reported.

When a claim is filed, you need to act fast to determine whether future accidents of a similar nature could occur. If  so, take corrective action to reduce the chance of recurring injuries. Additionally, you will need to determine the validity of the claim. Always report suspicious claims to your insurance carrier; for example, if the employee’s explanation seems illogical, if there are no witnesses, or if the employee has filed previous claims.

4. Encourage employees to return to work.

Make sure that injured workers are receiving the quality care they need in a timely manner through rehabilitation programs and occupational therapy. This important step can ensure that employees return to work quicker. Assign a designated employee to contact the injured worker routinely to keep track of their progress. Let the employee know that you care and want them to come back to work as soon as they are ready, even by creating a temporary position.

For more tips to reduce workers’ compensation premiums, contact McGrath Insurance Group at 508-347-6850 or visit

*This article is written for informational purposes only and should not be construed as providing legal advice.