Workers compensation can be one of the costliest insurance coverages that you purchase, but much can be done to manage your premiums. The prime way to control costs is to minimize claim activity. A strong claim management program, in cooperation with loss controls, helps even the most difficult risks to lower claim frequency. While some accidents are unforeseen, very often simple consideration of your exposures, with the implementation of specific strategies, can reduce or completely eliminate dangers. Taking precautionary measures resonates with insurers and positively positions you for renewal negotiations.
Results of a lack of focus on losses
Companies not proactive in loss controls may experience higher claim ratios which can affect employee morale and could ultimately create an atmosphere where employees turn in too many claims. Once a "care-free claim attitude" develops in a workforce, it can be difficult to make changes without enforcing drastic measures. Employees must be helped to understand the high costs of insurance and how the minimization of losses directly correlates to a healthy business and more money in their own pockets. Furthermore, for those companies that have controllers, it’s crucial that those individuals report to upper management regarding losses. On occasion, owners and other executive officers are not focused on losses until it has become an epidemic which requires drastic change. If officers and employees alike do not realize the impact of workers compensation cost on both the bottom line and employee morale, it can lead to a course that is very difficult to recover from.
It’s evident that workers compensation is a crucial coverage that unmanaged can result in costs well outside reasonable thresholds. By utilizing a broker with expertise in your industry, you can develop a relationship that will successfully propel your business instead of hindering it. We understand workers compensation, how to implement safety programs, how to close claims faster, and how to get you the best options available. While rates may be standardized, your final cost can vary significantly from agency to agency. Give us the opportunity to manage your workers compensation and let us prove how experience can benefit your bottom line.
