When most business owners look at their annual expenses, workers’ compensation coverage likely rates low on their list of concerns. This type of coverage, although required in most states, is often just considered to be another expense that is necessary to keep the business running smoothly. And it comes in handy when one of your employees is injured on the job. Workers’ comp insurance is designed to cover the cost of medical bills, lost wages, and even death benefits when an employee is injured or falls ill after a workplace accident. It can be helpful to protect not only your employees but your bottom line as well.
However, when you’re looking for ways to cut back on expenses during leaner months, workers’ compensation insurance may seem like more trouble than it’s worth. So, how can you stay in compliance with Colorado state laws and still save on your workers’ comp coverage?
Is it Possible to Lower My Workers’ Compensation Costs?
While there are very few exemptions, all private and public employers in the state of Colorado are required to carry workers’ compensation insurance. Additionally, your workers’ compensation rates are determined by a classification system where employers within the same industry are assigned the same classification—as long as they perform similar functions.
Because these rates ultimately reflect occupation risk or the likelihood that your staff members will be injured on the job, these costs are typically much higher for some businesses than others. For example, if you run a roofing company, you’ll likely pay a higher workers’ compensation rate than someone who operates an accounting firm. Unfortunately, there isn’t anything you can do about state laws or the rates determined for your company. But that doesn’t mean there aren’t other ways to save.
Which Factors Can I Control?
Your Insurance Agency
Working with an independent agent to find the most comprehensive policy at an affordable price is always a smart move. Because independent agents aren’t contracted to represent a single provider like captive agents, they can help you to compare workers’ comp insurance quotes from multiple providers all under one roof. Additionally, as members of your local community, your independent agent is available to act as an unbiased advisor, helping to explain your coverage options, look for discounts that you may be missing out on, and guide you through the claims process as well.
Put Safety First
Cultivating a culture of safety first within your workplace is the best and most effective way to reduce employee injuries. And while accidents will always happen, when your team members are trained to react appropriately, you can prevent most workplace injuries from ever taking place. In fact, research shows that for every dollar an employer invests in safety training, they will see $2 to $6 in return.
Implement a Return-to-Work Program
Return-to-Work programs are vital for businesses that are looking to retain valuable employees and cut back on their overall workers’ comp costs at the same time. This type of program is ideal for helping injured workers return to work as soon as they are medically able following an accident, even if they must do so in a limited capacity.
Contact Hopson Agency Today
Interested in learning more about how you can cut back on your business insurance costs? At Hopson Agency, we’re always here to help explain the insurance process. Call (303) 460-9906 or contact us today for more information.