10 Tips for Reducing Workers’ Compensation Costs

Rising workers’ compensation costs are among many employers’ greatest concerns, as large-dollar claims against companies—especially those who employ hourly, blue collar workers—continue to rise. While the laws regarding workers’ compensation benefits vary from state to state, all but one state requires mandatory coverage for private employees. Generally, these mandatory benefits include medical bills, compensation for lost time from work, and permanency benefits for the residual effects of a work related injury. Interestingly, medical services provided on a workers’ compensation case are typically billed at a much higher rate than Medicare, state provided health coverage such as Medicaid, and even private group health insurance. Because of this and other factors, the cost of doing business has taken a significant toll on both the traditional “mom and pop” small employer and large corporations in certain states. While workers’ compensation coverage is a necessary expense for businesses, there are also many indirect costs of on-the-job injuries and accidents, which go beyond your insurance costs. This may include training replacement employees, investigating claims, repairing damaged equipment and property, and implementing corrective measures. Plus, your business may lose productivity and be forced to deal with lower employee morale. When it comes to lowering your losses and reducing the total cost of risk, many businesses don’t know where to start. Watch the recorded webinar to see EPAY Systems and Knell, O’Connor, Danielewicz explore 10 ways to reduce workers’ compensation costs.