Workers compensation insurance provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work. This coverage is required by most states and can be the most expensive line of insurance for most employers. In addition to the cost of workers compensation insurance, there are a variety of indirect costs that can impact your profits when employees are injured at work. The following graphic illustrates the direct and indirect costs of workers compensation claims.
Reducing Costs with an Effective Safety Culture
Developing an effective safety culture can help reduce workplace injuries and reduce direct and indirect workers compensation costs. Here are a few key things you can do to improve your safety culture:
Establish a written safety program.
Your safety program should include training on preventing workplace accidents and injuries as well as incentives for maintaining an accident-free environment. Getting commitment from management and employees is key.
Be selective in your hiring process.
Choose new hires who share the same safety culture values. Provide accurate job descriptions to job applicants, obtain previous work references, and conduct criminal background checks. Also, conduct a pre-start post-offer drug test and obtain a motor vehicle report (MVR) for new hires.
Reduce human error.
Ensure employees know the correct methods and procedures to accomplish their work responsibilities. Require employees to demonstrate skill proficiency before performing tasks on their own.
Prevent accident recurrences.
Investigate and document every injury and near-miss. Identifying why and how the accident occurred and making proper corrections can help prevent future incidents. Contact us to learn more about risk management resources to support your safety efforts.