Straight Talk About Workers Comp

You can control your workers compensation premiums

Straight Talk About Workers Comp Employers pay more than $25 billion in premiums every year to provide workers compensation benefits.

It probably comes as no surprise to you that the premiums employers have paid for those benefits doubled in just one decade, and premiums will continue to rise unless additional reforms are enacted and you become involved in controlling your costs.

You do have choices, and this brochure outlines several ways you can control your workers compensation premium.

Consult your Professional Insurance Agent for advice on these and other measures.

Workplace Safety Pays Off

Create a workplace safety program to reduce the frequency and severity of injuries. A good safety record will not only save money on premiums but also make your employees more productive and improve morale.

Work with your Professional Insurance Agent , your insurance company and your employees to identify and eliminate workplace hazards.

Start a management-employee safety committee to monitor workplace safety and create written procedures. Reward employees for good safety records.

Control Your Payroll

The allocation of your payroll affects your premium. Talk to your Professional Insurance Agent about how to minimize your cost through utilization of standard exceptions such as:

Executive
Clerical
Drivers
Sales
Messengers

Get In The Right Governing Class

Accuracy pays. Insurance companies place businesses and employees into rate classes based on the type of business in which the employer is engaged. Not all employees of a business necessarily must be assigned to the same governing class (see above).

Work with your Professional Insurance Agent and insurance carrier to make sure your business and workers are properly classified.

Root Out Fraud Early

Most states give employers a limited time to challenge fraudulent workers compensation claims. You need to know your state's laws.

Notify your insurance agent immediately if you suspect that a claim is fraudulent. A good claim record will keep your premiums down.

Show Concern For Injured Workers

Stay in contact with your injured employees. Visit them. Let them know that you're interested in helping them make a full recovery.

Genuine concern encourages employees to return to work more quickly than they might otherwise do. A more rapid return to work, in turn, reduces costs.

Concerned employers are less likely to have injured employees who seek expensive, attorney-involved settlements.

Shop For The Best Value

Insurance companies vary in both service and the prices they charge. Work with your Professional Insurance Agent to obtain the best overall value.

You need an insurance company that pays claims promptly and helps you maintain a safe workplace.

Join A Safety Group

Employers in the same industry often work with insurance companies to pool premiums in order to reduce costs.

Groups with good safety records may also receive premium discounts and dividends.

Your Professional Insurance Agent may be able to assist you in finding the right group for your business.

Lobby For A Better System

You can help reduce costs by getting involved.

Use your influence to reform workers compensation laws and regulations to achieve fair solutions to real problems by keeping in touch with your legislators.

Work to control medical costs, reduce frivolous lawsuits, improve claim handling and discourage fraud.

Call your local business association or a trade association to find out how you can get involved and make a difference.

For many employers, safety, sensible reform and elimination of fraudulent claims are the only hopes for long-term relief from rising workers compensation premiums.

About Professional Agents

When you see the letters PIA on your insurance agent's business card, stationery, or advertisements, you know right away that he or she is a Professional Insurance Agent.

But those three letters represent more than an affiliation with a national organization of experts on insurance. It means the Agent is your personal insurance advisor -- someone you can count on and trust for good advice, someone who protects your assets.

Your Professional Insurance Agent can save you money and find the coverage that best meets your business needs. He or she will also update coverage as your needs change and explain your insurance in language that is easy for the layman to understand.

Look for the letters PIA. It pays to use a professional.