Ways to lower your workers comp costs

Start with accurate information

The easiest savings come from getting the basics right. Make sure every employee is in the right class code, payroll is split correctly, and overtime premium is left out where your state allows. Review your experience mod worksheet for mistakes. Never underreport payroll or misdescribe your work to save money. That is insurance fraud and can lead to large back bills and criminal charges.

Prevent injuries

Fewer claims mean a better mod and lower premiums over time.

• Train new hires before they start risky tasks. New workers get hurt more often.
• Find out what causes your most common injuries and fix those first.
• Use OSHA's free and confidential On-Site Consultation Program, which is separate from OSHA enforcement.
• Put a written safety plan in place and name someone to run it.

Manage claims well

Report every injury to your insurer right away. Stay in touch with the injured worker. Offer light or modified work that fits the doctor's limits. Claims that stay medical-only count far less in the experience mod than claims with lost wages.

Ask about credits and programs

Many states and insurers offer savings, such as:

• Credits for a certified safety program or a drug-free workplace program.
• Small deductible plans, which many states allow.
• Return-to-work help. Washington's Stay at Work program, for example, pays State Fund employers back for part of an injured worker's light-duty wages.
• Ohio offers safety grants that match employer money for equipment that reduces injuries.
• Dividends or group programs through trade associations.

Shop and compare

In most states, insurers can set their own rates, so prices can differ. Have an agent compare several insurers using the same payroll and job details. If you are in the assigned risk market, ask each year whether a regular insurer will now take you.