Don’t make these potentially costly mistakes.
Most small business owners view workers compensation insurance as a necessary evil. They secure this coverage because they are legally obligated to, but they do not give this important of coverage much thought. That is, of course, until they need to access it or are suddenly hit with an increase in their rates. Rather than this attitude, business owners should view workers compensation as an important management tool and learn how they can maintain low rates to ensure long-term savings. To help, here are some of the mistakes that you should avoid to keep workers comp costs down.
Mistake 1: Not Understanding Workers Compensation Insurance
Oftentimes, business owners know that they need to have workers compensation insurance, but their knowledge ends there. When it comes to workers compensation insurance, this ignorance can end up costing you dearly. Before you even attempt to secure this coverage, you should do some research and learn what workers comp covers, your state’s workers compensation laws, your business’s filing status, and so on. Doing this research will ensure that you secure the right amount of coverage for your business and will also ensure that you are following the proper protocols. This will help you avoid legal and claims issues down the road.
Mistake 2: Assuming That Employers Cannot Control Workers Compensation Costs
Some business owners view workers comp insurance costs as something outside of their control. However, business owners can do many things to keep these insurance costs down. For instance, initiating stricter hiring policies, enforcing employee safety training programs, and conducting workplace safety checks are all steps that employers can take to reduce their risk for employee injury. As decreased risk will translate into lower insurance rates, business owners should ensure that they are employing measures to protect their workers.
Mistake 3: Not Learning from Prior Claims
Business owners that do not make changes after a workers compensation claim event are setting themselves up for failure. By refusing to change their business practices, business owners are setting themselves up for the same accident to occur again. This lack of effort will drive up the cost of subsequent claims significantly. Rather than falling into this trap, you should learn from previous claims and make changes that ensure that the same scenario does not happen again. Avoiding claims will naturally keep your workers compensation costs down.
These are some of the costly mistakes that business owners need to avoid when it comes to their workers compensation insurance. Do you have further questions regarding your business’s commercial coverage needs? Then turn to the professional team at PMC Insurance Group. Contact us today to learn more about getting competitive coverage for your small business clients.