Are Rising Workers’ Compensation Costs Impacting Your Business?
Workers’ compensation insurance rates increased an average 3.7 percent in 2012 as a result of rising claims costs and underwriting standards tightening. The price increases average in the range of 3% to 7% annually.
Many construction and manufacturing business are feeling the impact. InsuranceJournal.com published an article indicating that controlling workers’ compensation costs is a primary insurance concern for employers. The findings were from the 2012 P&C Workers’ Compensation & Safety Survey. According to the survey, 48 percent reported a workers’ compensation premium increase in the past year, while 28 percent reported a decrease and 24 percent said their premiums stayed the same.
What Can You Do?
Participants in the study indicated the most effective measure they took to control workers’ comp cost was to adopt a safety-minded culture. Another highly effective way to help control costs is to implement a light-duty or return to work program. Other cost-cutting initiatives include onsite accident evaluations, loss prevention evaluations, zero-accident goals, having a dedicated claims manager, safety committee efforts, and using a preferred occupational medicine facility.
The insurance brokerage, Barney & Barney LLC, suggested the best way to mitigate this increase in future years is to implement the following measures:
- Improve loss control and safety programs
- Regular review of open indemnity work comp claims for reserve accuracy and appropriate claims management
- Institute a formal return to work program
- Hold regularly scheduled and mandatory safety meetings
- Implement an accident investigation and review process
Using temporary workers instead of adding permanent employees is another way you can control costs because it shifts the workers’ compensation expense to the staffing company.
If your business can benefit from a more flexible workforce, or if you need the expertise of an experienced construction staffing company, don’t hesitate to contact us or call 1.866.532.6777. See how we have helped other contractors.
Construct Corps’ unique centralized recruiting/qualification systems allow contractors to utilize a local workforce in almost any
location at price that fits their budget. Go to http://www.constructcorps.com for more information or call 866.532.6777.