How Can Your Colorado Business Lower Its Work Comp Premium?
If your Colorado or Denver company has employees you are required by the state of Colorado to carry workers compensation. The premiums are determined by your class of business, type of work each employee is performing, payroll associated by each employee, and the historical claim history of your business. If you have had a large claim you understand that your premiums can increase significantly following the claim. Below is an article from ehstoday.com that outlines a few steps your company can follow to lower premiums. Some highlights include:
Make Safety a Priority
If you have not done so already, develop a written safety control program. Better workplace safety leads to fewer claims, and fewer claims directly affect your workers’ compensation rate.
A disciplinary program also should be incorporated into the safety program, one that holds employees accountable for breaking the rules or rewards them for correctly following safety procedures.
A critical component to success is that the program needs to be endorsed by top management to ensure proper execution. Managers and lead workers should be assigned various responsibilities for safety enforcement in each work area.
Holding regularly scheduled safety meetings and/or discussions about specific issues related to the work environment will convey the importance of safety at the company and the expectations to comply.
Take Action When a Claim Occurs
When an employee experiences an injury on the job, complete an accident report with as much detail as possible. Take photographs of the scene and talk to any potential witnesses about what happened. The first report of injury should be sent within 24 hours to the insurance company to ensure prompt handling and to help fight fraudulent claims.
A drug test should be required of the employee. While a positive drug test will not allow you to deny a claim in most states, it will certainly help. (You also might consider conducting random drug testing for all employees. Be upfront about telling all potential employees that submitting to random drug tests is a requirement for employment, which should decrease any potentially drug-related claims.)
Be Aware of Possible Fraud
If you suspect fraud, immediately inform the insurance company. Review your policy for accuracy of the claim. Realize that sometimes it pays to investigate what you suspect is a fraudulent claim.
For example, a worker who filed a claim for a bad back was later photographed digging out a tree stump. It’s unlikely the employer could have won the suit without the photographic evidence.
For the entire article please click on the link below:
http://ehstoday.com/safety/best-practices/ehs_imp_37978
If you have questions on your workers comp policy or if you would like to discuss any of your business insurance needs, please give Orcutt Insurance Group a call 303-233-2828 or visit our work comp overview page.
Thank you for your consideration.
The Orcutt Group Team