4 Ways to Reduce Workers’ Comp Costs


To many employers, workers’ compensation insurance is just another unavoidable cost of doing business and an expense that they have very little control over. However, controlling workers’ comp costs are not as difficult as one might think. Here are some common ways to improve your workers’ compensation premiums:

Setting up your safety program

In most cases, injuries can be prevented before they occur. Having a safety program helps you identify and eliminate workplace hazards that may cause accidents. Training and timely reminders should be constant in every employee’s work life. Being up to date with the latest OSHA regulations will keep things fresh in your mind. If you wanted an evaluation of your current safety program, getting a safety audit could be a great place to start.

Maintain the right attitude toward safety and your employees

Employees follow the leader. If they feel that you don’t take safety seriously, they won’t either. It’s crucial to hire high-quality employees who know what they are doing and that believe in making safety a way of life, not just a part of the job.

How can you attract high-quality employees? You can start with competitive wages, health benefits and maybe even a savings/retirement plan. Although, it might sound expensive, in the long run it will pay off in productivity, lower turn over, and in employees having a positive attitude- which in turn will lower your workers’ compensation costs.

When there is a claim, act quickly

Big or small the injury needs to be reported as soon as possible. Studies show that the longer a claim goes unreported, the more expensive the claim. Make sure to seek medical care for your injured employee immediately. Also, maintain contact with the employee and their medical provider during the recovery process. Light-duty work can be an option to the employee that is allowed to return to work with restrictions. Getting the employee to return to work, even if it’s on light duty, will motivate the employee to recover faster and return back to their regular position.

Institute programs to keep the workplace drug and alcohol free

The reality for employers is that drug and alcohol use can affect employees’ health and job performance. This can and will ultimately impact the safety in the workplace. In addition to costing the employer money, employees with drug and alcohol problems often have higher absenteeism. These employees are less productive and have more accidents and injuries. Within legal parameters, employers should test employees randomly for drug and alcohol use and then take the appropriate action to maintain the workplace safe.

CWI Underwriters is an independent insurance agent located in Fort Lauderdale, FL that works with the best workers’ compensation carriers in the state. Please give us a call so we can help you set up a program that works for you. Protect your business and employees and promote a safe work environment.