4 Tips for Lowering Workers’ Compensation Claim Costs
The process of filing a workers’ compensation claim is challenging and complex, but you, as an employer, can take measures to reduce the cost and simplify the process. Employers who take preventative measures to reduce injury and illness rates can save themselves time, money, and hassle when it comes to workers’ compensation claims. If such injuries or illnesses do occur on the job, it’s not too late! You can still take several steps to reduce costs for workers comp claims and keep your low cost workers comp insurance while still protecting your employees and your business. The first step is to arm yourself with information so that you can most efficiently (and cost-effectively) report and manage workers comp claims.
The Nowell Agency is consistently one of the top workers comp insurance companies and we’ve seen it all! We’ve gathered knowledge and information during our 30+ years of helping employers with workers comp insurance claims. Here, we share our expertise about how to keep workers’ compensation claim costs low.
Cost of Workers Compensation
The worker’s compensation cost statistics are staggering but you don’t have to be one of those stats! With our helpful tips on how to save money on workers comp claims, you can avoid the stress that comes with injured employees and rising costs.
1.Report a workers’ compensation claim quickly.
The deadline for submitting reports of employee injury and illness varies depending on how you are insured. If you’re self-insured, you must report injuries and illnesses to your state workers’ compensation division within that state’s designated time frame which is usually 14 days. This does vary by jurisdiction, so be sure to check with your particular division.
If you hold a workers’ compensation policy with an insurance carrier, the time frame for reporting injuries and illnesses is typically seven days. Again, this time frame varies depending on your state and insurance company. Consult your insurance provider to find out your workers comp reporting deadline.
Ultimately, you’ll save money on workers’ compensation claims with prompt reporting. Fines can result from the state workers’ compensation division for late reporting and you may face increased workers compensation insurance prices if you don’t meet your carrier’s deadlines.
2.Submit a workers’ comp claim for everything, no matter how small.
Workman’s comp insurance cost is also kept lower by reporting any and all injuries or illnesses your employees encounter on the job, regardless of their severity. You will be asked to provide information about where medical treatment was provided and what it consisted of, if applicable. The first report of injury is a critical one even if employees did not receive medical treatment; it doesn’t mean they won’t need to in the future. If medical attention is necessary after the initial report, simply contact your carrier or state division.
Reporting ALL injuries or illnesses keeps you in compliance with workman’s comp rules and regulations and is also a good practice to avoid facing problems down the road if the condition worsens. An added bonus of consistent reporting is that it keeps the price of workers comp insurance low!
3.Avoid paying out of pocket for medical treatment of employees. Although it seems counter-intuitive, this will actually save you money in the long run. Some employers pay for an employee’s medical treatment out of pocket instead of reporting it to their workers’ compensation carrier, believing it will raise their costs. This is a misconception because medical-only claims do not increase your premium; in most cases these claims will have a minimal effect on your experience modification factor. What increases a workers comp insurance premium? The worst injuries are those with high costs and time. The more severe the claim, the higher the e- mod factor, leading to a higher insurance premium.
Employers that fund medical treatment out-of-pocket should be cautious of the legal implications and potential financial consequences associated with this decision. Not only would you be breaking workers compensation laws but you also take the power away from the insurance carrier. When they have no part in the history of the claim, they are unable to pay for related costs, which leaves you holding the bag for everything. This could lead to your bankruptcy, fines, legal action, and more–all because this case was never reported properly from day one! Avoiding all of this lowers costs of workmans comp claims and insurance in the long run.
Best Workers’ Compensation Insurance Company
Call one of our offices near you to schedule a meeting with a knowledgeable and experienced broker at The Nowell Agency about obtainingworkers comp insurance in Mississippi. You can also request a free workers comp insurance quote online. We’re here to help protect your financial future!
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