Today’s challenging economic environment calls for wise use of your business’s resources, smart cost-cutting measures, and a keen eye on the bottom line. Now is the time to refresh your knowledge about workers’ comp – controlling costs and knowing about compensation laws to avoid fines for failing to comply. Workers’ comp insurance costs have concerned business owners for a long time. Many states are taking steps to increase rates in an attempt of offset escalating health care costs, growing claim volume and shrinking state revenues. Though strong external forces are working against optical business owners, you can help take control of your workers’ comp insurance costs by following a few basic tactics:
Pay what you owe, when you owe it.
Why lend interest-free money to your insurance carrier? Pay this year’s premium based on this year’s wages. Any reductions in staff and hours worked should be factored into this year’s premium, not considered retroactively a year after you’ve paid. Waiting for the end-of-year audit to determine your annual premium can cost you dollars and restrict your cash flow.
Ask questions.
Whether you don’t understand a billing statement, aren’t clear about why your premium went up (or down), or can’t make sense out of coverage details, ask your agent or carrier representative. What you learn may do more than clarify workers’ compensation issues – it could also help you save money.
Enforce workplace safety practices
Picture courtesy of healthandsafetyuk consortium.co.
Your business’ safety record is a critical factor in determining workers’ comp premiums. Publish and practice safety methods, making certain employees abide by your workplace standards.
Source: Paychex Spotlight – November 2009, www.hsconsortium.uk.co
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