As an employer, you cannot avoid having workers compensation insurance. All 50 states require employers to carry some form of workers compensation insurance. However, there are many ways you can control and reduce the premium that you are required to pay for your business's workers compensation insurance. One way to do that is by staying out of the assigned-risk pool.
Behaviors That Put You In The Assigned-Risk Pool
Your business can land in the assigned-risk pool with workers compensation insurance companies by either having a very poor safety record riddled with infractions or by running a business that has an extremely high degree of risk. When you exhibit these behaviors, you end up having to pay higher premiums for necessary insurance coverage.
It's kind of like if you drive a car with a poor safety rating, have a lot of tickets, or have been in a lot of accidents, you'll have to pay a higher premium to get the car insurance that you need. The same goes for workers compensation insurance -- if your business engages behaviors that insurance companies deem to be risky, you'll end up paying for it.
How To Avoid The Assigned-Risk Pool
If you want to keep your workers compensation premiums at a reasonable level, the first thing you need to do is try your best to avoid ending up in the assigned-risk pool to begin with. However, even if you find yourself in the assigned-risk pool, you can take steps to show your insurance company that you are doing everything that you can to lower your risk, just like you can take steps after getting a ticket or being in an accident to show your car insurance company that you are still a good driver.
One of the best ways to avoid the assigned-risk pool or to show that your company no longer belongs there is to make workplace safety a top priority for your business. Since workplace safety is the biggest factor that your insurance company is looking at, it makes sense to prioritize that. You can show your insurance company that you are working to minimize the risk of workplace injuries by doing any of the following:
- Provide every employee with a workplace safety manual that includes specific rules and safe working instructions that has been crafted to specifically address the needs of your business and workplace.
- Provide each employee with training on the workplace safety manual. Since it can be easy for employees to forget about certain safety procedures, require all of your employees to attend a brush-up training every six months.
- Provide rewards and incentives to employees who you see demonstrating safe work behavior. Show your employees that you value a safety-based culture.
- Keep safety procedures hung up in visible locations where they will be used and seen.
- Regularly go over safety procedures during weekly or monthly staff meetings.
Engaging in the behaviors listed above are just a few ways to show your insurance company that you are serious about creating a lower-risk workplace. Keep in mind that you are going to need to document every step you take to reduce the risk your employees face and you are going to have to provide your workers compensation insurance company with that information in order to potentially lower your premiums.
For more information, visit http://www.collinginsurance.com/ or a similar website.Share