Atlas Plus Insurance Solutions understands the pressure placed on California business owners when compulsory expenses, such as workers’ compensation insurance, are on the rise. There are number of issues related to workers’ compensation coverage that are either unknown to most, or easily misunderstood; however, when business owners recognize that workers’ comp costs are not fixed, they become open to addressing the real drivers of rising premiums.
While you may not be able to skimp on workers’ comp coverage, there are some practical ways for small business owners to limit the number of claims, optimize their operation, lower premiums and reduce risk for immediate and long-term savings. Here are seven tips and seven terms that will help you reduce occupational risks and manage your workers’ compensation insurance:
7 Tips for Reducing Workers’ Compensation Costs
- Establish a healthy, safe work environment and employee culture
- Make your employees partners in maintaining and being accountable for on the job safety through comprehensive training programs and incentives
- Hire new employees who value safe behaviors to prevent a potential workers’ compensation claim in the future
- Create an early-intervention medical management program with pre-qualified specialists to assist injured workers and prevent adverse claims
- Correctly record and submit all workers’ comp claims within 24 hours and follow up with all parties – injured employee, HR, medical personnel, insurance agent, etc – in a timely manner
- Design a return-to-work program for a smooth transition back to work and reduce long-term payouts
- Annually review workers compensation insurance, claims and risk factors with your insurance agent to forecast future expenditures or savings
7 Workers’ Comp Terms Every Small Business Owner Should Know:
- Average Daily Wage – The average daily earnings of each employee used to determine entitlement to wage loss benefits
- Permanent Partial Disability (PPD) – These are benefits paid to an employee who has sustained a permanent, but not total, disability
- Permanent Total Disability (PTD) – These are benefits paid to an injured employee who is permanently and totally disabled from work
- Social Security Disability Benefits (SSDI) – These are benefits paid to a disabled individuals through the Social Security Administration. There are some restrictions or provisions on injured employees receiving both workers’ comp benefits and SSDI benefits at the same time
- Temporary Partial Disability (TPD) – These are time limited benefits paid to an injured employee who is able to work despite their injury, so the employee may offset wage losses
- Temporary Total Disability (TTD) – These are time limited benefits paid to employees whose injuries render them totally disabled and unable to work until healed and functional
- Vocational Rehabilitation (VR) – Vocational rehabilitation or Occupational Rehabilitation generally includes a variety of services – skill assessments, job search assistance, vocational education, etc. – offered to injured employees to help them return to work.
Atlas Plus Insurance is a leading provider of Workers’ Compensation Insurance. Our experienced agents will collaborate with leading insurance carriers for the best competitive pricing and policy designed to fit your business while providing you with a comprehensive risk management program to reduce your worker’s comp costs so you can get back to running your business.