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Reducing Workers’ Comp Costs for Small Businesses

Reducing Workers’ Comp Costs for Small BusinessesSmall businesses might have a more personal approach to work, but they are not immune to job safety hazards. In fact, these incidents can have a huge impact on a small business’s bottom line. Without the necessary resources and employees to get the job done, Small Business Workers’ Compensation claims can have a huge impact on the operation. With that in mind, let us take a closer look at how small businesses can be proactive about controlling and reducing these costs.

Identifying who is at risk.

A five-year analysis of Hartford’s claims data found that there is a 50% chance a small business will experience a claim in the next 10 years. The study found that the industries with the costliest claims are as follows:

  • Construction: $32,000.
  • Transportation and public utilities: $31,000.
  • Finance, insurance and real estate: $29,000.
  • Wholesale trade: $28,000.
  • Services (hotels or professional services such as legal, health and engineering firms): $27,000.

Fostering a safe work environment.

First, conduct safety audits regularly to identify and mitigate known risks. Hazards can be reduced, if not eliminated, if they are stopped before they occur. Next, implement proper training programs. Employees won’t know and understand their risks and how to prevent them if they aren’t properly trained. New employees are naturally more prone to accidents, so ensure there is at least a manager on site to oversee all operations.

Next, implement proper housekeeping practices. From safe chemical and food handling to cleaning up spills immediately, these simple efforts can mean the difference between a costly claim and avoiding one.

Lastly, maintain clear open spaces around equipment and materials being handled or lifted. Easy access allows workers to get closer and reduces reaching, bending and twisting, explains Property Casualty 360.

With a 50% chance of experiencing a claim, your business cannot afford that risk. Take this advice into consideration and obtain the right insurance to provide the financial and legal peace of mind you need.

About ASIA Workers’ Compensation

Workers’ Compensation insurance is required in most states, but that doesn’t mean all coverages are created equally. An experienced carrier with aggressive claims management can reduce the overall costs to the business and get the employee back to work in a timely manner. Associated Specialty Insurance Agency, Inc. has been “The Workers’ Compensation Specialist for Brokers and Agents” for the past two decades and is committed to providing brokers and insurance agents across the East Coast with expertise and services to develop a Workers’ Compensation policy. For more information about how we can assist you with claims management, anti-fraud measures, and more, call (610) 543-5510 to speak with one of our professionals.

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