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4 Must-Read Tips on How to Reduce Workers' Compensation Risk

Publish date: Fri, 27 Nov 2020, 09:53 AM
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Worker's compensation costs are escalating exponentially. Although there's no way to fully eliminate accidents, there are several steps a company may take to minimize the frequency and expense of such events. Organizations must foster a total safety culture in order to efficiently manage costs associated with employee injuries. 

Commitment to a total safety culture involves controlling the risks you have entering your organization, minimizing the risk factors and exposures that occur before an incident happens, and handling accidents effectively when they occur. The following are basic knowledge and best practices to help limit your exposure to the cost of employee compensation and to help ensure employee safety and health.

Employee Screening

The recruiting process is the initial point for an organization to reduce the likelihood of workplace injury. Employers should create clear job descriptions that outline physical qualifications and to help choose the best candidates for the job, using professional hiring managers. With the written consent of the applicant, employers can get an indication of possible risks through pre-employment screening in compliance with state and federal law. Useful background information may include criminal record checks, driving history, references, and checking for drugs and alcohol. Psychological tests are used by several organizations.

Make Safety a Priority

Create a written safety management policy if you haven't done so already. Better protection in the workplace leads to fewer lawsuits, and fewer claims directly impact the pay levels of the employees. A manual of well-written rules, procedures, and a description of the workers' comp process should be included in a safety program. 


Include it in the new orientation of workers, and post it in a place that is visible to all employees and accessible. Another protection policy is to provide workers’ compensation insurance. According to experts from, most employers are required to purchase workers’ compensation insurance to provide benefits to employees who are injured on the job. It is important to have the benefits package they deserve for their workers so that the organization can avoid discussion with a compensation attorney for employees. By being visible to staff and doing the rounds in the workplace, top management will show a dedication to safety.


Training and Education

Appropriate job training will help to ensure safe working habits. With daily safety training courses, workshops, and other workplace interactions, training objectives can be achieved. Above all, training efforts should express the value of occupational safety. Furthermore, it is equally necessary to educate supervisors and managers, investing a few dollars in management training will help you control the cost of workers’ compensation.

Safety Committee

The basic technique used by most businesses to create safety ownership and knowledge among workers is safety committees. Through management, these people are encouraged to prepare and take steps to monitor the scope of the worker's compensation claim. Successful safety committees are made up of staff from different levels within the business. It is important for members to agree on the priorities and goals of the committee. The committee's goals should be transparent, and its duties well identified. Advanced preparation is important to ensure the effectiveness of the committee.


A risk management plan that stresses prevention is key to minimizing workers’ compensation claims, and employers can begin by encouraging a culture of safety at every level of their organization. Don’t wait until a costly accident takes an economic and personal toll on your business.


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