Choosing More Coverage

Posted on: 28 December 2018

Running a small business can be incredibly rewarding, but many small business owners are continually looking for ways to reduce costs and operate according to a strict budget. If you're a small business owner who has employees working for your company, you will be required to have workers comp insurance. This type of insurance is designed to protect employees in the event that they are injured on the job. When you begin shopping for workers comp insurance, you may be worried about the quoted prices that you receive. Luckily, there are a number of ways to reduce the cost of your company's workers comp insurance. Use the following tips to help make your workers comp insurance policy more affordable.

Create a Safety Plan

Like any type of insurance policy, insurance companies assess the risk of providing a workers compensation insurance policy when they calculate the rates. One way that you can get lower premiums for your company's workers compensation insurance policy is by taking the time to create an in-depth safety plan. Depending on your industry, it may be worth the expense to hire a consultant to assist you. When you have a safety plan in writing, you can submit it to your insurance company when purchasing a workers compensation insurance policy. Having a safety plan will show insurance companies that you take preventing injuries seriously, making your company a lower risk to insure.

Take Substance Abuse Seriously

If an employee is under the influence of drugs or alcohol while at work, there is a higher chance that he or she may make a mistake or a poor decision that can lead to a workplace injury that results in a workers comp claim. You may want to consider making your company a zero-tolerance workplace for any type of substance abuse. Mandatory drug testing before a person is hired and strict rules about being caught under the influence while on the clock will reduce workplace injuries, and your insurance carrier may offer a discount on premiums since they know that your company will not employ employees who use drugs and alcohol at work.

Work with an Insurance Broker

Buying a workers compensation insurance policy for a small business is quite a bit different than purchasing an auto insurance policy for a single vehicle. If you want to save money on workers comp insurance while also ensuring that you have the best policy, it is always a good idea to work with an insurance professional. An insurance broker will be able to search for policies and help you buy one that is affordable and works with your budget.