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How to Reduce the Cost of Workers Compensation Insurance

How to Reduce the Cost of Workers Compensation Insurance
How to Reduce the Cost of Workers Compensation Insurance

Taking care of your workers is an important part of your responsibilities as a business owner. This means looking out for them in both good times and bad, as being left with no income after suffering an unfortunate injury at work can be detrimental to employees of all levels.

To ensure employee safety and security, all businesses are required to have workers compensation insurance by law. While this is a deservedly vital part of any company, the financial aspect cannot be ignored. Whether you have a small labour hire business, or run an expansive mining or logistics company, you're likely highly aware of the direct cost of workers compensation insurance premiums.

The indirect costs involved can end up becoming a higher financial strain due to expensive corrective measures, poor morale, and absenteeism. The following guide advises the best ways to reduce costs associated with on-the-job accidents and injuries.

What exactly is workers compensation?

Before taking important steps to reduce expenses related to workers compensation insurance and employee claims, it's important to understand exactly what it is. Workers compensation gives financial assistance to an employee who has suffered injury or illness in the workplace. Designed to help both employees and the employer, the insurance can cover medical costs, long-term care, lost wages, and expenses following a death.

Workers compensation insurance is required by law for all Western Australian Businesses, with rates determined on industry and safety records, or history of injuries. Any company without this insurance is liable to pay all benefits owed to a worker injured in the workplace, as well as potential legal fees should further action be taken.

Securing workers compensation claims management from an experienced provider, like Connect Business Insurance, ensures quality processes are in place for long-term assistance with both cost reduction and secure coverage.

Do your research

Understanding and controlling costs surrounding workers compensation is essential to managing your bottom line, while keeping your employees safe. Spending time researching all options available for workers compensation insurance in Perth is key to making an informed decision. With so many choices available, it's important to work with specialist insurers capable of offering a custom service suited to your industry.

Even a minor accident or injury can set your business back, making it imperative to work with experienced insurance providers who can advise on best workplace safety standards, and avoid common hazards. With extensive experience working closely with companies across makore WA industries, from construction and engineering to logistics and mining, Connect Business Insurance offers tailored services to suit your specific needs.

Work safety programme

Implementing a clear written safety programme is an important step for two reasons. Firstly, it gives employees strict guidelines to follow and shows there is a company emphasis on safety. Secondly, it shows insurance providers a commitment to creating a safe workplace, where all Workplace Health and Safety (WHS) laws are strictly followed.

By creating regular, mandatory safety training and enforcing the rules, you can heavily reduce the number of employee accidents each year, and therefore the amount of compensation claims. Many workplace accidents and injuries can be avoided, and the ROI for having quality safety programs is well documented.

An effective safety programme needs to exist in the real world as well as on paper. Make it a priority for management to set an example and enforce safety standards, and involve employees in all aspects of the programme to increase commitment. Scheduled training is just as important as hazard identification and prevention, as is continuous improvement of each area of workplace health and safety.

A culture of safety

Only by involving your employees, and encouraging them to follow the correct processes for accidents and injuries, will the workforce benefit from work safety programmes and reduce workers compensation claims. Early reporting of incidents and correctly following safety procedures is key, and guidance must come from senior leaders and management.

Intervening early and acting on safety reports is vital to addressing concerns, avoiding accidents, and minimising claims. Working with an experienced insurance partner at Connect Business Insurance for workers compensation claims management ensures a valuable culture of safety is created, reducing both direct and indirect costs of workplace accidents.


Classify jobs clearly

One important step is to make sure each employee has carefully designated duties linked to a specific job role. This reduces the risk of someone carrying out a task outside their area of expertise, and potentially having or causing an incident.


Create a solid return-to-work programmes

Completing a financial year with zero accidents or reported incidents is nigh-on impossible, no matter how airtight your safety programme is. In the event of an accident resulting in injury, implementing an effective return-to-work programme is an important way to close a workers compensation insurance claim as soon as possible, in a manner that benefits all parties involved.

The longer a claim stays open, the higher the cost to the business. Enabling a sick or injured employee to return to work as soon as possible - even in a part-time capacity - is a valuable way to reduce replacement income and other indirect costs from having someone out-of-work. As long as professional medical advice is followed, a return-to-work programme can allow employees to remain involved while still recovering, lessening the likelihood of an expense prolonged absence or never returning to work.


Expert knowledge and advice

One critical area of reducing all costs surrounding workers compensation insurance is having a proactive strategy in place to handle claims processes, and the culture surrounding it. The most effective way to do this is by working with experienced, local insurance providers who know the state regulations and industries well, and are capable of quick intervention and efficient claim processing.

With long term experience providing custom workers compensation insurance to key WA industries such as mining, construction, and aviation, the team at Connect Business Insurance are perfectly placed to advise on preventing unnecessary costs, resolving potential claims and helping retain important workplace members.


Complete cover with Connect Business Insurance

Operating a business while managing all HR and insurance obligations is not an effective way to achieve financial success. Working with experts in the field of business insurance at Connect Business Insurance is an investment. By placing a focus on quality WHA practices and the wellbeing of your employees, safety risks are reduced and potential claims and minimised.

As knowledgeable workers compensation insurance providers, we guarantee complete focus on expediting compensation claims, and doing our utmost to prevent costly protracted processes. Our goal is to provide your business with the tools to run a secure workplace with safe, content employees. For more information on workers compensation insurance, or for any queries around our workers compensation claims management, simply get in touch today.

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