Ten Things Insurance Agents Can Do to Help Employers Manage Workers’ Compensation Costs

A Workers’ Compensation Update

There are over 4.1 million workplace injuries in the United States each year according to the Occupational Health and Safety Administration (OSHA).  Employers spend about $155 billion on work-related injuries each year.  There is no doubt workers’ compensation is a big expense for employers.

The good news is there are many actions an insurance agent can do to help employers reduce their workers’ compensation costs.  These include:

1. Search the market for options and program designs that fit the individual needs of each employer.
2. Help build a bridge between the insurer and the business.
3. Educate employers about how workers’ compensation works.
4. Work with employers in the development of a safety program.
5. Analyze all classifications to make sure they are correct.
6. Help the company prepare for the workers’ compensation premium audit.
7. Provide the framework for an early return to work program.
8. Help the company review accidents and claims to determine trends, and then create safety solutions.
9. Facilitate a claims review with the insurer to make sure all claims are being processed correctly.
10. Be a resource to the business when bringing in other service providers to solve problems, i.e., attorneys, safety professionals, and third-party claims consultants.

Workers’ compensation is an important part of your business insurance program. State law requires that businesses have workers’ compensation insurance.Business owners go to great lengths to provide a safe working environment for their employees.  Workers’ compensation continues to be a significant cost driver for most employers, and understanding all the factors that can drive workers' compensation costs can often be complex and time consuming.