When calculating premiums for workers compensation insurance quotes for your small business, underwriters take into consideration your company’s experience modification rate (EMR). This compares your company’s annual losses in insurance claims against those of similar businesses and multiples your EMR by your base rate to determine your premium. An EMR of 1 is average. If you’re over or under the average, your premium is adjusted accordingly. So anything you can do to prevent workers compensation claims and achieve a lower EMR is one of the best ways you can control the costs of workers compensation insurance for your small business. Here are some tips to do that.
Prevent Workers Compensation Claims for Lower Premiums
A proactive consistent on-the-job safety record tells insurance companies that your business is a good risk. As such, you’re far more likely to get competitive quotes for workers compensation insurance.
- Have a written safety policy that is updated frequently.
- Increase employee awareness of the importance of on the job safety with regular meetings, reward programs, etc.
- Practice what you preach. Let employees see management actively adhering to and enforcing the company’s safety policy.
- Assign a trusted employee to monitor on-the-job safety and seek out potential risk exposures. These can and should include hazards from walking, sitting and standing conditions, repetitive motion, lifting and moving, as well as structural hazards that someone could tip over, run into or trip on.
- Review your company’s past and current claim history to identify areas of high risk and potential trends.
To learn more about how to save money on your workers compensation insurance please see our other articles in this series: How to Save on Workers Compensation Insurance for Small Business, Part I; How to Save on Workers Compensation Insurance for Small Business, Part III