There are many challenges facing all small businesses, especially in today's economic climate.
Lowering the cost of doing business is key to any company's survival and success.
One big expense that most companies out there is legally obligated to endure is workman's comp insurance.
Because the rates for workman's comp coverage are so high, reducing them is to the best interest of every business out there.
Below is a description of three great ways to reduce your company's workman's comp rates.
1) Instill a safety education class.
No matter what job your employees perform, teaching them how to do it safely will not only help to protect them, it will also help to lower your rates.
Each state has a workers compensation board that determines rates.
They give big discounts for those who run safety courses for their employees.
2) Keep your safety record good.
The board will also look at the safety record of your company.
How many employees have made claims in the past and what was the total payout for those claims? The total payout will be the amount of medical bills and indemnity payments.
(Indemnity payments are the ones made to an injured employee to make up for the wages they lose while being unable to work due to the injury.
) The better your company's safety record is, the less you will pay per employee.
3)Offer medical insurance.
Company's that offer good medical insurance to their employees receive discounted rates on their workers compensation coverage.
Of course, the amount of the discounts offered will vary from state to state.