Small Businesses Can Use 8 Tips to Gain Control of Comp-Related Costs

The economic recession has affected small business owners. According to a recent survey by EMPLOYERS, a provider of workers' compensation coverage and other services, nearly half of small business decision-makers said it would take more than a year to get their firms to pre-recession levels.

EMPLOYERS recommended these eight strategies to control expenses related to workers' comp:

1. Require certificates of insurance. Small businesses should never hire another company unless that firm has a valid certificate for workers' comp coverage.

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2. Hire responsibly. Small business employers should take the time to find the right employees for the workplace and use tools like employment applications, reference checks, pre-hire drug screens, motor vehicle driving history, and background checks.

3. Establish a safety program. Develop policies, procedures and rules for workplace safety and health. Provide employees with the necessary training, proper tools and personal protective equipment to do the job safely.

4. Enforce safety rules. Businesses should routinely use workplace audits, safety meetings, toolbox talks and annual training to remind employees to work safely.

5. Provide immediate medical care. Prearrange medical facilities for employees in the event of a workplace injury. Be prepared to provide transportation for nonemergency injuries. Always require a postaccident drug test to be administered.

6. Report all injuries immediately. All injuries should be reported to your insurance carrier within 24 hours of the incident. Ongoing communication between the injured employee and the claims adjuster is extremely important.

7. Investigate all accidents and near misses. Small businesses should review accidents to assess what happened and take necessary steps to make sure it does not occur again.

8. Provide alternate duty employment. Employers should offer employees alternate duties if they are unable to perform their previous job functions when they return to work.

Read more at the WORKERSCOMP Forum^TM homepage.

April 12, 2010

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