Reducing worker comp costs

Workers’ comp is a fast growing expense across all industries, with rates ranging from five to 40 percent of payroll in 2004, depending on the state, according to the National Federation of Independent Businesses.

Workers’ comp claims covering employee medical bills, payment for lost time and injuries can be reduced by following these guidelines:

* Develop a safety control program that disciplines employees for breaking the rules.
* Hold regularly scheduled safety meetings to convey the importance of safety and complying with the rules.
* Provide employees with the proper PPE and reengineer the work environment to prevent back strains, carpal tunnel syndrome and repetitive stress injuries, the most common workers’ comp claims.
* Complete accident reports quickly to ensure prompt handling by insurance companies.
* Conduct drug tests on employees, which limit coverage if they test positive.
* Immediately inform the insurance company if you suspect fraud. (Insurance companies estimate that at least 20 percent of workers' comp claims are fraudulent.)
* Make sure your employees know the proper way to report an accident.
* Make sure your employees understand that you expect them to return to work as soon as possible, but be sensitive to their needs upon return. Allow them time to get up to speed to avoid re-injury. Successful return-to-work programs have reduced total workers' comp indemnity costs by 20 to 40 percent.