5 Ways General Contractors Can Reduce Workers’ Compensation Premiums

Workers’ compensation insurance is a well-known necessity for your business that cannot be skipped out on, but did you know that you have the power to reduce your own workers’ compensation premiums?

OSHA Compliant Safety Program

While OSHA requires you to have a compliant safety program in place, practicing OSHA safety standards day in and day out can be a hard routine to keep. But in doing so, you can avoid accidents and reduce workers’ compensation costs. Train everyone on your team according to OSHA standards and make sure you review your program every year as standards are constantly changing.

Deductible to Lower EMOD

Your EMOD rating helps us determine the premium you’ll be paying in workers’ compensation. If your rating is less than 1.0, your premium will be lower compared to others in your industry. One claim can change your EMOD rating so it makes sense to use your deductible to pay for small claims.

Dividend Plans for General Contractors

This type of workers’ compensation plan rewards you with a dividend payment should you have successfully controlled your losses for the full policy period. Depending on pre-existing requirements, general contractors can choose to enroll in a flat, sliding scale or combination plan.

Review Worker Classifications

Your premium rate is impacted by how you classify your workers. Review the classifications of your team by consulting the SCOPES Manual from the National Council on Compensation Insurance (NCCI). It makes no sense to have an office worker classified the same as a general contractor. An easy fix may be all you need to save money on your workers’ compensation premium.

Light-Duty or Return to Work Program

Many general contractors find that light-duty or return to work programs are effective in controlling workers’ compensation costs should an accident happen and a claim must be paid out. While it may not help your premium in the long run, a return to work program gives your business a blueprint for recouping quickly and efficiently after a covered loss.

John Quinn began working at H&K Insurance in September 2017. With over 30 years’ experience in the insurance industry, John is armed with the knowledge and experience to fit your unique needs. Keeping your interests at the forefront of his mind, John works with insurance companies to create policies that fit the philosophy and scope of your business. To give him a ring, please dial 617-612-6533 or email him at jquinn@hkinsurance.com to speak about your insurance needs.