How a Risk Management 
Mindset and Approach 
Helps You Minimize 
Your Workers Comp Insurance Costs

The first step is to identify potential workplace injuries.

This involves examining all areas of your operation, talking with front-line employees and supervisors, and a review of past workplace injuries and Work Comp claims.

An examination of past Work Comp loss history will reveal the types of injuries, frequency of injuries, operations or job performed when the injury occurred, and individuals or job functions causing injuries.

It’s important to understand the likelihood of an injury happening and the potential severity, or worst case, of an injury, to fully assess the financial impact of workplace injuries.

Your options are to eliminate the risk. For example, you have a crane operation business. You determine that working on buildings over four stories is too risky and expensive, so you do not pursue these jobs.

Transfer the risk. As a crane operator, you have opportunities for jobs over four stories. You subcontract these jobs to another operator with larger cranes to do the job.

Another method of transferring the risk is insurance. You realize that the potential of your employees getting injured on the job are significant, so you purchase Work Comp Insurance.

Finally, you can choose to retain or absorb the risk. This could be an option such as a Work Comp deductible to self-pay smaller claims, or a self-insurance program where you retain and fund larger Work Comp claims.

Monitor and Report on the Risk
It’s essential to have a process to mo

It’s essential to have a process to monitor workplace injuries.

Every incident should be investigated to determine the cause and corrective measures to reduce or eliminate the risk.

Ongoing Safety Training is vital to make sure corrective actions are taken.

Communication at all levels within your business is important to put you on a path to minimizing your workplace injuries and Work Comp costs.