Why Workers’ Compensation Is So Pricey

Understanding—and Avoiding—High Costs

California is the most expensive state for workers’ compensation. In fact, California businesses pay 188 percent of the media cost for workers’ comp in all 50 states. How did it get this way?

Since 2009, the rate of claims in most states has been decreasing. In California, however, it has been going up. This has led to a 41 percent increase in premiums in the last half decade. Additionally, the average cost of a claim has gone up by $30,000 in the last ten years in our state.

Part of this is unfortunately due to an inefficient system. That does not mean, however, that you have to face these high costs. Here are a few quick tips for saving on your workers’ compensation coverage.

• Help get employees back to work as soon as possible. Consider implementing a Return to Work program to help with the transition.
• Set up a committee made up of management and your employees to address and remove any obstacles to ensure a safe workplace.
• Make sure that your safety training is thorough for every single one of your employees. Post signs  throughout your workplace reminding your staff to use proper safety procedures.
• If someone does get injured, give them medical attention right away to minimize complications associated with the injury.
• Analyze your workers’ comp claims for patterns. If you notice any, assess how you can break the cycle, either by changing your workplace or addressing certain employee behaviors.

An insurance expert can use his or her insider insight to help you unlock the most affordable workers’ compensation coverage. To work with dedicated, knowledgeable agents, contact Built Insurance Brokerage. Serving California construction companies, we have years of experience helping them get the most protection with the least expense. If you want to see savings on your construction insurance premiums, call us today!