Insurance companies charge an amount of money for each policy, called the premium, which is based on a set of rating factors that take into account your business operations, the industry and prior claims history.
In this blog post, we will explore how these affect your insurance premiums and what steps you can take to reduce the risk factors. Most state workers’ compensation systems are underfunded, so premiums are expected to increase over the coming years, especially for businesses with claims and worker injuries.
Firstly, all industries have risks; for example, construction
, and mining
are physically demanding and have a higher likelihood of machinery-related personal injury claims or exposure to dust, while warehousing
have a higher incidence of back and arm injuries.
Although office-based occupations may have a low personal injury risk, there is an increased risk of mental health issues leading to anxiety or depression. These types of physiological injuries can also have long terms affects, not only physical-related injuries.
Therefore, managing your operational environment and ensuring your employee well-being is key to reducing or potentially eliminating the risk of injury and workers’ compensation claims.
It’s been proven that a business with a high level of risk management will have fewer claims
involving employees and visitors. Therefore, directly reducing both the length of the time away from work and size of the claim and also premium.
Employers with a poor safety record or inadequate risk management will likely have higher insurance premiums than those who prioritise safety and invest in risk management.
Ultimately, working conditions can have a significant impact on your insurance premiums.