Managing Your Insurance Costs

One of the best trends in the last few years is the decline in the costs of worker’s compensation insurance. This has raised questions about whether workers have adequate protection on the job, especially the approximately 40 percent of contingent or temporary workers. Although there are a lot of factors which go into calculating PEO insurance costs, you can manage your costs more effectively by taking a proactive stance and preventing claims by ensuring safety on the job.

How you classify employees determines the risk. An accountant has much less risk of an injury than an electrician does. Don’t misclassify employees to get around this modifier. Make sure each employee is classified appropriately. The employers experience modifier (MOD) is your company’s claim experience. The more claims you have, the higher your premiums will be due to this number.

Good employee training and communication will often help reduce injuries on the job. Keep records of all injuries. Not only does this mitigate your liability if there is a lawsuit, it helps you track problem areas. Make sure you have adequate PEO insurance to cover the risks of your business. You’ll have peace of mind in case the worst does happen and someone is injured on the job on your watch. Your staff will thank you for having their back. It’s a win-win situation.

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