How to Lower Your Workers Compensation Rate

A company can make a larger profit by lowering their workers' compensation rate. High workers' compensation rates can especially be tough on smaller businesses with little room in their budget. There are steps that can taken by the employees within a company as well as the employer that can help lower workers' compensation rates.

• Encourage workers to keep working by offering bonuses to those who do not miss many days over a certain period of time. This will discourage workers from milking injuries for all they’re worth and lower the amount of injury claims that are filed.


• Ask someone who knows a lot about insurance what you can do to lower insurance premiums. Insurance companies may not tell you exactly what you’re paying for. Someone with insurance knowledge can tell you the right questions to ask to lower monthly premiums. Consider talking to an audit specialist to help you.


• Get the company’s experience modification rating down as much as possible. The experience modification rating is the biggest factor in how much money the company pays for insurance each month or year. See if your insurance company can lower this rating for you by finding discounts that you’re eligible for. You can also ask them what you have to do to lower this rating.


• Put lots of safety measures in place to ensure a safe working environment. A company that has more injury claims will be required to pay more to be insured. Consider rewarding the entire company if there are no injuries for a significant period of time.