Workers’ compensation insurance being mandatory in most states for businesses that have employees, the related expenses are unavoidable. However, there are several steps that you can make to reduce those expenses – here are some:
- Understand how your business is rated for the calculation of the insurance premium – your workers comp insurance Colorado rate is calculated based on the risks associated with your area of activity, on the size of your payroll and on your company’s history of claims, a factor called the experience modifier;
- Review your rating – an incorrectly determined rating can be costly, so review the payroll figures and the categories used while classifying your company to make sure that the calculations are correct;
- Work to lower your modifier – while there is not much you can do about the industry risks involved by your business activity and your payroll, you can efficiently work towards lowering your experience modifier. It is a good idea to evaluate your workplaces and the work areas from the perspective of work safety and to implement the necessary measures to take work safety to the highest possible level. You can also make work safety trainings mandatory for your employees and enrol into state-sponsored programs that offer the reduction of your workers’ compensation premium in return.