Cost Containment Is the Top Workers Comp Insurance Concern

 
 

Businesses have a lot to worry about. From the economic climate and rising costs of raw materials to retaining talent and keeping employees healthy. But there is one fear that may fly under the radar in comparison: keeping workers compensation costs to a minimum. According to a survey conducted by Zywave, an insurance and financial software company, cost containment is the number-one workers comp insurance concern of employers for the next 12 months.

Among the 3,500 companies surveyed, 59% reported they are “very or somewhat concerned” about cost containment this year. To combat this, 65% of participants said the most effective measure they took to control workers comp costs was promoting a safety-minded culture. Others (59%) found that a light-duty or return-to-work program was an “effective or highly effective” method of controlling costs.

In contrast,  only 45% of respondents reported having a written return-to-work policy. Other popular cost-control measures included onsite accident evaluations, loss-prevention evaluations, zero-accident goals, having a dedicated claims manager, safety committee efforts and using a preferred occupational medicine facility. Interestingly, 54% of companies reported having a safety director, while only 29% reported having a risk manager.

 

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About the Author

Emily Holbrook is the founder of Red Label Writing, LLC, a writing, editing and content strategy firm catering to insurance and risk management businesses and publications, and a former editor of Risk Management.

 
 
 

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