How to Lower Workers' Comp Insurance Costs in a Changing Insurance Marketplace

Andy Knox, Jr. MWCA, CBWA
Created: October 18, 2012

Focusing and committing to safety can help make your construction business attractive to insurance companies and keep workers' comp costs down in 2013

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When setting rates, insurance companies look at the amount of risk that is inherent in your operations and the actions you have taken (and continue to take) to manage and control these risks.
When setting rates, insurance companies look at the amount of risk that is inherent in your operations and the actions you have taken (and continue to take) to manage and control these risks.

You can control a certain level of your workers’ compensation costs in 2013 by implementing an active and caring safety committee with tunnel vision on job safety. Also, know and understand the effect of injuries on the experience modification factor and how they can affect your bottom-line.

You should do your part to mitigate risk, and also expect a certain level of commitment from your insurance company and agent. I advocate an annual training day and a safety orientation kickoff. When employees see that their employer is committed to their safety, this sense of commitment tends to trickle down to them – to everyone’s benefit. You pay lower premiums, and they are safer on the job.

Andy Knox is Vice President of Watson & Knox, Inc. in Thomson, Georgia, where he focuses on Property and Casualty lines with an emphasis on Safety (OSHA) and Workers Compensation. He is one of 60 agents in the country who have obtained the Masters Workers’ Compensation Advisor designation from the Institute of WorkComp Professionals. He can be reached at aknoxjr@watsonandknox.com.