Ways to reduce workers' compensation insurance costs

There are several steps you can take to help reduce your workers’ compensation insurance costs.

Workers’ compensation insurance coverage can be an expensive part of doing business in Massachusetts. There are, however, several steps you can take to help prevent injuries. If one does occur, there are still ways you can reduce your worker’s compensation insurance coverage.

Before an injury

Education

The best way to reduce injury and illness in the workplace is to establish a comprehensive safety and health education training program. Programs designed to train you and your employees to recognize, avoid, and prevent unsafe or unhealthy working conditions have been successful in reducing injury and illness as well as increasing productivity.

The Department of Industrial Accidents' (DIA) Office of Safety is responsible for establishing and supervising such programs.

The DIA awards grants to qualified applicants based upon a competitive selection process. 

Joint labor-management safety committees

These committees provides a forum for identifying and correcting health and safety concerns in the workplace. Worker participation is key to the success of any health and safety program.

 

After an injury

Medical attention

  • When an employee is injured, the most important thing to do is to get them medical attention as soon as possible
  • An injured employee is entitled to adequate and reasonable medical care, which includes doctor visits, hospital services, prescriptions, etc.
  • The employee’s first scheduled appointment can be made by the employer if the employer participates in a Preferred Provider Agreement (PPA). After that, they have their right to choose their own medical providers.
    • If there is no PPA in place, the worker has the right to choose their own healthcare provider for treatment. They may change this provider once without getting permission from the workers’ compensation insurance carrier.
  • Speedy and efficient medical care can reduce an employee’s long-term disability and keep insurance costs down

Injury report

  • Fill out required forms and notify your workers’ compensation carrier of all injuries and illnesses
  • If the injured worker is disabled and can’t earn full wages for 5 or more calendar days, you must report the work-related injury to the DIA
  • You’ll be fined if you don’t report the injury in a timely manner
  • You should notify the adjuster from your workers’ compensation insurance carrier and provide the documents they need to process the claim
  • Maintain contact with the injured worker, the adjuster, the medical providers, and any other party involved
  • Keep a record of all documents and give the injured worker copies of the documents

Return to work

  • One of the most important ways to reduce your workers’ compensation costs is by returning the injured worker to their job
  • Job or tool modification can help the injured employee return to work as soon as possible and helps prevent future injuries

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