How Simple Workplace Safety Policies Can Reduce Your Business’s Insurance Rates
Starting and running a business are expensive processes. According to a study from Wells Fargo/Gallup Small Business Index, small business owners spend an average of $10,000 when starting their business. Once your 
business is open and operating, you’ll have recurring expenses each month, including rent for an office space, phone lines, Internet connections, professional association fees, marketing expenses, and insurance expenses to name a few. But, there are some simple ways your business could save money on its insurance rates, and most of them won’t cost anything other than your time to implement.
The benefits of general prevention measures
By implementing workplace safety initiatives and ensuring employees and members of your staff are aware of ways to avoid common workplace injuries, you can avoid some of the most common workplace injuries, which include overexertion by pulling, holding, carrying, pushing, or lifting items that are too big or weigh too much. These injuries cost businesses nearly $13 billion in direct expenses annually, and most of these injuries can be prevented.
The Occupational Safety and Health Administration did a study of nine small businesses over the course of 12 years. OSHA discovered that businesses that implemented workplace safety programs not only decreased their workers’ comp premiums because of the reduced number of claims, but these businesses also spent less money managing workers’ comp cases, reduced the HR resources spent filing workers’ comp injury reports, and spent less time training new employees who replaced injured workers on leave.
Aside from the general money-saving advantages having a safe workplace offers, there are specific insurance credits your business could qualify for.
Certified workplace safety committees
While each state will have different policies regarding what can save your business money, in the state of Florida, businesses can receive a 2 percent credit on their workers’ comp premiums by implementing a state-certified workplace safety program, designating what is known as a “Safety Coordinator,” and creating a safety committee that meets once every three months. During these meetings, your safety committee should discuss any workplace safety issues that might have occurred, or ways your workplace can prevent such events from happening. This safety committee cannot be any four employees in your business, but instead must be comprised of two members of management in a supervisory role and two members in a non-supervisory role.
The workplace safety programs must have a written policy in place; create provisions for safety inspections; train other employees on safety and prevention; and must have workplace accident investigation procedures. If Florida workplaces abide by all these standards, they can receive a 2 percent credit on their Florida workers’ comp policies.
Drug-free workplace savings
Another program business owners can implement to receive even more savings is a drug-free workplace policy. There are several qualifications businesses must meet in order to reap the benefits of a 5 percent savings on their workers’ comp policies, but the savings benefits can outweigh the actions needed to meet the qualifications for the program. To qualify for this credit, businesses need a written program, as well as the following testing protocols:
Drug testing must be used as part of the job application process. Applicants who refuse a test or test positive for drug use can be refused employment based on not successfully completing a drug test.
Employers must require any employees they reasonably suspect are using drugs to complete a drug test.
Routine drug testing will be required for employees who must routinely fulfill a fitness-for-duty medical test, or for any employees who meet a certain employment classification or group.
Injured workers are required to take a drug test as soon as possible after they are hurt on the job. Workers’ comp insurance carriers can deny benefits to claimants who test positive for excessive alcohol or any drugs in their bloodstream.
Employers must require employees who have entered assistance programs for drug problems to submit to a drug test after finishing their treatment program. This requirement can be waived if the employee voluntarily entered the treatment program.
For more information about how you can lower your workers’ comp insurance rates, you can always consult the website for the Occupational Safety and Health Administration, or see if there are local workers’ comp agencies in your area who offer workplace safety incentives. Even if your business doesn’t qualify for specific workplace safety credits, seeing a decrease in your workers’ comp claims will be reason enough to implement a program of your own.
Amy Moczynski manages the web marketing for Work Comp Specialists/The Campbell Agency, a workers’ comp insurance agency headquartered in Panama City Beach, Florida. You can contact her at amym@workcompspecialists.com.
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