Debunking an Insurance Myth: Business Insurers Want to Charge More! And the 13 Ways to Reduce Your Risk and qualify for Better Rates*

Debunking an Insurance Myth: Business Insurers Want to Charge More! And the 13 Ways to Reduce Your Risk and qualify for Better Rates*

There’s a common misconception floating around—insurance companies want to charge high premiums. Insurance providers do want to be profitable and competitive like any other business. Insurers understand the necessity of offering competitive rates in a marketplace with many options. Their ideal scenario? They want to partner with businesses that have fewer claims. It’s simple math: fewer claims equal increased profits. Insuring businesses with a lower risk profile increases profits and creates a competitive edge for insurance companies. If businesses can demonstrate they are a low-risk partner, insurers are more likely to offer them competitive rates. Adopt the following 13 practices to strengthen your business operations and give insurers 13 reasons to offer you premium rates.

1. Risk Assessments: Start Here

Every strategy begins with awareness. A risk assessment illuminates the various challenges, both internally and externally, that a business might face. Why is it crucial? A risk assessment should equip a company to stay one step ahead, safeguarding you from claims. Engage experts or use our free assessment tool.

2. The Blueprint: Your Risk Control & Safety Program

Crafting a robust safety and risk control program is your first defense. This is a written document that ensures everyone in the organization knows what is supposed to be done. These collections of policies explain what the company is going to do. Your procedures instruct employees and managers on how it is supposed to get done. Every individual should understand their roles and responsibilities. The support of every tier in your organization ensures its effectiveness.

3. Training: Don’t Skip This Step

Regular training sessions are essential. Everyone, from new recruits to seasoned veterans, should be refreshed on safety protocols. The goal is to make safety second nature and hold everyone accountable for their actions.

4. Bouncing Back with a Return-to-Work Program

Accidents, though undesirable, can occur. When they do, it is important to have a structured return-to-work program to help injured employees return to work sooner. It fosters collaboration between employers, healthcare providers, and administrators to ensure the injured employee can return to work promptly and safely. It also reduces the length and cost of claims.

5. Hiring with Safety in Mind

Safe operations start with hiring the right people. Focus on recruiting individuals who respect safety protocols. Integrating drug tests and background checks can help ensure your workforce is safety-conscious.

6. Be Proactive: Inspecting for Workplace Hazards

Every environment has its set of hazards. Regularly evaluating potential dangers and inspecting your workplace can offer invaluable insights. Encourage employees to be active contributors in identifying and reporting risks.

7. Accountability and Clear Expectations: The Two Go Together

In the realm of workplace safety, clarity is not just preferred—it’s imperative. Set clear expectations during initial safety orientations, annual training, and regular safety meetings. Yet, clear expectations without consequence are useless. Hold individuals accountable to ensure established guidelines aren’t mere suggestions but firm rules. This combination of clear expectations and accountability is imperative if you want to create a safe workplace.

8. Prepping for Injuries: Develop an Injury Response Protocol

While prevention is critical, being prepared for potential injuries is equally important. An efficient response protocol ensures that injured employees receive immediate care.

9. Injury Reporting: Time is Not on Your Side

Prompt reporting can be the difference between a well-managed incident and a chaotic situation. All minor or major injuries must be reported immediately, documented, and the claim filed with your insurer within 48 hours.

10. Learning from the Past: Post-Injury Investigations

Always perform a root cause analysis and follow up with corrective actions. Every incident offers lessons. By thoroughly investigating each accident, businesses can gain valuable insights. These investigations can identify flaws in existing safety measures and pave the way for improved protocols.

11. Patterns in Claims: The Bigger Picture

Review your claim history at least once a year. This is called a “loss runs review.” Ensure participation from various departments and analyze past incidents to forecast potential risks. Identify any patterns. Recognizing repetitive injuries or consistent issues can reveal deeper systemic problems or even fraudulent activities.

12. Partnering with Trusted Medical Providers

In the unfortunate event of an injury, have a medical provider pre-selected so employees and supervisors know where to go to receive prompt medical care. Networks that offer 24/7 assistance can ensure injured employees receive timely and appropriate care when needed.

13. Swift and Effective Claims Handling

The efficiency of handling claims can significantly impact an organization’s reputation and finances. Businesses can foster trust and minimize financial disruptions by ensuring timely and transparent processing.

In Conclusion

To wrap things up, it’s pretty straightforward: Insurance companies want to work with businesses that are a good risk. Follow the 13 recommendations outlined above, and you will be well on your way to doing that.