Factors That Affect the Price of Workers’ Comp Premiums

If you own a business that manufactures products, you most likely have to pay for a worker’s comp plan. Manufacturing workers’ comp policies help to cover the cost of medical bills and lost wages for employees who become ill or are injured on the job. How much that policy costs you as the business owner depends on several factors.

One factor is related to the company’s size. The number of employees you have impact how much you pay in premiums. More specifically, the size of your payroll affects how much your plan costs. Because an injured employee’s wages are part of a workers’ comp claim payout, total wages for the company factor into how much the plan costs.

Your claims history can also affect your manufacturing workers’ comp premiums. If, for example, you have quite a few injuries on the production floor that left workers temporarily unable to do the job in the past year, your premiums are likely to be higher.

On the other hand, a good safety record and a clear commitment to future safety can lower the cost of your plan. It is a good idea to have a safety committee, which is a group of people who oversee safety practices in the workplace. Taking a provable, proactive stance on safety can save you money on workers’ comp.

You may not be able to control every factor that affects workers’ compensation. You can, however, work hard to improve safety protocols and thus limit your claims.