Reducing the Costs of Workers’ Compensation


According to the National Safety Council, these types of injuries have the highest average cost to employers (based on average costs from 2016-2017)

  • Motor vehicle injuries ($78,000+
  • Fire and burn injuries ($48,000+)
  • Slip and fall injuries ($46,000+)

From small injuries to extensive ones, when workers get hurt on the job, it opens the door to a paperwork, policies, and procedures headache for both the injured party and the business. So much to do. . . So little time and at every layer, there are direct and indirect costs.

Direct costs: the list is short – workers’ compensation insurance.
Indirect costs: the list is much longer, including both not limited to:

  • Training replacement employees
  • Adjusting work schedules, including possible overtime
  • Loss of productivity
  • Time spent investigating the accident
  • Time spent completing all the paperwork
  • In some cases, time and cost of equipment repair/replacement
  • In catastrophic instances in which the injury was extensive, or even fatal or the accident involved multiple persons injured, employee morale can take a big hit.
  • Fines, if the accident involved a failure to follow regulations, etc.

For most companies, reducing the direct and indirect costs of workers’ compensation is the priority that often hits the wall of “It’s impossible! How do we accomplish this?”

A news article from Briotix Health suggests several ways to get you started.

1. Shop around for the best workers’ compensation insurance policies.

(Don’t have time? The team at Bluebox Creative Solutions will do the shopping for you.)

2. Follow best practices in claims management.

  • Make in-person contact with both the injured employee and medical personnel.
  • File all paperwork promptly and accurately.
  • Keep a daily diary of the process.

3. Create a culture focused on safety.

  • Provide employees with safety education and resources.
  • Establish regular safety checks.

4. Have an established injury procedure in place.

  • Ensure everyone knows the plan of immediate action should an injury occur.
  • Assign specific roles.
  • Empower those with roles the appropriate authority to carry out their duties.
  • Conduct practice drills.

5. Have an employee incentive plan.

It can be both for new hires to learn safety protocols and departments to be injury-free.

6. Implement a Return-to-Work program.

  • Stay connected with the injured worker.
  • Encourage employees to return from work as soon as their injuries allow.

7. Evaluate employee classifications.

Not only do different business rates for insurance vary according to the type of business, but prices also vary according to the employee’s responsibilities. The rate for an office worker is going to be less than someone running heavy equipment.
Some differences are subtle – ensure your employees are classified correctly.

8. Check out the potential rewards program.

  • Does your state offer rewards for implementing safety programs?
  • Does your insurance provider offer rewards for reducing claims?
  • Of course, while all the above is sound advice – thank you, Briotix – it involves a lot of time and costs. Connecting with Bluebox Creative Solutions can make a difference.


We do the footwork on workers’ compensation insurance, finding the best option for your business.

Better yet, we can connect you with a Professional Employer Organization (PEO). PEO’s group multiple companies together and gain better workers’ compensation insurance rates. They will provide your business with a dedicated team of specialists who will work with your HR. They take care of the time-consuming details of claims management, compliance issues, audits, and required certifications, as well as handling employee questions and interactions. In other words, a PEO can change the success factor of your business.

Bluebox Creative Solutions is your door to a reputable PEO, cost reductions, and time savings. Contact us today at (732) 921-2105.

Bluebox Creative Solutions can help. We are a consulting firm with expertise in staffing and human resources that are critical to companies large and small. We have dedicated professionals with decades of experience, and we understand the challenges you the Employer face on a day to day basis. Bluebox Creative Solutions has partnerships with viable Employer of Record entities. We help you connect with the best choice for your company. Contact us today at (732) 921-2105.