Hopefully you are prepared for what may come if an employee of yours becomes injured while at work. First and foremost, you will want to make sure that they receive the proper immediate care they need. Do they need emergency services or medical attention?  It is in your best interest to prioritize your employees’ safety above all else, and if it ever becomes jeopardized, then you must take the measures to manage those injuries, such as having your worker’s comp insurance step in, but this security can get pricey. Luckily, there are some ways to keep your workers’ comp costs and premiums low.

Modification Factor

A modification factor (also known as a mod) compares anticipated losses of a business in the same industry to your business’s actual losses, factoring in risks and claims. It is likely that it will make a difference on what you pay for workers’ compensation and will determine if losses make sense for the circumstances. The size of your company, if there is significant unexpected loss, how often loss occurs, and the severity of losses are all factors of the comparison. Data will be collected to figure out your score, which will either be added or taken away from your premium. If your losses are better than the average in your industry, you may qualify for a credit, and your premium may be lowered.

Safety Culture

All employees must be trained on proper safety protocol. Ensure that thorough training is done, so they are aware of the value of safety procedure compliance. Speak about safety in training sessions and also in casual discussions around the workplace regularly. If safety is always top of mind for employees, it will make a huge difference. When hazards are reduced, the workplace runs much more efficiently. Emergency announcements should be ready with everyone in the know about how to respond.  An ergonomic workplace with minimal distractions is also vital to the well-being of your operations. Fewer accidents means a smaller claims history, resulting in a lower workers’ compensation premium.

Return to Work Program

Return to work programs will allow employees who have been injured to return to work when it actually makes sense for them to do so and modify tasks in a way that they’re physically capable of performing. The work that is assigned to the injured employee must be designed in an intentional way. It should not just be busy work, and they should feel like they are adding value. Employees should not feel as if they are being punished for having to take a leave. A solid return to work program implemented is another excellent thing to show to your agent.

Investigate Accidents

All accidents should be promptly and very carefully investigated. Speak with several witnesses to determine what took place. Thoroughly inspecting the accident location within 48 hours of the incident with your witnesses is helpful for better recollection. Also, keeping your records clear and organized will help prevent these types of accidents from occurring again, which will help lower workers’ compensation premium. Evaluate any areas where you could improve safety. Determining what caused an incident that may have led to an injury waiting to happen puts you in a much better preventative position.


Always be quick to document all workplace accidents. Therefore, employees should know that they must inform you of any accident as soon as possible. The employee’s supervisor, the medical professional, and the HR team should all have copies of the report. Keep in mind that there will likely be several reports that must be filed, so you may want to check with your agent about what you legally require reports. To help streamline the process of reporting, it is important that all job classifications and payrolls are accurate. This will allow the workers’ comp to match the documentation and hopefully help with workers’ comp costs.

About Thayer Innes and Freeman Bunting Insurance Agencies

At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.