Understanding The Cost Drivers Of Workers’ Compensation For Manufacturers
The Impact of Workplace Injuries on Workers’ Compensation Cost
Workers’ compensation insurance is a critical aspect of a manufacturer’s risk management program. It covers the cost of medical expenses and lost wages for employees who get injured or become ill as a result of their work. With over 100,000 workplace injuries in the manufacturing sector each year, according to insurance carrier Travelers, it is important for manufacturers to understand the key drivers that impact the cost of workers’ compensation insurance.
One of the primary cost drivers of workers’ compensation insurance is the frequency and severity of claims. As the top five injuries in the manufacturing sector include coming into contact with harmful objects (40%), overexertion (24%), slips and falls (19%), repetitive motion (8%), and contact with harmful substances/chemicals (6%), manufacturers with a high frequency of claims are likely to pay more for their insurance than those with a low frequency of claims.
The Importance of Loss Control in Workers’ Compensation
Another factor that can impact the cost of workers’ compensation insurance is the manufacturer’s loss control program. Manufacturers that have implemented effective loss control measures, such as safety training programs, are often eligible for discounts on their insurance premiums. This is where Tower Street Insurance sets itself apart from other insurance agencies.
At Tower Street Insurance, we offer a loss control solution that adapts to each company’s needs. Our loss control team is committed to implementing loss control measures to protect employees and reduce the cost of workers’ compensation insurance. Our team also offers loss control and safety services, making it easy for emerging companies to establish an EHS or safety program for their employees and the general public.
Protecting Your People and Your Business with Tower Street Insurance
Tower Street Insurance understands the importance of workers’ compensation insurance for manufacturers. Our team works with clients to provide the best coverage solution based on their unique needs and exposures. Our commitment to personal risk management parallels that of our commercial client’s experience.
In conclusion, workers’ compensation insurance is essential for manufacturers to protect their employees and cover the cost of medical expenses and lost wages. The cost of workers’ compensation insurance is driven by various factors, including frequency and severity of claims and the manufacturer’s loss control program. At Tower Street Insurance, we are committed to providing top-level service and coverage to our clients and protecting their businesses with our loss control solution.
Tower Street Insurance Connects You with the Best Insurance Program for Your Specific Needs
As your company grows and your product becomes more widely available, the risk of a product recall or other significant incident also increases. Product recall insurance can provide financial protection against the costs associated with a product recall. By purchasing product recall insurance, you can protect your business and your finances in the event of a product recall. Our agents here at Tower Street Insurance can assess your current coverage for all of your loss control, personal insurance, and business insurance needs.
We would love to set up a meeting to go over your coverage with you and provide you with a coverage gap analysis completely free of charge! Reach out to us today to schedule a meeting and get a quote today.
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