The Effect of Employees on Your Employers Liability Insurance Rates

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When it comes to running a business, there are many factors that you need to take into consideration, and one of the most important is your employees. Not only are they the backbone of the company, but they can also have a significant impact on your employer liability insurance rates. In this article, we will discuss the effect of employees on your employer liability insurance rates and what you can do to minimize your risks.

What is Employer Liability Insurance?

First, let’s define what employer liability insurance is. Employer liability insurance, also known as workers’ compensation insurance, is a type of insurance that provides coverage for employees who are injured or become ill while working. It covers medical costs, lost wages, and rehabilitation, among other things.

How Employees Affect Your Employer Liability Insurance Rates

Employer liability insurance rates are calculated based on a variety of factors, including the number of employees you have, the nature of your business, and the risks associated with your industry. Your employees play a significant role in your employer liability insurance rates because they are the ones who are most likely to be injured or become ill while on the job.

The more employees you have, the higher your employer liability insurance rates are likely to be. The reason for this is that the more employees you have, the greater the likelihood that one of them will be injured or become ill. Additionally, certain industries, such as construction, are considered high-risk, which means that their employer liability insurance rates are typically higher than businesses in low-risk industries, such as retail.

How to Minimize Your Risks

While you cannot control every aspect of your employees’ work environment, there are steps you can take to minimize your risks and reduce your employer liability insurance rates. Here are some things you can do:

1. Provide a Safe Workplace

Providing a safe workplace is perhaps the most important thing you can do to minimize your risks and reduce your employer liability insurance rates. This means ensuring that your workplace is free of hazards, that your employees are properly trained to use equipment and machinery, and that you have policies and procedures in place to prevent accidents and injuries.

2. Conduct Regular Safety Training

Regular safety training is essential to ensuring that your employees are aware of the risks associated with their job and how to avoid them. By providing your employees with regular safety training, you can help them stay safe on the job and reduce the likelihood of accidents and injuries.

3. Enforce Workplace Safety Policies

Enforcing workplace safety policies is just as important as having them in the first place. Make sure your employees know that they are expected to follow these policies and that there will be consequences for not doing so. By doing this, you can help create a culture of safety in your workplace.

4. Screen Potential Employees

Screening potential employees before they are hired can help you identify those who may be more likely to be injured on the job. For example, if someone has a history of back problems, they may be more likely to get injured if their job requires heavy lifting. By identifying these individuals before they are hired, you can take steps to mitigate their risks or choose not to hire them.

Conclusion

Employer liability insurance is an important aspect of running a business, but it can also be expensive. The number of employees you have and the risks associated with your industry can have a significant impact on your rates. By providing a safe workplace, conducting regular safety training, enforcing workplace safety policies, and screening potential employees, you can help reduce your risks and keep your employer liability insurance rates as low as possible.

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