Workers' compensation is a substantial cost of doing business, depleting money and time that should be devoted to your core business. Understanding the cost drivers is the first step in wisely selecting strategies to minimize this cost.

Uninsured Expenses

Beyond the premium that you pay as an employer for workers compensation, on-the-job injuries also produce costs that are not covered by workers' compensation insurance. Some examples of these uninsured costs include:

 Production down-time and inefficiencies

 Replacement cost for temporary labor

 Training temporary labor or replacement workers

Many experts believe that the uninsured costs of on-the-job injuries can be as much as 2 or 3 times the actual premium paid for workers ' compensation insurance! Finding solutions to the cost of workers' compensations is critical to the health of an organization, both in economic as well as human terms.

Direct Cost

Medical
Lost Wages

Indirect and Hidden Cost

Time lost from work by injured employee
Lost time by supervision
Loss of efficiency
Cost of orientation of new employees
Cost to morale of other staff
Economic loss to injured workers family

All of these factors add to rising cost of insurance.