Containing Your Workers' Compensation Costs: Construction Workers' Compensation

Workers' compensation costs have had an enormous impact on the bottom line. By focusing on long-term objectives, however, these expenses can be effectively managed and contained. Here is a checklist that can help keep your costs down:

• Establish a Comprehensive Cost Reduction Program
• Train Employees to be Safety-Conscious
• Evaluate Your Organization's Claim History
• Compare Your Costs to Those of Other Companies
• Periodically Audit Claims Reserves
• Familiarize Yourself with Basic State Procedures
• Evaluate the Legal Knowledge of Cost Control Managers
• Train Managers and Supervisors on Cost Containment
• Retain Aggressive Attorneys and Adjusters
• Know Your Insurance Policy Inside and Out
• Handle Every Claim Individually and Aggressively
• Establish a Good Working Relationship with Company Physicians
• Identify and Deter Fraudulent Claims
• Obtain a Full, Universal Release of all Claims Before Settling
• Coordinate Workers' Compensation Claims with Pending Litigation
• Do Not Overlook Subsequent Injury Trust Funds
• Bring Employees Back to Work as Soon as Possible
• Analyze the Advantages of Self-insurance
• Manage Workplace Injuries - Don't Let Them Manage You

Controlling workers' compensation costs is no longer merely a desirable goal. For many employers competing with other companies which have successfully lowered their costs, it is a necessity for business survival.

This article appeared in the Spring 2007 (vol. 2, issue 2) Bloomberg Corporate Law Journal, and a version appeared in the July 24, 2007 edition of ForConstructionPros.com.