“ I think a really important thing to know is that the workers comp costs are a lot more controllable than business owners realize”
In episode #116 of Mission to Grow, the Asure podcast that serves as small business owners’ guide to cash, compliance, and the War for Talent, VP of Partner Strategy at E-COMP, Robert Campbell, sits down with host Mike Vannoy to break down the three big buckets of cost control: risk management, claims management, and insurance policy management. We discuss the importance of HR infrastructure, company culture, and the surprising impact of 1099 contractors on workers’ compensation.
Takeaways:
- Workers’ Comp Costs Are Controllable: Many business owners underestimate how much control they have over workers’ compensation costs. With the right strategies, costs can be managed effectively.
- Three Big Drivers: The main areas to focus on are risk management, claims management, and insurance policy management. These areas provide significant opportunities to control costs.
- HR Infrastructure Is Critical: A strong HR infrastructure, including proper incident reporting and documentation, is essential for minimizing fraudulent claims and providing the insurance company with the tools needed to fight unjust claims.
- Company Culture Matters: A positive company culture can prevent employees from exploiting the workers’ comp system. Conversely, a negative culture may encourage employees to file claims unnecessarily.
- 1099 Contractors Are a Risk: Mismanagement of 1099 contractors can lead to unexpected workers’ comp liabilities. It’s crucial to understand the risks and manage them effectively.