5 Ways to Reduce Workers Compensation Costs in Your Cleaning Company
Janitors and cleaners have one of the highest rates of workplace injuries, and the average workers' compensation lost-time claims is more than $23,000. Those are scary numbers for BSCs, who must also contend with price increases for and decreased availability of workers' compensation insurance.
Most states require companies to have workers comp insurance coverage. Even if your business operates outside of one of those states, however, insurance is a must. Without coverage, one injury could bankrupt your business.
Cleaning technicians have higher-than-normal exposure to dangerous fumes, slip-and-fall accidents, and chemical burns from harsh cleaning agents. They also experience an unusually high rate of musculoskeletal injuries as a result of heavy lifting or repetitive motions. Workers comp insurance offers help if an employee experiences injury, illness, or another condition.
The average workers comp insurance premium in the US is $150-$300 per month. Like any insurance, your premium depends on the amount of coverage you choose and the type of work your employees perform. A general cleaning technician has a lower risk of injury than a cleaning technician who also does outdoor window cleaning on multi-story buildings. Likewise, medical cleaners who may have frequent contact with bloodborne pathogens carry a greater risk of infection and require higher insurance premiums.
Fortunately, BSCs have options for reducing their workers' comp costs. By altering your policies, you can reduce your risk (and liability) and lower your expenses.
Tips for Reducing Your Workers Compensation Insurance
1. Invest in Safety Training
Maintaining a safe work environment starts at the top. Business ownership and management are responsible for making sure employees have a safe working environment and can make good decisions for their health and safety.
The Janitorial Stores Safety Training Program is an industry standard Certified Training Program that helps ensure your cleaning technicians are trained and certified. Employees who are confident in their skills and are well trained on safety procedures have fewer accidents and require less time off for recovery.
What's more, safety training has been proven to improve employee recruitment and retention. Around 40% of employees who don't receive adequate job training leave their position within the first year.
2. Keep Track of Where Your Problems Occur
Every time you hear of an accident or near accident, keep track of what the staff member was doing and where they were. Chances are, you will see trends of high-risk areas or high-risk activities. Concentrate your safety training on these aspects of the job. If an area continues to be an issue after increased training, it's worth looking at your procedures to see if you can rearrange or augment the area in some way.
The cost of making these types of changes is far lower than the cost of medical expenses or lost wages as a result of an accident in that area. Many times, a simple solution like a non-slip entryway mat or more frequent ice removal will make a big difference for your staff.
3. Make Safer Purchases
Cleaning products undergo more thorough testing now than ever before. With the wide availability of safe cleaning products, it's no wonder many insurance providers are willing to lower the premium for employers who seek out the least-harmful options available.
You can also make safer purchases by selecting ergonomic equipment that is less stressful for your technicians' wrists, shoulders, and back. Tools that reduce heavy lifting will also reduce unnecessary muscle strains among your technicians. As examples, rolling garbage cans and long-handled dusters are inexpensive purchases that make your staff's work less strenuous.
4. Create a Return-to-Work Program
When you must make a workers comp claim, lost wages is one of the expenses you can control. It's difficult to contest medical bills, but you can give your staff a chance to return to work on light duty. Employees need a chance to recover after an injury or illness, but they be able to handle some of their usual tasks even if they can't complete their full duties.
Instead of paying for employee recovery time and a temporary replacement, ask if they employee is willing to perform light duties during their recovering time. Don't ask the staff member to tackle anything that causes unnecessary strain, but many types of injuries won't be aggravated by tasks like dusting or changing towel dispensers. You may also find some smaller administrative tasks, like inventorying supplies or answering phones, for your light-duty technicians.
These options may allow you to shift workers' responsibilities during the recovery period to eliminate the need for additional help.
5. Look for State-Sponsored Discounts
Another great option for reducing your workers comp insurance costs is to investigate whether your state has government-funded programs for companies like yours. Many times, complying with these programs is a significant savings for employers who don't already meet the full requirements.
For example, in Oklahoma, small businesses can have their workers' comp insurance premium reduced up to 15% by making a commitment to safety training and completing a comprehensive survey at each facility. Similarly, several states offer discounts on workers' comp premiums for employers who commit to a drug-free workplace.
As the business owner, you have a duty to keep your employees safe. Create a culture of safety and make choices whenever possible to protect the health and safety of your team members. Workers compensation insurance is one of many tools in your arsenal. Make sure to keep your costs down so you can afford the best coverage possible for your greatest assets.
Certified Safety Training for Janitorial Employees
Janitorial safety training must be a priority in your cleaning business. Not only is it your responsibility to keep your employees safe, but paying added Worker's Compensation fees due to your own lack of training just does not make good business sense.
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