Workers' Compensation and Bonding Help Business: workers' compensation isn't just insurance for injured workers. See how your business really benefits.

• Author: Myers, Deborah J.
• Position: Health coverage for work-related injuries

Workers' Compensation and bonding may seem like they benefit only employees-providing them with health coverage for work-related injuries and proof of trustworthiness and legitimacy within their industry. But both of these programs benefit employers, too.

There is no getting around paying Workers' Compensation premiums-the insurance is mandated by the government for nearly every company.

"It's the cheapest form of liability insurance," said Chancy Croft, a Workers' Compensation claimant attorney in Anchorage. "All these schemes to make employees independent contractors have failed."

The key to making Workers' Compensation cost-effective for your company is creating a program that is proactive, well documented and consistent.

A proactive Workers' Compensation program is safety-oriented. Whether your workplace is an office or a factory, unsafe conditions exist. For example, a secretary in an office could strain his back lifting a heavy file box or succumb to high levels of stress. As an employer, it is well worth your time to help employees avoid claims by helping employees prevent injury.

Being conscious of safety "is the first thing you can do if the premium is based on a safety rating or a large deductible," said Tim MacMillan, a Workers' Compensation claimant attorney in Anchorage.

Ask your insurance company what you can do to lower your premiums. Workers' Compensation companies may help you save if you have a safety team, conduct weekly or monthly safety meetings and/or tuck safety tips in the paychecks. Record how your safety team is changing your workplace, keep meeting minutes and file copies of safety tips so that you have proof you are concerned about safety.

It is also important to incorporate safety into new employee initiations.

"Train your workers on what you expect them to do and how you expect them to do their jobs," said Jeff Wanamaker, vice president of underwriting for Anchorage's Eagle Insurance Co., Seattle branch. "Walk around the facility with the new hire and talk about safety."

Pointing out to employees the necessary workplace hazards can prevent injuries or illnesses. If applicable, show what safety equipment must be used where and the locations of first aid kits, Material Data Safety Sheets and emergency eye washing stations.

Sometimes, it's hard to see the hazards in the place where you work every day. If you have trouble identifying them, see if your insurance provider offers safety evaluations or inspections.

...