Reduce Your Workers Compensation Cost & Put More into Your Business | DirectWorkComp

A common question that we get asked frequently is how can we possibly save business owners money on workers compensation costs? We also get asked how we can save them at least 30%? The reality is that every business owner controls what they’re going to pay for workers compensation even though many times the rates are set by the state. There can be credits and discounts to ultimately reduce premium far below standard rates. Many buyers may not understand what they are paying for workers compensation and how to pay less.

Today, we’re going to talk about that in this blog post.

The premiums that business pay vary from small to large. The ability of the smaller purchaser to negotiate their workers compensation premium is far less than that of a middle-market or large account. At Direct Work Comp we have the ability to negotiate premiums in excess of $25,000. We always offer our best quote on any premium under that.

Here are a few tips for every business owner to discuss with their insurance agent when they are purchasing workers compensation insurance.


ASK QUESTIONS Business Owner Questions

I think the first thing that every business owner should do is ask questions about their workers compensation policy. I would ask questions such as:

  • Is this my lowest rate?
  • How can I get the lowest worker compensation cost?
  • Is the insurance carrier familiar with my type of business?

Truthfully, certain insurance carriers like certain types of business. If you’re insured with a carrier that doesn’t focus on your type of business, then you may not be getting the lowest rate from that carrier. Sometimes, simply by shopping around you might be able to save a little bit of money by finding a carrier that aggressively prices workers compensation for your business. By asking some questions, you can find out if you are with the right carrier, and if you’re getting the lowest rate.



Many business owners may not be familiar with the underwriting process. Sometimes it’s common for agents to use existing policy information to provide a quote and beat the rate.  While this may work in the short term, a better long term strategy to focus on how to pay less yearly.  Carriers ask us questions to determine the rate for workers compensation insurance such as:

  • Are health plans provided?
  • Is there a return to work program?
  • Is there a safety program?
  • Is group transportation provided?

When it comes to financing a business, the best thing your business can do is to ask questions during the purchasing process and advocate for discounts if your business is doing the right things to reduce risks. There’s a good chance that if an agent is just quoting numbers off of your policy they may not know the answers to the above questions. It’s always in your best interest to work with an agent that understands workers compensation and can take your message to the carrier an advocate on your behalf. But it all starts with you, you need to advocate for your business too received the lowest rate.



This probably sounds easier said than done but your business should have a program to promote safety and prevent claims. In the event that your business does have a claim, there are long-term benefits to keeping claim costs low.

workers comp claimOne of the things that we recommend to businesses is to visit the emergency room and physician with your injured worker after a claim, if allowed by the state laws.  By attending these meetings with your injured worker, you’ll have an understanding as to what they are telling the physician.  You’ll also be able to communicate directly with that physician regarding any return to work program or light duty that can be accommodated. Many times if you’re not in the room and your injured worker is talking to the physician, costs can skyrocket.  For example, an injured worker may tell the physician that your company does not have a light-duty return to work program and that they need to be off of work.  This can immediately lead to higher claims costs.

Your business should take an active role in any claim to help manage costs and bring the employee back to work if possible.  This not only helps with your future workers compensation cost but potentially help your employee’s mental health.


By advocating for your business and putting in procedures to reduce claims, your company will pay less for workers compensation insurance. The fantastic thing about this is that when your business is able to retain those savings rather than pay the insurance company, there is more cash to reinvest into your business.

Businesses who are able to do the above are able to grow their business more successfully than those who do not do this. Not only will you have more capital to invest when it comes to financing a business, but you’ll also have fewer claims and happier employees.  The savings can be measurable.


Direct Work Comp helps business owners save up to 30% on workers compensation insurance. We can do this for most businesses in just 3 minutes or less through our online quote process. As we talked about earlier, most businesses are overpaying for work comp and the standard quote process requires a lot of paper, time, and waiting. Direct Work Comp helps solve that problem.

If you want to learn more about how Direct Work Comp can help your business or how our process works, visit our about page! Please feel free to contact us via email at for any of your work comp or quote questions!

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