Workers’ Compensation Insurance, also known as Workman’s Comp or Workers’ Comp, is insurance coverage that provides benefits to employees who have a work-related injury or illness. It is mandatory by law in most states. In South Carolina, a business with 4 or more employees (full and/or part-time) must have a workers’ compensation insurance policy.

Your modification factor (or mod) is a way of measuring how your company compares to others in the same industry regarding risks and claims. It is calculated by comparing anticipated losses of a business in your industry to your actual losses. 

Make safety a priority and create a written safety program. Make sure you are fully training all personnel prior to allowing them to perform alone. Take actions to reduce job hazards and distractions in order to create a safe working environment. Prepare emergency announcements and procedures and practice them. If applicable, teach and train on proper lifting techniques. Employers must create a culture that promotes safety and encourages employees to talk about safe practices.

A Modified Duty Program allows employees who were injured on the job to return to work with modified tasks. It is very important to have this program officially documented. Additionally, the modified tasks/roles should be meaningful and in no way be viewed as a punishment.  

Best practices encourage an investigation into any workplace accident within 48 hours of the incident. These investigations should be prompt, thorough, and all findings should be documented in an organized manner. When investigating, be sure to speak to multiple people/witnesses and examine the location of the accident. Proper investigation can lead to ways to improve workplace safety and therefore help reduce future accidents. If accidents are reduced, in theory there are less claims and there can be a possible reduction in your premium.

Along with your investigation, all accidents should be reported as soon as possible. Be sure to follow all Department of Labor laws as well as company policies and procedures.  

Confirm your job classifications and job descriptions are accurately documented. Additionally, confirm the accuracy of your payroll. Your payroll is a factor in determining your premium. 

Employees who use drugs or alcohol can cost their employers more than other employees in medical costs and workers’ compensation costs. It is recommended that businesses require passing a drug test prior to employment. Additionally, you can perform random drug testing for all employees. These practices can reduce the number of employees who abuse substances, and therefore potentially reduce accidents and claims.