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Saving on workers’ compensation insurance

On Behalf of | Dec 4, 2019 | Workers' Compensation

In the state of Pennsylvania, workers’ compensation insurance can represent a large cost for many small- to medium-sized private businesses. Especially in this competitive insurance market, many companies feel the crunch of this necessary safeguard.

The Pennsylvania Department of Labor and Industry considers worker safety a top priority, so they offer an incentive program to any businesses that establish a Certified Safety Commission.

What are the benefits of a Certified Safety Commission?

Aside from the increase in productivity and employee satisfaction that follow from a safer workplace, a Certified Safety Commission entitles your business to a 5% premium discount on your workers’ compensation policy.

The Safety Committee can also act as a liaison between employees and management so that you have more avenues for addressing workplace safety and policy change. By making your workplace safer in general, you can reduce your likelihood of a workers’ compensation claim.

How do you qualify for the 5% premium discount?

To receive the 5% workers’ compensation premium discount, your business must:

  • Establish a safety committee that meets monthly
  • Include at least two employer representatives and at least two employee representatives in the safety committee
  • Hold six consecutive months of safety committee meetings
  • Complete annual hazard identification and accident investigation training
  • Submit an application to the Workers’ Compensation Certification Unit 90 to 30 days before your next worker’s compensation policy renewal

Once you establish the safety committee, it must continue to meet monthly. You can renew this certification every year, though the Department of Labor and Industry reserves the ability to audit meeting agendas and minutes of the safety committee every two years.

Even if your business merges or comes under new ownership, this safety committee will still entitle you to the discount as long as the basic requirements of the committee remain in force. The safety committee can continue to evolve, but should always include the same number of employee and employer representatives, as well as representatives from all operational departments of your business.