27136 Paseo Espada #103 San Juan Capistrano, CA 92675

How a Risk Management 
Mindset and Approach 
Helps You Minimize 
Your Workers Comp Insurance Costs

Risk management is the process of identification, analysis, and acceptance or mitigation of uncertainty in business decisions

Work Comp Risk Management includes four essential steps:

Identify Workplace Risks

The first step is to identify potential workplace injuries.

This involves examining all areas of your operation, talking with front-line employees and supervisors, and a review of past workplace injuries and Work Comp claims.

Assess the Risk

An examination of past Work Comp loss history will reveal the types of injuries, frequency of injuries, operations or job performed when the injury occurred, and individuals or job functions causing injuries.

It’s important to understand the likelihood of an injury happening and the potential severity, or worst case, of an injury, to fully assess the financial impact of workplace injuries.

Why do certain clients require you to carry Workers' Compensation Insurance?

Your options are to eliminate the risk. For example, you have a crane operation business. You determine that working on buildings over four stories is too risky and expensive, so you do not pursue these jobs.

Transfer the risk. As a crane operator, you have opportunities for jobs over four stories. You subcontract these jobs to another operator with larger cranes to do the job.

Another method of transferring the risk is insurance. You realize that the potential of your employees getting injured on the job are significant, so you purchase Work Comp Insurance.

Finally, you can choose to retain or absorb the risk. This could be an option such as a Work Comp deductible to self-pay smaller claims, or a self-insurance program where you retain and fund larger Work Comp claims.

Monitor and Report on the Risk
It’s essential to have a process to mo

Monitor and Report on the Risk

It’s essential to have a process to monitor workplace injuries.

Every incident should be investigated to determine the cause and corrective measures to reduce or eliminate the risk.

Ongoing Safety Training is vital to make sure corrective actions are taken.

Communication at all levels within your business is important to put you on a path to minimizing your workplace injuries and Work Comp costs.

Are You Open to Exploring a Risk Management Approach To Containing Your Work Comp Costs?

Schedule Your Work Comp Risk SnapShot Today

McDonough Insurance Services

Workers Compensation Insurance Advisors Focused on Reducing Risks and Minimizing Work Comp Costs for Construction, Wholesale, Food Processors, Trucking, Agriculture, Home Care and Cannabis
27136 Paseo Espada #103 San Juan Capistrano, CA 92675
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Mike McDonough | McDonough Insurance Services


Mike McDonough

McDonough Insurance Services


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