Five Smart Ways to Help Reduce Workers' Compensation Costs

Published in All Insurance Industry Insights on Tuesday, September 23, 2025 by Don Patnode

When workers’ compensation costs start to rise, it can be tempting to look for quick fixes. But the best results come from building a strong safety program that supports your team every day. A safer workplace means fewer injuries, and fewer injuries help lead to lower workers’ compensation costs over time.

Here are five simple and effective strategies to help strengthen your safety efforts and support a healthier, more productive workplace.

1. Build out your OSHA safety programs

OSHA standards are a great starting point for improving safety. Many accidents happen because of gaps in basic procedures, like blocked walkways, missing protective gear, or unsafe lifting techniques. A well-written and clearly communicated safety program can help prevent those situations from happening.

Companies that take the time to create strong, OSHA-compliant programs often see fewer injuries, better productivity, and more confident employees.

2. Make safety part of your daily routine

Safety policies only work when they are part of your culture. That means going beyond the handbook and making safety something that is practiced and reinforced every day.

Supervisors play a big role in this. When they understand the safety program and lead by example, it sets the tone for the whole team. Encourage open communication, recognize safe behavior, and make sure everyone understands the expectations.

3. Take every incident seriously

Every injury or illness, no matter how small, should be looked into. It is not enough to just report what happened. You need to understand why it happened.

When you take the time to find the cause, you can correct the issue before it leads to something more serious. Many businesses focus only on the major incidents, but the smaller ones add up quickly. By taking every incident seriously, you can reduce the total number and create a safer environment for everyone.

4. Train your team

Training is one of the most important tools in your safety program. It helps your team know what is expected of them and gives them the confidence to do their jobs safely.

This applies to both leadership and frontline employees. Everyone should understand their role in keeping the workplace safe. The more knowledgeable and prepared your team is, the fewer injuries you will see.

5. Audit and improve

Your safety program should never be a one-and-done project. Regular audits help you see what is working, what needs to change, and where you can continue to improve.

Review your processes often. Walk the work areas. Look for small things that could make a big difference. Safety is an ongoing effort, and the best programs are always evolving.

The Benefits of a Strong Safety Program

A strong and consistent safety program helps reduce workers’ compensation costs, but it does more than that. It also helps:

Create a more positive work environment
Boost employee morale and retention
Improve productivity and job satisfaction
Support long-term business success

We are here to help

At PDCM, we work alongside our clients to build smart safety strategies that make a real difference. From OSHA support to training, audits, and more, we are here to help you protect your people and your business.

If you have any questions or need further clarification, please contact Don at 319-234-7060 or dpatnode@pdcm.com

Written by
Don Patnode