How Construction Companies Can Lower Workers’ Comp Costs

In construction, injuries happen, but that doesn’t mean you can’t control the cost. Rising workers’ compensation premiums often follow a pattern of frequent or severe injuries, which are usually preventable with the right systems in place. Fortunately, contractors can reduce costs by building a competency-based safety program​.

5 Ways to Lower Workers’ Compensation Costs in Construction

  1. Develop OSHA-Compliant Safety Programs
    Start by creating written programs that meet or exceed OSHA standards. Address common issues like fall protection, PPE usage, and lifting techniques. A solid safety plan is not only required, it reduces incidents and fines.
  2. Integrate Safety into Daily Operations
    Safety can’t live in a binder. It needs to be part of the job site culture. Train foremen to lead by example, reinforce daily safety checks, and make it clear that safe practices are an expectation, not a suggestion.
  3. Investigate All Incidents – Even Minor Ones
    Many companies ignore “first-aid-only” injuries, but those minor issues often highlight patterns that lead to bigger problems. Investigate every incident to find the root cause, and adjust your training or procedures to prevent reoccurrence.
  4. Train for Competence, Not Just Compliance
    The goal of training should be competence, not just box-checking. Employees and supervisors must be fully prepared to do their jobs safely and efficiently. When your crew knows the risks and how to manage them, claims go down.
  5. Audit and Improve
    A safety program is only as strong as its last update. Regular audits keep safety policies relevant and effective, ensuring continuous improvement and cost control.

Why It Matters

  • Lower claims = lower premiums
  • Fewer incidents = better productivity and morale
  • Better safety = stronger reputation and retention

Get Started Today

If your workers’ comp rates are too high or if you’re just ready to get ahead of rising costs, consider a full review of your safety program.

McHugh Insurance Group can help you implement solutions that make sense for your team and your bottom line.