Workers compensation is required in most states for businesses that have one or more employees. However, the requirements vary from state to state. The purpose of this insurance is to compensate employees who are injured on the job and no longer able to work.
Therefore, businesses that entail a high level of risk should be more inclined to protect themselves and their workers. So, if you run a towing business you’ll definitely fall into this category! It’s important to note that this insurance coverage doesn’t come cheap, and as a towing company, it would be wise to shop around for a pocket-friendly insurance policy.
Let’s discuss further the importance of workers compensation for towing businesses.
Why Do Towing Businesses Need Workers Compensation?
Workers comp can offer monetary benefits to tow truck drivers who get injured on duty. Unfortunately, there’s a lot of risk in the towing industry due to the heavy machinery, manual labor, and so forth. Therefore, to limit the number of injuries on the job you need to hire skilled and experienced drivers to perform the tasks.
Although extensive training and experience lessen the likelihood of one of your drivers getting injured, the risk doesn’t go away completely. Fortunately, that’s where workers compensation comes into play.
For instance, if one of your drivers injures their back from straining to lift a heavy load then their medical bills and lost wages will be taken care of. Most policies even offer death benefits in some cases. It’s also beneficial for towing companies because it protects them from hefty lawsuits that could lead to possible bankruptcy.
Ways to Lower Your Rates
You should know that the number of employees you have and the number of hours they work directly affect the cost of your workers compensation insurance. Some towing businesses may be alarmed after learning the cost to insure multiple drivers. However, as a business owner, you must fulfill your obligations to your workers if they sustain life-altering injuries.
It’s important to note, your rates will vary from state to state. For instance, an auto towing business in Washington may charge $3 per employee per hour. In that case, if you have 3 drivers who work 40 hours a week you’d be paying close to $400 a week!
Let’s discuss some ways you can lower this amount.
Implement a Safety Program
Which company is more likely to pay a higher premium, one where towing accidents are frequent or one where they’re not? The second one! To limit the number of injuries on the job you can introduce a safety training program for drivers.
This program should include in detail the following:
- The importance of personal protection equipment
- How to conduct pre-trip inspections
- Proper towing procedures
- Safety protocols
- The risks on the road
- Defensive driving techniques
Shop Around and Compare Quotes
A good rule of thumb is to never go with the first quote you’re given. It’s in your best interests to shop around and explore policies with multiple different carriers. This way you’re confident you’re receiving a competitive quote and adequate coverage.
Create a Return to Work Program
Immediately file a claim with your tow truck insurance company when one of your workers sustains an injury that’s impeding their ability to work. Filing a claim later than necessary could introduce a few discrepancies and prolong the process.
It’s important to support your employees and encourage them to return to work once they’ve recovered.
While you must care for your workers and ensure safe working conditions, minimizing expenses and maintaining profitable earnings are also important. Workers compensation for towing businesses is absolutely crucial considering the nature of the job.
Our team of towing experts can help you in your search for workers compensation insurance. They can also give you advice on how to lower your rates and ways to promote a safe work environment.