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What Challenges Affect Manufacturing Businesses in Regard to Workers' Comp?
Manufacturing businesses face unique challenges when it comes to workers’ compensation, primarily due to the high-risk nature of the industry. Employees frequently work with heavy machinery, hazardous materials, and complex production processes, increasing the likelihood of workplace injuries. Even with strict safety protocols, accidents such as slips, falls, repetitive motion injuries, and equipment-related incidents are common. These injuries not only impact employee well-being but also drive up insurance costs, creating financial strain on employers.
Another major challenge is managing workers’ compensation claims efficiently while staying compliant with state and federal regulations. The claims process can be complex, requiring detailed documentation, timely reporting, and coordination with insurance carriers and healthcare providers. Without proper oversight, claims can spiral out of control, leading to costly disputes, delayed return-to-work programs, and potential fines for non-compliance. Employers must also keep up with changing workers’ compensation laws, which vary by state and can significantly affect coverage requirements and costs.
Rising insurance premiums present another obstacle for manufacturing businesses. High claims frequency and severity can lead to increased workers’ compensation costs, making it difficult for employers to secure affordable coverage. Many businesses struggle to find a balance between maintaining adequate coverage and keeping expenses under control. Without strategic risk management practices in place—such as safety training, injury prevention programs, and proactive claims handling—manufacturers may face unsustainable cost increases that impact profitability and long-term growth.
Manufacturers Looking for Coverage Often Report Obstacles
Workers’ compensation insurance is one of the biggest challenges for manufacturing companies.
High (and Rising) Costs
Workers’ compensation costs are high and can quickly spiral out of control if not managed correctly.
Lack of Options
Companies don't have many places to turn in the marketplace to help them solve their workers' compensation challenges.
Poor Claims Management
A lack of options leads companies to overpay for subpar claims management, which ultimately pushes costs even higher.
Find Flexibility
Do you feel as if you are locked into a workers' comp system in which you are overpaying for subpar outcomes? You are not alone. That is because the
workers’ comp system is broken.
Be Proactive
The best way to control costs and reduce risk is to closely manage workers' comp claims and every other step in the process. This is what we do. We call it
Proactive Claims Management.
Control Costs
The key to controlling workers’ comp costs both in the short and long term is to work with a partner whose interests are aligned with yours.
Work with a partner who only wins when you win.
How Much Can Does Workers' Compensation Coverage Typically Cost for a Manufacturing Company?
The cost of workers’ compensation coverage for a manufacturing company varies based on several factors, including the size of the business, the type of manufacturing work performed, the company’s claims history, and the state in which it operates. Insurance premiums are primarily determined by the industry classification code, which reflects the level of risk associated with specific job roles. Since manufacturing involves heavy machinery, repetitive motions, and potential exposure to hazardous materials, premiums tend to be higher compared to lower-risk industries.
A company’s Experience Modification Rate (EMR) also plays a significant role in determining workers’ compensation costs. Businesses with a history of frequent or severe claims will face higher premiums, while those with strong safety programs and low claim rates may qualify for lower rates. Employers can take proactive steps to control costs by implementing workplace safety initiatives, injury prevention training, and return-to-work programs. Partnering with a workers’ compensation expert like Alloy Employer Services can help manufacturers navigate cost-saving opportunities, manage claims efficiently, and ensure compliance with regulations, ultimately leading to more predictable and manageable insurance expenses.
Don't get stuck with a workers' comp manufacturing partner whose interests are not aligned with yours.
We only succeed when YOU succeed.
As our customer, you are able to shift your risk. Alloy becomes responsible for all risk and is therefore proactive and watchful of all steps in the workers' comp process. The way we work, we only win when you win.
Proven Results
The average Alloy client saves over 20% on their workers' compensation premiums immediately after onboarding, and that's just the beginning!
Escape the Status Quo
Recent industry changes make it easy to ditch high fees and sub-par service for a true partner who's aligned with your goals.
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Get a Free Workers' Comp Quote
Get an absolutely free, no-obligation analysis of your company’s Workers’ Compensation program including rates and claims management performance.