Does Non-subscription Provide an Immediate Cost Savings and Results?
One of the major disadvantages plaguing the workers’ compensation system is that employer workplace safety programs are slow in showing results. In fact, the methodology used to determine workers’ comp premiums postpones financial rewards for reducing employee injuries three, four or more years after the advent of a successful safety effort. A nonsubscriber, on the other hand, can realize immediate cost savings for instituting a workplace safety program without having to wait for the experience rating to catch up as in workers’ compensation. This enables the nonsubscribing employer to quickly respond with appropriate actions if costs related to workplace injuries suddenly rise. Also nonsubscribers can “text” the effectiveness of workplace safety programs by measuring results immediately unlike workers’ compensation where the employer may find out two or three years down the road that the safety program had no impact on premiums.
