What is one potential benefit for employers who maintain a lower-than-average loss record in Workers’ Compensation?

Employers who maintain a lower-than-average loss record in Workers’ Compensation can benefit significantly through reduced insurance premiums. Insurers typically evaluate a company's claims history, which includes the frequency and severity of workers' compensation claims, when determining policy rates. A lower loss record indicates to the insurer that the employer presents a lower risk, which often translates to cost savings in the form of lower premiums. These reduced costs can be critical for businesses aiming to improve their financial health while still ensuring that they provide adequate worker coverage.

In terms of the other possible benefits, higher employee turnover rates and increased operational costs are generally negative outcomes that employers would want to avoid, and decreased coverage options would typically occur in situations where an employer has a poor loss record, not a good one. Thus, maintaining a strong safety record and a lower-than-average loss history directly correlates with more favorable premium rates in workers’ compensation insurance.