L&I’s 4.9% rate increase for 2026 highlights what employers already know: some workers’ comp costs are out of your hands. But the idea that “workers’ comp is just a tax you can’t avoid” is a myth. You actually have several high-impact tools within your control—tools that can directly reduce your premiums.
Here are five controllable strategies that move the needle the most.
1. Lead with Intentional Safety
Preventing injuries remains your most effective cost-control tool. That starts with building a culture of care supported by safety leaders who can coach your team, solve problems early, and guide your prevention efforts.
- If your safety culture needs strengthening, watch our webinar recording on creating and sustaining trust-based, accountable safety leadership.
- Ask your workers’ comp provider to analyze your claims data and identify high-frequency or high-severity incident trends, along with specific prevention recommendations.
Combining leadership with actionable data turns good intentions into meaningful, injury-reducing results.
2. Prioritize Your Light Duty and Return-to-Work (RTW) Program
LD/RTW continues to be one of the strongest ways to control costs while helping employees stay connected to work. Even small missteps can be expensive, so rely on your claims manager for guidance.
- If you haven’t created a “grab-and-go” RTW packet for supervisors—recommended in our Light Duty and Return-to-Work Strategies webinar—now is a great time to get one in place.
3. Evaluate Each Claim for Kept on Salary (KOS)
KOS works best when it’s intentional—not automatic. The key is knowing when the claim-specific math makes it worthwhile.
- If your provider isn’t already evaluating claims for KOS, ask whether they can complete that analysis and forecast the financial impact. It’s time-intensive and tool-dependent—but absolutely doable.
Smart use of KOS can deliver significant savings. For a quick tune-up, check out these 5 KOS myths to be sure your strategy stays on track.
4. Review Claims Data Regularly
Frequent, informed data reviews help you:
- Spot trends
- Catch potential cost-drivers early
- Make better decisions about KOS, LD, and prevention efforts
If you review claims data regularly, you’re ahead of the game! If not, request at least an annual review so the insights can guide smart decisions and keep you proactive instead of reactive.
5: Choose the Right Workers’ Comp Partner
Whether you participate in Retro or not, the partner you choose matters. Look for a team that is proactive, responsive, and invested in lowering your costs—not simply processing claims.
- If you’re unsure how your current partner measures up, run through our quick 5-question rating guide to see whether they’re meeting your needs.
Focus on What You Can Control
Rate increases may be unavoidable, but your claims outcomes aren’t. By strengthening safety, using KOS strategically, supporting RTW, and staying on top of data, you can meaningfully reduce long-term costs.
If you want help applying these strategies or evaluating your current program, we’re always ready to talk workers’ comp.
