When the workers' compensation system was first instituted, it was devised as a cost-saving mechanism. Job safety was deteriorating, leading to an increase in accidents and injuries. Employers increasingly found themselves in court defending civil suits for work-related injuries. The workers' compensation system was seen as a way out of the problem. Today, the system is a monster, with employers spending tens of billions of dollars each year to insure their work-injury risk.

Dozens of states have turned to legal reform in an effort to control spiraling costs. Caps on recovery awards and contingency fee limits have been passed in many states, but with limited success. Other states have passed laws that provide incentives to employers who implement drug-free workplace programs.

Workers' compensation costs have an enormous impact on most employers' bottom lines, especially on those in high-risk occupations, such as construction. But by focusing on long-term objectives these expenses can be managed.

Here is a checklist that can help keep your costs down...