How does Workers’ Compensation affect my Business?
Workers’ Compensation costs depend on the incidents that occur at your facility as well as the frequency of those incidents and can have a powerful impact on your company’s bottom line.
What are key components?
Workers’ Compensation premiums are based on the number of losses your company has incurred, the frequency of losses, and the amount of money reserved on claims. In order to address the workers’ compensation costs, focusing on these two fundamental drivers is imperative. Even the best loss prevention efforts cannot completely eliminate workplace injuries. While safety program contribute greatly, cost containment and disability management programs minimize your workers compensation claim costs once an accident occurs. In addition to investing in loss control efforts, prepare for claims by establishing and enforcing return to work programs.
What can be done?
To minimize the frequency and severity of losses, risk managers can take the following key steps:
- Allocate funds to the prevention of your facility’s most common injuries
- Regularly review workplace hazards and safety procedures with employees
- Create an accident review committee for accidents and near misses
- Implement a safety incentive bonus program rewarding safe behavior
Report claims promptly. On average, claims reported more than 10 days after an incident have total incurred values two and a half times higher than claims reported within two days from the date of the incident.
To reduce the claims expense:
- Conduct accident site investigations to preserve evidence and deter fraudulent behavior.
- Thoroughly document incidents with an accident report form.
- Require witnesses to complete a witness report form.
- Identify local occupational medicine clinics in your network that will provide you with specialized care and medical cost savings.
- Encourage injured employees to seek medical treatment at a chosen clinic upon report of the accident.
Establish an Aggressive Return to Work Program:
Establish a Return to Work policy and adopt it as part of your corporate culture. Generally, the longer injured employees remain off work, the less likely it is that they will return. Return to Work programs, get employees back on the job sooner. When designing the program, keep the following guidelines in mind:
- Educate employees and supervisors on your return to work policy and expectations.
- Establish open lines of communications with the local occupational medicine clinic you have selected.
- Invite the physician and staff to tour your facilities and review your return to work policy along with your modified job duties.
- Establish open lines of communication with the injured employee. Express concern and expectations in regard to recovery.
If you have specific questions about controlling your workers’ compensation costs, contact me today by calling me at 877-352-2121, or you can email me at hknight@clark-mortenson.com. I’m happy to assist you in planning a comprehensive loss control and return to work program.
