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3 Ways to Help Reduce Workers’ Compensation Claims

4 Mins read

Liberty Mutual’s Workplace Safety Index reports show that US employers spend over $1 billion weekly on compensation claims. The number of non-fatal workplace accidents eligible for these compensations was over 2.7 million cases in 2020.

With employers expanding their businesses and hiring more people, these costs will only rise. They can be a heavy financial burden to companies. Hence, business owners should think ahead and devise a plan to avoid them.

The main contributors to the injuries that necessitate these comp claims are unsafe working environments, inexperienced staff, and out-of-shape employees. The most effective solution is to address each of these issues before they cause injuries. That is what we do to help businesses reduce their comp claims. Read on to learn more about comp claims and the three ways we help companies reduce them.

What Are Comp Claims?

Workers’ compensation, or workers’ comp, is a mandatory program to protect employees in case of injury. Compensation laws are regulated locally and require employers to pay for them. Workers do not have to contribute any money toward this type of insurance.

They can demand it if they become ill or injured in the workplace. In case of accidents, they can even request footage from CCTV security systems to support their claims. Employees are entitled to make such claims due to the pain and suffering they have endured because of their injuries.

The compensation they receive may be in the form of cash benefits, healthcare benefits, or both. Its goal is to provide benefits to injured workers and ensure they are compensated for their lost wages due to missing work.

What Factors Affect the Cost of Workers’ Compensation?

The cost of workers’ comp insurance can differ based on the following factors:

  • The Size of Your Payroll. The larger your payroll, the higher the cost of comp coverage for your workers.
  • Your State. The laws of your state may affect the price of compensation coverage for your staff.
  • Claims History. The higher frequency of claims reflects safety issues with your business and affects the premium costs.
  • Your Industry. Higher-risk industries must pay higher prices for comp insurance.

3 Ways You Can Reduce Workers’ Comp Claims

Workplace injuries and comp claims cost companies millions of dollars. They also damage companies’ reputations and negatively affect their bottom lines. Whether you have a small or large business, these comp claims can impair and even destroy your company.

So it’s essential to try every solution to reduce them. Here are three of the effective strategies we use to ensure businesses incur lower comp claims.

 1. Using Ergonomics and Matching the Employee to the Job

Preventing injuries is the first step to reducing comp claims. That step is possible with the use of ergonomics. No matter what task your employees perform, they are prone to injuries if their working conditions and responsibilities don’t fit their equipment and physical capabilities.

Workplace ergonomics can reduce costs by ensuring this fit exists. Ergonomics is a scientific solution that matches the tasks and the work conditions with the employees and their limitations. Ergonomists can assess your workplace and determine whether the environment and tools meet the physical demands of the tasks you’re asking your staff to perform. They will identify risk factors and make improvements to mitigate and eliminate them, creating a safe space where your employees can work without getting injured.

Ergonomists can also educate your employees on proper body mechanics for demanding tasks. By working with correct body forms, your employees can take a step to prevent injuries and avoid comp claims.

 2. Boosting Employees’ Health and Educating Them On Workplace Safety

The steps you must take after an employee gets injured at work are time-consuming and costly. You can avoid them entirely by encouraging your employees to live healthier lifestyles. Studies show that employees with health issues get injured easily, leading to higher compensation claims. For instance, those with a risk of depression cost companies 70% more than others. Meanwhile, employees suffering from obesity experience more workplace injuries.

Aside from the medical costs, unhealthy employees with bad habits like smoking or excessive drinking take more time to recover from injuries. So encouraging employees to live a healthy lifestyle and exercise is a great way to avoid comp claims. With our personalized health and workout programs, you can do just that. Plus, prioritizing your employees’ health will boost their morale and make them more productive.

While educating your employees on their health, you can also educate them on workplace safety. Encourage them to report hazards and offer solutions for fixing them. Make them a part of your injury prevention efforts to create a long-lasting culture of safety at your workplace and avoid hefty compensation claims.

 3. Increasing Employee Retention

A common reason for workplace injuries is the inexperience of new employees. You might be working with a new team because your more experienced employees have left. Losing your staff can happen if you don’t provide a safe working environment and do not care about their health.

You can retain your current skilled employees by showing that you care about their well-being and investing in an injury prevention program. They will feel appreciated and safe. Hence, they will stay loyal to your company and will want to keep working in the favorable conditions you have provided.

On the other hand, training new employees and teaching them the safest, most efficient ways to perform their jobs can take years. You can lose hundreds of thousands of dollars in comp claims during this time.

Start Protecting Your Employees to Reduce Comp Claims

No matter what kind of business you run, your employees can get injured without the proper precautions. We can help you avoid the direct and indirect costs of these injuries.

You can reduce workers’ comp claims significantly by matching employees to their tasks, boosting their health, educating them on workplace safety, and providing a favorable work environment to keep them with the company. So start protecting your employees today to avoid the hefty costs of injuries.

Aaron Smith is an LA-based content strategist and consultant in support of STEM firms and medical practices. He covers industry developments and helps companies connect with clients. In his free time, Aaron enjoys swimming, swing dancing, and sci-fi novels.

Workplace safety stock image by kenary820/Shutterstock

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