Businesses are legally obligated to provide workers’ compensation insurance to protect their employees from workplace injuries. Workers’ compensation costs are based on the industry and claim history of the business. While some accidents inevitable, there are ways to control costs.
Here are three ways to curb workers’ compensation costs:
1.) Set Safety Standards
Creating a culture of safety is one of the most important things a business can do to limit workplace illness and injury. Start by setting safety standards and ensure that safety procedures and documents are up to date. Next, be sure to lead by example. Hold management and yourself accountable for providing a safe work environment for all. Then, reinforce the importance of safety by recognizing excellent preventative methods that help reduce workplace accidents and injury. The smallest accidents or injuries can add up to large expenses, but following safety standards can greatly reduce the risks.
2.) Look Out for Fraud
Claims against your insurance have the potential to greatly impact your premiums. It is imperative that you look out for fraudulent claims and prevent them before they escalate. Be aware of employees with a history of suspicious claims, report injuries at the beginning of shifts, and refuse medical diagnosis. According to the Social Security Administration, nearly $6 billion is spent every year on fraudulent workers’ compensation claims alone. That‘s why it is important to watch out for these red flags and other indicators of fraud to avoid unnecessary spending.
3.) Implement Proactive Claims Management
Despite efforts to prevent injuries and illnesses, accidents happen, and claims must be made. You must be proactive. Report claims to your insurance carrier within 24 hours. Doing so ensures that your employees get the care they need right away. Quick claims reduce the likelihood of litigation costs, benefiting both you and your employees.
Lightsource HR Can Help Reduce Workers’ Compensation Costs
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