Tips to Cut   Workers Comp Claims

Many factors can affect your workers comp costs. But you don’t want to assume there is nothing you and your employees can do about these costs.

Review these eight factors for insights into ways you and your employees can control -- and even lower -- workers comp costs.

1. Monday Morning Syndrome. Many employees comp claims are filed on Mondays and on the day after holidays.

Be aware that some of these injuries might have occurred at the touch football game over the weekend...or while stretching and straining when doing that Sunday afternoon yard work. For the employee with no health insurance, a false workers comp claim is an inviting way to get "free" health care. As many as 10% of concealable injuries, such as sprains and strains, are reported as work injuries...when they are not.

Require that any employee filing a claim sign a statement attesting to the honesty of the claim. This simple procedure might serve as a deterrent to such workplace diseases as "Monday Morning Syndrome."

2. You may open the door for false claims if you don’t offer health insurance to your employees. Some workers may look upon workers comp as a way of getting free medical treatment, which is particularly inviting to those who have no insurance.

3. Employees’ attorneys can play a part in misuse of the system...because they are ready to jump in when an employee thinks his rights have been violated. Workers comp was not designed to cover every workplace disability. Some employees should get other types of benefits...such as disability, unemployment or retirement benefits. Employees who don’t understand this...who hire lawyers who don’t understand this...help drive up workers comp costs.

4. Some doctors aren’t helping matters either. Some doctors run newspaper ads inviting workers to come in for a FREE visit if they have symptoms such as headaches, back pains or have trouble sleeping. Probable cause: Stress.

These doctors claim to be offering their services free of charge, but it’s the employer who pays in the long run. Virtually every ailment a person can have is ammunition for a possible workers comp claim.

5. Different stresses affect men and women differently. This may affect workers comp claims...especially with the rising number of stress claims. So reduce the following stresses in your workplace.

 The six most stressful work-related events for many men are:

(1) Poor relationship with boss.

(2) Lack of support from boss.

(3) Lack of job security.

(4) Organizational politics.

(5) Lack of expected promotions.

(6) Lack of participation in decision-making.

 The six most stressful work-related events for many women are:

(1) Lack of expected promotions.

(2) Lack of job security.

(3) Requirements of job exceed abilities.

(4) Poor relationship with boss.

(5) Changes in performance standards.

(6) Lack of support from boss.

6. Employment physicals can save employers money. A few years ago, an airline involved 800 employees in a series of simple physical performance tests. From test results, the airline drew conclusions on what kind of work these employees should...and shouldn’t...be doing.

In two years, the airline found that untested workers had an injury rate of 18.3% compared to 5.1% for those tested.

7. New employees file the most workers comp claims? Employees on the job less than a year file 40% of all claims. Reread #6 concerning the importance of pre-employment physicals. (NOTE: The Americans with Disabilities Act requires that the employer give pre-employment physicals only after making a conditional job offer.) Also, institute safety and training programs and require employees to participate.

8. Practice "early intervention" and save money. Respond to workplace injuries quickly. Then, in two or three days, call the person. Show concern. The injured employee is more likely to want  to get back to work sooner. The longer the employer and the workers comp insurance carrier take to contact an injured employee, and the longer it takes to resolve any dispute with the employee, the greater the chance that the employee’s claim will grow in cost.

3-014

Save Article

Email LSSLC

Email to a Friend

Get Dashboard