Reducing Workers’ Compensation Claims

Everyone knows that the goal of any business is to make as much money as possible. Costly workers’ compensation claims can be a huge burden to companies trying to reach that goal.

If you’re the owner of a business, you’ll want to maintain a safe working environment to not only reduce workers’ compensation claims but keep your employees safe as well. I decided to research the best methods to help you do just that.

What is a Worker’s Compensation Claim?

First, we need to establish what a workers’ compensation claim is. If an employee is injured on the job, they are entitled to make a worker’s compensation claim. If the company accepts the claim, they are required to provide compensation to the employee, often in the form of replacing the wages lost or paying for medical bills. In exchange for the benefits, the employee waives their right to sue their employer for negligence.

Workers’ compensation claims may seem like an easy way to avoid the hassle of a drawn out lawsuit, but depending on the wages lost and medical bills incurred, they can be extremely expensive for both you and your company, The best option is to take the proper precautions to avoid workers’ compensation claims in the first place.

Utilize Testing Services in the Hiring Process

Including testing services in your hiring process can help you hire smart and avoid workers’ compensation claims. Several companies like WorkSTEPS, Inc. have pioneered evidence based tests that measure prospective employees physical abilities. This helps you hire employees that will be able to handle the physical demands required by your company, helping you stay away from injuries at the workplace.

These tests will allow you to make the best decisions during the hiring process, and are both completely objective and legal.

Create a Safety Program

Another way to avoid spending money on workers’ compensation claims is to create a company wide safety program. Such programs will allow your administration to notice any potential safety hazards and get rid of them to ensure that your working environment is as safe as possible. Many states even require companies to write safety programs — make sure to check out the laws in your respective state.

You many options when creating your work safety program. You could hire a third party business to help develop one for you, download a template online from a company for a fee, or turn to the Occupational Safety and Health Administration’s consultation program. No matter where you look, it is important to create a program that is much more than a document and truly keeps your employees safe.

Consider Joining a Professional Employer Organization (PEO)

This tip is especially beneficial for small and medium sized businesses. Join a professional employer organization (PEO). PEOs can provide the guidance needed to steer clear from workers’ compensation claims and reduce their impact if they do happen. PEOs can help you select workers’ compensation plan coverage, design a safety program, and manage relations with any injured employees.


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