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Four ways to mitigate workers’ compensation risk

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Four ways to mitigate workers’ compensation risk

Four ways to mitigate workers’ compensation risk 5184 3456 Heidi McLean

Who needs workers’ compensation? Anyone with employees, it turns out. Workers’ compensation provides wage replacement and medical benefits to employees injured in the course of employment. Just like any other insurance, it’s one you hope you’ll never need. Still, if you do need it, you’ll be so glad you have it. Employers that ensure worker safety and implement best practices before they need them are in the best position to protect employees, keep claims manageable, and maybe even keep premiums down.

Four ways to mitigate workers’ compensation risk

Prevent the need for claims:

Chase prevention like you would chase the crisis or you’ll certainly end up chasing a crisis. Make regular safety meetings, ongoing education, and performance metrics standard procedure. If you don’t have the budget to implement every possible safety measure, you don’t have the budget for the project. The best workers’ comp claim is the one that never happens.

Implement and/or refine your claims management process:

Instead of scrambling to figure out how you’ll handle a claim if it comes up, take steps ahead of time. Make sure that reserves are accurate. Have a standard operating procedure. Decide who will talk to the adjuster and within what time frame. Taking the time to lay out your processes while your brain isn’t in crisis mode means sounder decisions. The added benefit is that it will reassure your adjuster that you’re engaged and motivated to reach a speedy resolution.

Implement a return to work program:

Have a plan for injured workers who have been cleared for modified duty. These measures reassure insurance companies while demonstrating professionalism to employees.

Invest in accurate worker classification:

An independent contractor filing a workers’ comp claim can easily land a well-intentioned company on IRS and DOL radar screens. This happens with surprising frequency despite the logical assumption that an independent contractor should understand the implications of a business-to-business relationship. One key aspect of a true B2B relationship is that a worker’s business activity exists independent of the employer. Preventing misclassification and communicating clearly with workers is a worthwhile preventative investment.

What’s ahead

Analysts anticipate changes for the workers’ compensation industry ahead. They expect “value-based care, political party changes in several states, and a more holistic view of patient injuries” to affect coverage in 2019. Workers’ compensation carriers may face declining profits and escalating claims costs and operating expenses. Companies that address the subject proactively will be in the best position to ensure minimal premium increases. Aside from cost, keeping employees safe is forever a worthwhile investment.

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.