For many businesses, workers’ compensation claims are fairly rare. When one does occur, a business may not know how to handle it properly and can make some costly mistakes. Here are some of the most common mistakes businesses make with their workers’ compensation claims.
Not Processing the Claim in a Timely Fashion
If very few workers’ compensation claims have been filed in the past, the business may not have an established process for responding to these claims. Not managing the claim quickly and effectively can lead to complications later on. Companies should prioritize their workers’ compensation claims: their employees are relying upon them.
Not Getting Employees Back to Work
Ideally, an employee will have some form of “return to work” program, which will place employees on light duty until they have sufficiently recovered. This helps employees recover faster, as they are being more active, while also reducing the amount of money that has to be paid out through workers compensation. Most employees do want to return to work, they just need a little help.
Not Investigating Each Claim
While most workers’ compensation claims will need to be paid out, there are certain things that can disqualify an employee from a claim. Obvious negligence or being under the influence at work are two common things that can invalidate a claim. An investigation into the claim can help identify these issues and avoid unnecessary workers’ compensation payouts.
Not Capturing Evidence Immediately
When an injury does occur, an employer should immediately take statements from other employees, as well as collecting surveillance footage and other materials that may be necessary during the workers’ compensation claim. Like any insurance, workers’ compensation has a cap on coverage. If an employee’s injuries extend beyond that coverage, an employer may find themselves having to defend themselves in court.
Not Auditing Work Safety
The easiest way to reduce potential workers’ compensation payments is to improve the safety of the business. If an employer has issues with frequent workers’ compensation claims, it really has an issue with an unsafe environment. Regular safety audits should be performed to make sure that the site itself is safe, and that the proper safety standards are being enforced. The longer the business goes without having an injury, the cheaper its workers’ compensation premiums will be.
Workers’ compensation is strictly regulated, and any issues with your workers’ compensation claims could lead to some significant fines and penalties. Staffing agency insurance can help. Contact World Wide Specialty Programs to learn about the benefits of staffing agency insurance.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.