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Controlling Your Small Company's Workers' Compensation Costs

Law Blog

All employers know that maintaining workers' compensation insurance is important when it comes to ensuring the safety and protection of employees. Workers' compensation costs can climb quickly, costing your small company money that could be better spent elsewhere.

Here are three tips that you can use to help reduce your company's workers' compensation costs in the future.

1. Provide modified duty options for injured employees.

When an employee suffers a work-related injury, he or she may be unable to perform the duties associated with their original position. This means that the employee must stay home until fully healed, collecting workers' compensation benefits throughout the duration of this break.

You can easily reduce your workers' compensation costs by giving your employees the opportunity to return to work as early as possible. Providing modified duty options that allow injured employees to work in another position whose duties don't agitate an injury will get your employees back to work as quickly as possible, reducing your overall workers' compensation costs in the future.

2. Invest in onsite medical evaluations.

If the positions available through your small company are labor-intensive, it can be beneficial to invest in onsite medical evaluations for your employees. Having a nurse available to conduct routine evaluations of reported injuries will ensure that your employees are able to receive the medical care they need to address minor injuries before they become more serious.

Treating an injury as soon as possible can help to reduce recovery time, allowing your company to reduce the amount of each workers' compensation claim filed by injured employees in the future.

3. Work with an attorney to prevent fraud.

Workers' compensation fraud can be a serious and costly problem for small companies. While many of the claims filed by injured employees are legitimate, as many as 2% of the claims filed each year are fraudulent. Some examples of fraudulent claims include an employee exaggerating the extent of his or her injuries, filing a false claim, or continuing to work elsewhere while collecting benefits through your company.

Each time an employee files a workers' compensation claim, you should review the case with an experienced attorney to determine if fraud is present. Combating cases of workers' compensation fraud in court will help deter fraudulent claims in the future, allowing you to reduce your workers' compensation costs over time.

Finding ways to control the amount of money your small company spends on workers' compensation claims is important to the success of your business. Provide modified work for injured employees, invest in onsite medical evaluations to identify minor injuries, and work with your attorney to prevent fraud if you want to lower your future workers' compensation costs.

For more information, contact local professionals like Erickson Law Office.


12 January 2017