Employers are required to provide Workers Compensation insurance for all employees. You can help your clients by educating them about this coverage.
Workers Comp covers:
- Medical care
- Medical costs
- Temporary disability
- Permanent disability
- Vocational rehabilitation
- Death benefits
The spiraling costs of Workers Compensation make this insurance one of the biggest items in the budget of many companies. A single claim today easily could cost $25,000. Employers pay for that claim over and over again in increased insurance premiums for years to come. By explaining to clients how Workers Comp works, you may help them reduce their costs and gain their trust at the same time.
EXPERIENCE RATING
Workers Comp insurance is not just another fixed cost. Since most companies are experience rated, the fewer claims a firm has, the lower the premium will be. Businesses must take two crucial actions to improve their experience rating: (1) implement a safety program and (2) educate employees to ensure that they understand the proper actions to take if they get injured.
Employees are required to report all work-related injuries or illnesses in a timely manner. Failure to report an injury or illness within 30 days may affect the employee's right to benefits.
EMPLOYEE TRAINING
A safety program should cover general safety rules, the proper procedures for lifting and carrying, how to handle equipment and hazardous materials safely, and what to do in case of an emergency. When educating employees about safety, business owners should also address stress and repetitive motion problems.
It's wise to consider holding training sessions for employees. Give each employee a safety booklet and have them sign that they have read and understand the material inside.
WRITTEN HANDBOOK
All employers should have a written safety and hazard program. OSHA and Workers Compensation insurers are requiring written guides. There are hundreds of independent safety consultants who prepare manuals for client companies. BEST'S SAFETY DIRECTORY (available from the A.M. Best Co.) is a good source of names of safety consultants.
Reducing Workers Comp costs means being proactive and reducing risks. All employees including managers, office workers, and workers in every department should receive and agree to abide by the business' safety rules and guidelines. But it's not enough just to implement a safety program and train employees. You must also monitor the program to make sure that employees are following the rules.