Is everything possible being done to protect your company from the costly impacts of workers compensation claims? As an employer, you know that injuries will happen, but you can reduce frequency and cost by understanding common dynamics and following expert recommendations.
Minor Injury, Major Claim. Small injuries often produce large claims. Some statistics show that while 80% of workplace injuries are relatively minor—requiring first aid or a physician visit—sprains and strains account for a large share of costs.
Falsified or Exaggerated Claims. Completely falsified claims are a small portion of cases, but employers can reduce exposure with measures such as tip lines, video surveillance, and drug screening when appropriate.
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Addressing exaggerated claims
- Get injured employees immediate and appropriate treatment.
- Even if duties need temporary modification, return employees to work as soon as medically safe.
- Ensure supervisors communicate with injured employees and convey concern and support.
- Do as much as possible to reduce disruption employees face after injury.
- Assess and address behavioral issues that could be driving an employee’s disability.
Observing Patterns. Experts have identified recurring claim patterns in certain industries and employee groups; for example, equipment operators who skip eye screenings may have more injuries.
Other patterns include higher injury rates among overweight employees and longer healing for employees with chronic conditions such as diabetes.
Overexertion—doing too much, too fast, or too frequently—is a primary cause of sprains and strains and often results from unsafe acts rather than unsafe conditions.
Claim reduction strategies
Claim Reduction. Start at hiring by confirming candidates can meet the physical and mental demands listed in the job description.
- Excellent workplace safety programs.
- Efficient communication programs that allow you, injured employees, and insurance adjusters to coordinate easily.
- A post-injury protocol requiring immediate reporting of injuries to the appropriate personnel.
- Routing injured employees to providers who specialize in occupational injuries.
- Staying in touch with the injured employee and their medical provider and accommodating any recommended restrictions on return.
For help designing or improving those processes, consider professional resources such as Claims Management Services & Workers Compensation Insurance.
Cost Mitigation. Employers can reduce financial impact with transitional duty programs that let injured employees work in a limited capacity while recovering.
Referencing treatment guidelines can help set expectations for typical recovery times, and on-site clinics or partnerships with physical therapy networks can speed return-to-work outcomes.
For broader information on benefits and employer responsibilities, see Understanding Workers' Compensation and Employee Benefits.
Wellness: don’t be afraid. Some employers worry wellness programs could cause injuries, but the net benefits—faster healing and fewer claims—usually outweigh the risks.
Success depends on leadership commitment and acceptance throughout the organization; if you need help implementing these steps, talk to an agent.
Frequently Asked Questions
How quickly should an injury be reported?
Report injuries immediately to the designated person or department so care and documentation begin without delay.
What is transitional duty and why does it help?
Transitional duty gives injured workers modified tasks during recovery, which helps maintain income and speeds full recovery.
When should I refer an employee to an occupational specialist?
Refer employees to occupational specialists for work-related injuries or when the provider needs workplace context for treatment and restrictions.
Can wellness programs reduce workers' compensation costs?
Yes; wellness programs that improve fitness and manage chronic conditions can lower injury risk and shorten recovery times.