How to minimize workers’ comp risks
There are many coming changes in workers' compensation that you should be aware of, as well as new ways to control workers' comp costs that affect your business. Experts disagree on which of these changes will have the most impact, but most agree on one thing: Workers' compensation insurance will be insane in 2014.
In many states, rates will increase as the amount of money insurance companies charge continues to rise. In some states, there will be slight decreases, but don't get too excited. Even in these states, insurers are being more selective about what companies they choose to cover. What the rate increases mean is that you'll be writing a bigger check in 2014, even if your business hasn't grown substantially.
There are several steps involved in managing and controlling the claims factors that can cause your premiums to rise. The first is your hiring process. It's critical that you hire employees who are fit to do the job. The best way is to offer them the job using a conditional offer of employment form. This explains what the job is, asks employees if they have any conditions that may prevent them from doing the job safely, and contains a very important paragraph stating that you're offering this job contingent upon receiving a medical opinion that the applicant is mentally and physically able to perform all the duties the position requires.
The next step is to have a physician complete a medical history questionnaire and perform a thorough exam on the applicant. The questionnaire will delve into the applicant's medical history by which the doctor will be able to deliver an informed opinion on any restrictions the applicant may have.
This allows you to prevent employees from working at your business who are unable to do the job safely. The goal is not to prevent employees from getting the job, but to prevent those unable to do the work to keep from getting hurt on the job. When someone gets injured, it's bad for them and for your business because every single dollar the insurance company spends on your employees' injuries impacts what you pay for workers' compensation.
Once you have employees on the job, make sure they perform their work safely. It's critical to train employees in the equipment they use. It's also important to have safety training and to build a safety culture that makes it crystal clear that doing a job in an unsafe manner isn't acceptable, and when someone isn't following safety protocol, their fellow employees should call them out on it. You should also visit www.osha.gov and examine other safety resources.
Having a safe workplace will prevent the vast majority of employee injuries, but there will occasionally be an injury. When it happens, it's very important that you have a return-to-work or transitional duty program in place for employees to get back on the job as quickly as possible. This is important for several reasons, notably this one: When employees are back at work, it's been proven that they get better faster, because they're moving around and actively recovering. A study from the RAND Corp. found that companies with written return-to-work programs returned their employees to full duty 46 percent faster.
While premiums may rise, you can control your workers' comp costs by hiring the right employees, having a safe workplace, and creating a return-to-work program that brings injured employees back as quickly as possible. That can help you maintain your sanity in the quickly changing world of workers' compensation.
Kevin Ring is director of community growth for the Institute of WorkComp Professionals, based in Asheville, N.C. Contact him at Kevin@workcompprofessionals.com.
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