Author Box
Articles Categories
All Categories
Articles Resources

Effective Ways to Reduce Workers' Compensation Claims and Related Costs

January 15, 2012 | Comments: 0 | Views: 181

Workers' compensation insurance safeguards the employees, injured in the course of employment. In many states of US, it is a mandatory policy and is required by every company with employees.

Despite of all the preventive measures, instances of workplace injuries are increasing every year, forcing the business owners to spend huge amounts on compensation claims. According to U.S. Bureau of Labor Statistics (BLS), nearly 3.1 million non-fatal workplace injuries and illnesses were reported among private industry employers in 2010.

Hence, it is necessary for every employer to implement effective safety measures, not only to reduce compensation claims, but also to improve workplace safety and employee security.

Employing a comprehensive program, tailored to suit the organization's specific needs and goals, helps the organization decrease the frequency as well as the severity of injuries at workplace. Following are few ways that can help you in establishing a risk free workplace, which further aid in reducing workers' compensation claims and related costs.

Implement risk controlling measuresEmployees working in industries, manufacturing plants, construction sites, etc., are often prone to on-job injuries and accidents. Working with heavy equipment using hazardous material raises employee safety concerns. Hence, every employer needs to follow a series of steps to improve workplace safety. These steps include - risk identification, risk assessment and risk control.

• Risk identification is identifying the possible hazard/risk. A hazard is anything that could hurt the employee or any other third party. For example, damaged or frayed electric cables are potential sources of accidents at workplaces.

• Risk assessment involves finding of all the potential outcomes of identified risks/hazards and the seriousness of the damage they could cause. In the above mentioned example, frayed electric cables, the harm could be an electrical shock.

• Risk control is nothing but fixing the hazards. The employer should eliminate the hazard; if not, should at least try to make hazards less dangerous. Replacing the damaged electric cords with new ones is one of the risk control measures to avoid electrical shocks.

Risk controlling measures vary according to the nature of the vulnerabilities. However, effectiveness of any step lies in proper review and implementation of safety measures on a regular basis.

Provide safety training to the employeesThe next best way to reduce workplace injuries is by emphasizing on-job safety during training. Provide safety training to all the employees about safe handling of equipment, possible risks in the workplace, company safety rules and procedures, emergency procedures (usage of fire extinguishers, etc.), importance of personal protective equipment required on the job, etc. This kind of training helps employees acquire all the skills and knowledge required to be safe in the job location.

For instance, if a worker's job involves working with sharp objects like broken glass, rusty metals, etc., his potential risks would be cuts and punctures on the skin. These risks could be avoided by providing hand gloves, and by offering an effective training on how to handle such things safely.

Be aware of the fraudulent claimsInsurance fraud occurs when the employees purposely provide some false information to receive the benefits of the claim. According to the Coalition Against Insurance Fraud, insurance fraud costs consumers, employers and insurance carriers at least $80 billion each and every year. Among which, worker's compensation insurance fraud alone accounts for a considerable percentage.

Use efficient software to track claim costsAutomating and tracking your workers' compensation claims process is another best way to reduce claim costs. Using effective claims management software eases your work as well as makes the process more accurate. With the help of such software you can instantly see all the expenses by the employee, type of injury, etc. It thus helps you save time and money besides taking control of your workers' compensation claims.

A comprehensive workers' compensation program always helps your organization do much more than simply saving the claim costs. It makes your workplace safer, secures employees and finally saves your organization from fraudulent claims.

JDi Data Corporation has provided insurance claims software since 1992. JDi Data offers web based workers compensation software and also claims systems for insurance claims departments, third party administrators and risk managers to administer property, casualty and general liability claims. JDi Data has built a reputation in quality claims management software with special emphasis on specialty lines and complex litigation.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Claims Management Software


Insurance Claims Software


Workers Compensation Software

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williamsl Insurance > Workers Compensationl July 08, 2012 lViews: 221

Engrossed indemnity companies have been a popular tax and business planning tool since many years. Earlier, only multinational firms used engrossed indemnity companies, but that concept has changed

By: Jennifer Boeriol Insurance > Workers Compensationl June 30, 2012 lViews: 180

Every business owner in the UK is governed by some regulation or other. For any business that employs staff, one of the most important regulations is actually a legal requirement as laid down in the

By: George McGonigall Insurance > Workers Compensationl June 21, 2012 lViews: 186

Income protection insurance generally provides benefit when you become unemployed temporarily due to injury, accident, or illness. Even though it covers 75% of your gross annual income, not many

By: Jeff R Triboletl Insurance > Workers Compensationl June 20, 2012 lViews: 166

A safe workplace is obviously essential for your employees' health and well-being, but it is also important when you consider the insurance costs for workers compensation. Making sure your workplace

By: Kelly C. Williamsl Insurance > Workers Compensationl June 17, 2012 lViews: 188

The very last thing you look forward to is your workers' compensation audit. It takes you at the very least a few days to assemble everything the auditor really wants to see: huge binders and stacks

By: Ellen Yeel Insurance > Workers Compensationl June 17, 2012 lViews: 190

Whether you are hosting your website on your own server or with a web hosting service, proper functionality of Domain Name System (DNS) is essential for ensuring uptime and performance of your

By: Nate Rodnayl Internet Businesses > Web Developmentl June 08, 2012 lViews: 226

Cameras enable us to capture the most memorable moments of our life. This is the reason many of us have at least one. Cameras, professional or personal are expensive as well as delicate to handle. A

By: Nate Rodnayl Insurancel June 07, 2012 lViews: 140

Getting your car fitted with GPS navigation system is a sensible idea. It is indeed a need rather than a luxury. Fitting GPS navigation makes it easy for you to locate fuel refilling station, finding

By: Nate Rodnayl Automotive > Mobile Audio Videol May 21, 2012 lViews: 184

The need for security systems has increased rapidly with the increasing number of criminal activities at various places including homes, workplaces and public spaces. Whether yours is a small

By: Nate Rodnayl Home Improvement > Securityl April 25, 2012 lViews: 219

Manufacturing business is one of the complex business types, which involves complicated business operations that may put the capitals at risk. The challenges faced by the business owners are unique

By: Nate Rodnayl Insurance > Commerciall April 24, 2012 lViews: 181

A TCP/IP monitoring system enables a z/OS network administrator to proactively seek out network issues like poor response times, limited accessibility, dropped connections, etc., and avoid them

By: Nate Rodnayl Computers & Technology > Softwarel April 17, 2012 lViews: 226