In a nutshell, workers’ compensation is a government-mandated program that pays out benefits to workers who are injured on the job or who fall ill because of the job. This typically covers medical costs, healthcare benefits, income for lost wages, educational retraining, and disability pay. While workers’ comp is a state government-mandated program, the benefits vary across states. Employees who avail of worker’s comp benefits waive the right to sue their employer for damages. Workers’ compensation claims can be very dynamic, with certain triggers that can affect claims drastically.
What does worker’s compensation cover?
Workers’ compensation is a policy that is in place to protect employees from financial losses as well as injury or illness that may be attributed to the workplace. It also protects employers from the possibility of being sued if an employee wishes to sue. Here are some of the basics that are covered with your typical workers’ comp policy:
- Medical cost coverage
- Rehabilitation and occupational therapy
- Partial wage replacement
- Displacement benefit that provides for educational retraining and skill enhancement
- Compensation to beneficiaries if the worker passes away due to their job
Circumstances that lead to higher claims
Setting unrealistic targets and business goals:
Injury and illness rates in US companies are 5-15% higher in periods where the firm beats analyst forecasts, the rate of injury and illness is also much higher compared to firms that miss or comfortably beat analyst forecasts. Employees could be compromising their own safety by overexerting themselves or flouting safety protocols that may slow down workflows in such cases. Here are a few real examples of how workers have been severely injured and have even lost their lives:
An employee at a steel mill in Texas suffered burn injuries to 60% of his body after hot liquid steel spilled onto him, unfortunately, he died in a hospital three days later.
A 21-year-old plastics worker was treated for serious burns to his hand and had to have four fingers amputated after being injured on his first day on the job at a factory in Ohio.
A flawed network of pipes and valves at a manufacturing plant in Texas led to the release of a toxic pesticide that killed 4 workers.
There are too many instances of this where US companies are facing pressure to meet earnings expectations, which can lead to added pressure on employees, and as a result, invite workplace injuries that could have been avoided. Managers also can flout or circumvent explicit safety measures such as maintenance spending on equipment and employee training. The workplace deteriorates when this happens, and workplace injuries mount up.
To avoid such injuries, the entire organization needs to be held accountable, especially senior and middle managers who are responsible for ensuring protocol and safety, with a focus on being meticulous with compliance and training. Employees should not feel pressured enough to risk their own safety for company profits.
Weather-related claims:
Employees file 10% more workers’ compensation on hot and cold days, as per the NCCI. Both, motor and cognitive performance decreases in extreme weather conditions. Poor weather outdoors will also lead to illness indoors as workers have to commute to get to work. Cold days and flu season go hand in hand, and there is always a spike in claims on cold days.
To avoid such claims, workplaces should provide hybrid work structures so that employees can avoid coming to work on days when the weather is bad.
Machinery accidents:
These claims are very common for workers who operate heavy machinery in sectors like manufacturing or construction. These injuries can be attributed to malfunctions, lack of safety training, or because of improper use. These injuries lead to very high workers’ compensation claims because the severity of the injuries is either life-threatening or if one survives, life-changing.
To avoid this sort of claim, workers safety must be prioritized over profits. Workers must be given proper training and should also be given tools that are state-of-the-art, and not outdated. Cost-cutting must be avoided at all costs because jeopardizing quality when it comes to sourcing heavy machines can be a very expensive mistake.
Vehicle-related incidents:
For workers who drive as a part of their job duties, for example, truck drivers, or delivery partners, or traveling sales reps are all at risk for auto accidents. These may happen in the parking lot, road, or highway and can lead to very high claims. Whiplash and broken bones are some of the common injuries, and claims have been made for serious injuries as well, like spinal cord injuries. These claims are most common amidst industries that rely on transportation and logistics heavily.
Business owners should make sure their fleets are regularly maintained, especially during the colder months. Workers must be trained to prioritize safety at all times and ensure that they are well-rested before long journeys.
If you are a business owner looking to secure yourself from hefty claims by getting the right kind of workers’ compensation policy that caters to your needs, get in touch.