Although having workers comp insurance saves employers money on medical expenses and damages, without experience in the field, it is easy to make mistakes when purchasing, renewing, and managing workers’ compensation policies.
As a staffing firm owner and operator, it’s imperative that you understand the possible negative effects that can come with inaccurate or delayed claims reporting.
Accurate workers comp not only saves you money, but it protects your business legally – and equally importantly, your client’s as well.
The best solution for accurate claims reporting is to ensure that it is part of your company’s culture. This means everything from visiting client sites to your relations with your employees…. both your internal employees and the candidates you place.
Besides the major fact that when an employee is injured, there are many other negatives surrounding lax treatment of workers comp claims.
Here are just a few:
- A delayed or inaccurate claim damages the crucial sense of trust between you and your employee. This is true of any business but staffing in particular depends on clear and fair communication with the candidates you place.
- In addition, other employees will hear about this and overall morale will be affected when a co-worker’s claim has not been addressed promptly.
- Other opportunities are lost. For example, the ongoing communication between employee and employer that encourages an employee to return to work is delayed when claims are not reported promptly and there is little follow-up with the injured party.
- Another missed opportunity is that without investigating and reporting claims, you lose the chance to prevent future incidents and losses.
While workers comp insurance goes up and down, best practices remain the same. They include screening client companies, (looking at their OSHA logs and Mod rate); screening candidates; and having accurate maintenance of workers’ compensation classiﬁcation codes.
In addition, when an injury does unfortunately occur and a claim does happen, you should have a good process in place to deal with it, including getting injured employees immediate treatment and follow up as well as getting them back to work after they have recovered.
Here are a few guidelines for encouraging accurate reporting of claims:
- Train managers on the importance of reporting claims promptly.
- Make sure you have a good rapport and contact at the client site.
- Make sure you have a plan in place for following up with injured employees.
- Have written procedures on the claims process and assign a back-up contact in the event the manager is absent…including email contacts.
- Encourage employees to report all claims, even if they don’t think they are serious. This is especially important because as we know injuries can worsen over time.
- Make sure that your employees understand that there are no negative repercussions for reporting a claim…and walk that walk.
Reporting all claims accurately and on time can provide an opportunity to investigate each particular accident in hopes of learning how you can prevent any future, similar problems and can help to keep insurance costs down.
Establish a company culture that emphasizes the need to report any and all claims promptly and that employees won’t be punished for doing so.
A good plan is a triple win, for you, your clients, and your candidates. For more advice and solutions, give us a call today.