Workers Compensation Claims And How Employers Should Handle Them

When a company is experience rated, any amount of money paid on a claim is going to eventually impact the cost of getting workers compensation insurance (WCI).

Workers Compensation Claims And How Employers Should Handle Them

The truth is that while some people think WCI is useful, others believe that it’s only an ineffective finance mechanism that the majority of employers should do away with. However, the real situation is a bit different. WCI is not only about paying claims. In fact, when an employee is injured on the job, the event itself and its consequences are governed by statute in all regions and product delivery to that employee can become very complicated. After all, only few employers have the required funds and expertise to provide injured employees the claims management services they require following such an event.

If the employer mismanages the claims process, then he may end up paying more money for his WCI premium. The most direct connection between higher costs and claims is through the experience modification factor. This is practically a system that effectively compares your workers compensation experience (which includes claim and payroll dollars) to those of other businesses. If your business has a lower claims experience, then this means you’re going to benefit from a lower WCI cost and vice-versa.

There are of course a series of responsibilities you have as an employer, including:

  1. Do everything you can to ensure any injured employees can return to work as fast as possible.
  2. Keep in close touch with your insurer’s adjuster.
  3. Try to close claims as soon as possible.
  4. Review each claim carefully and report each of them to your insurer.

When it comes to WCI claims, it’s a fact that sooner or later they will occur. However, when on one of your employees is injured, you need to make sure that your WCI works properly and that he can benefit from the right rehabilitation and medical services required to get better and return to work.

However, if  WCI is improperly managed, then this is going to certainly impact your WCI cost in a negative manner. To avoid such scenarios, you as an employer can take a series of steps to keep such claims under control by staying involved in the process at all times.

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