We have been working with staffing agencies for years, helping them navigate California’s imperfect workers’ comp claims system. Using the power of technology, the brightest of industry experts, and industry experience, we help agencies eliminate fraud and keep costs down. There are several ways that companies can reduce how much they spend paying workers’ comp claims. Employers that improve their claims experience and catch fraud may significantly lower the amount of compensation they have to pay. These simple yet effective ways can help you save money.
1. Make Safety a Priority
By creating clear procedures and insisting that employees read and follow them, employers can greatly reduce the amount of workers comp claims they receive. Reward adherence to the safety protocols and hold accountable those that don’t follow it. Preventing accidents and situations where accidents may happen will reduce compensation claims. Instituting an atmosphere of safety and the expectations that employees must comply is key. That’s why safety and prevention is one of the top ways to lower claims.
2. Use Data
By working with Clear Spring, we can use emerging technologies to provide smarter, more adaptive insurance products. Technology can recognize patterns that are harder for the human eye to notice, and insurance claim data can then be analyzed to identify anomalies that may indicate fraud.
You can also read: How To Lower Workers’ Compensation Costs
3. Document and Investigate Everything
Starting with near-miss incidents that don’t result in injury or claims to accidents that do, it’s crucial to document and investigate every single occurrence. When an incident occurs, take photos, interview witnesses, and get as many details as possible about what happened. Fill out a thorough accident report and learn from past mistakes to update your safety protocols.
4. Find Placement for Disabled Employees
Getting an injured employee back to work is another important step in lowering claims. If your organization can offer alternative duties, the employee is obligated to do them if they are able. Finding transitional duties for an injured employee that normally has a more physically-demanding job allows employers to continue having a productive employee and eliminate time lost from work.
5. Get Proper Medical Assessments
One of the ways workers comp fraud is committed is through bogus medical assessments. Working with a reputable medical source to assess injury lowers the possibility of false claims, so make sure to work with a doctor or medical panel that you trust to assess injury claims. Don’t forget to check in with injured employees and monitor their progress.
6. Shop Around for the Best Policies
Talk to several carriers and find the right workers’ compensation insurance policy for your company. Don’t be afraid to ask what rates the company can offer you! It’s a competitive market, which works to your advantage. Shop around every couple of years because insurance companies may change prices every few years and a better deal may be out there.
7. Review the Classifications of Your Employees
Making sure each of your employees is accurately classified can save you money! Someone who works on the floor of a warehouse in a physically demanding job will have a different rate than someone who mainly does a desk job. As people get promoted and assigned different duties, updating their classification is often forgotten. Staying on top of this can also lower your workers’ comp claims.