If one of your employees gets injured on the job, what can you do?
Workers’ Compensation Insurance can protect your employees and your business by covering his or her medical costs and lost wages while they recover during a medically authorized leave.
Let’s take a closer look at the ins and outs of workers’ compensation insurance:
How should an employee report an injury or illness?
When an employee is injured, he/she should notify you immediately. A report is then filed which begins the process for the employee to receive workers’ compensation benefits.
How does employee reimbursement work?
When the employee is on a medically authorized leave from work, they can receive weekly benefits to supplement their lost wages. These benefits are paid at a state-specified percentage rate of their normal weekly wage, up to a maximum amount. There is also a waiting period before benefits are available, specific to each state.
What is an IME?
IME stands for “Independent Medical Exam”, referring to a second opinion exam performed by a physician other than the original medical professional who first diagnosed the employee. Both employers and insurance carriers can request an IME to verify the original diagnosis and treatment plan for the injured employee.
What if an employee doesn’t comply with their treatments?
If an employee doesn’t comply with their recommended treatment plan or therapy, as prescribed by their physician, they may jeopardize their worker’s compensation benefits.
How to control workers’ compensation costs:
There are several ways to control workers’ compensation costs for your business. The most effective method is to encourage employees to maintain a safe workplace. This can drastically reduce insurance costs by preventing accidents. Other ways include:
- Outline a return-to-work policy where employees can perform modified work duties until they are fully recuperated and able to perform their normal duties.
- Familiarize yourself with the different elements of workers’ compensation costs. Things like experience modification, classification codes, and company growth and acquisitions can affect premiums. If you understand how each element can impact your pricing, you can better control your overall cost.
- Train employees to know the safest methods for performing their job duties. After training is complete, require new employees to sign an agreement confirming that they are well-versed in the company’s safety protocols.
- Did you know that for every week a claim goes unreported, the costs can increase as much as 50 percent? Therefore, employees should be encouraged to report claims as promptly as possible to reduce risk to both the employee and the business.
- Investigate all causes or injury or illness at the workplace. One accident may lead to another and steps should be taken to avoid a repeat. Always ask the injured employee how the incident occurred and find out how the situation could be prevented in the future.
For more information on worker’s compensation insurance for your small business, contact ERM Insurance Brokers in Irvine, CA at (949) 222-0444!