If you are like most business owners, controlling your overall operating costs is something that’s always on your mind. Some of the most significant costs you deal with are those associated with employees being injured on the job.
Are the injuries really job-related? Sometimes that’s not so easy to determine. There is one change you can make, though, that could reduce your Workers Compensation injury claims, and their related costs, by upwards of 50%.
Obviously, one of the best ways to cut Workers Compensation costs is to reduce the overall number and severity of claims. When you have fewer Workers Compensation claims, you qualify for a better experience mod and for lower rates, plus there are a wider range of carriers who are willing to write your coverage. You can proactively institute safety measures to reduce claims, but that may not be enough. More and more businesses today are taking the extra step to add Voluntary Accident and Voluntary Disability coverages to their benefits packages as a way to reduce claims.
According to a recent study of over 600 employers of various sizes and industries by Lieberman Research Worldwide, 42% of all companies providing employees access to Voluntary Accident and Voluntary Disability insurance experienced declines in their Workers Compensation claims—some of them by as much as 50%! It makes sense, because when workers have access to these supplemental coverages, they are less likely to try to claim that an injury they suffered over the weekend actually occurred on the job. They file the claim under their Voluntary Accident or Voluntary Disability coverage instead.
A voluntary benefits program is easy to implement, and there’s little or no underwriting involved. Premiums are handled through payroll deduction, so there’s no additional cost to you. Employees can elect the amount and types of coverage they want, creating their own financial safety net for unexpected medical expenses. By making Voluntary Accident or Disability insurance available to your workers, you may be able to decrease not only the frequency and expense of Workers Compensation claims, but also absenteeism. The program can also improve employee satisfaction and loyalty, allow you to differentiate your business from other employers to attract new talent, and allow you to retain the talented employees that you already have.
Why not explore how adding Voluntary Products to your employee benefits package this year can help keep your Workers Compensation costs in line? Talk to your professional insurance agent today to find out more on how these programs can work for you and for your employees.