Workers’ Compensation 101 for Your Small Business

June 3rd, 2013 by admin

What are the Reporting Procedures for Injuries and Illnesses?

If employees are injured, they should notify you immediately to file a report. This will initiate the process for receiving workers’ compensation benefits. If time is of the essence, send the employee to the emergency room immediately and the hospital will collect the insurance information later.

How are Employees Reimbursed?

Lost compensation is payable during the time period in which employees are authorized to be out of work by their treating physician. Generally, benefits are paid weekly by the insurance carrier at a state-specific percentage of their average weekly wage, up to a maximum dollar amount. There is also a state-specified waiting period before benefits are available.  Medical claims are generally paid directly to the physician or hospital.

What is an Independent Medical Exam (IME)?

An IME is an exam by a medical professional (other than the physician who first examined an injured or ill employee). As the employer (and insurance carriers), you can request an IME to confirm an original diagnosis and treatment plan.

What Happens if Employees do not Comply with Treatments?

Non-compliance with recommended medical treatments, therapy or return-to-work plans may jeopardize workers’ compensation benefits.

Controlling Workers’ Compensation Costs

There are many ways for you to control workers’ compensation costs for your small business. The most important is to convince your employees that maintaining a safe workplace is vital.  Since the cost of workers’ compensation insurance is in part based on your claims history, reducing claims will consequently reduce your insurance costs. Here are some other ways to control costs:

  • Implement a return-to-work policy in which employees work modified duty until they are fully healthy to do their jobs.
  • Understand the elements that contribute to your workers’ compensation costs. Your classification codes, experience modification, company growth and company acquisitions can all affect your premiums. It is vital that you understand the impact that each brings to your overall pricing.
  • Orient and train your employees on safe practices necessary for their job functions and tasks. Once training is complete, ask new employees to sign an agreement confirming that they understand company safety procedures.
  • Insist that employee claims are reported promptly, as statistics reveal that for every week that a claim goes unreported, the cost can increase as much as 50 percent.
  • Investigate the cause of injuries and illnesses. While one injury may be behind you, others will take its place unless you do something to reduce the change of the incident occurring again. Also ask the injured employee how the situation could have been prevented.

Contact Nexus Partners Insurance Solutions at (480) 422-1536 to learn more about how this coverage can help you protect your home-based business as well.

A Nexus Partners Insurance representative can provide you with complete details on workers’ compensation insurance and recommend cost-effective ways to control expenses through safety engineering and claim services.