Workers’ compensation insurance is a process that must be done correctly in order for it to benefit the employee without swindling the employer.
Companies that have extraordinary workers’ compensation costs are doing several things incorrectly, but the most common error is not properly managing their programs. Far too many companies sit back and falsely assume that nothing can be done and wait for policymakers to provide solutions. While there are certainly more than enough laws that are almost begging to be changed, most companies are blind to the laws they could be taking advantage of. Here are the most common workers’ compensation insurance errors.
Common Workers’ Compensation Insurance Errors
Failure to Follow Up With an Injured Worker
A common error that many employers practice is to NOT follow up on injured employees after they become temporarily disabled. The employer assumes the worker’s doctor will give the word on when the employee will be ready to come back to work. If employers have made a change to the employee’s job to accommodate their disability until healthy, the doctor should be notified to give a proper window of recovery.
Employers should also check in with their employee to ask how they are doing and send a get-well card; it can make all the difference. Without contact, the employee may lose incentive to return to work and become “psychologically disemployed,” as has happened to some employees after a few weeks or months on leave.
No Understanding of Workers’ Compensation Insurance
Many employers make the mistake of not knowing enough about their workers’ compensation insurance program and the options that are available to them. The lack of understanding makes it quite easy for their employees to take advantage of the system their employers have set in place. Remind your clients to know their workers’ compensation plan like the back of their hand.
Employer Directed Care
Some states allow the employer to choose the doctor who will treat their employees. These are called Employer Directed states and in these states, the employer has the luxury to choose a physician experienced to deal with their industry’s most common injuries. Despite employer directed care, only about 20 percent of employers in these states use this tool.
At PMC Insurance Group, we’re experts on small business insurance in MA and can help you put the proper policies in place. To learn more about getting competitive coverage for your small business clients, contact us today.