Workers’ Compensation Claims Severity on the Rise: 3 Focus Areas Can Help Reduce WC Claims

Farmington Hills, MI (WorkersCompensation.com) - The severity of Workers’ Compensation claims is rising in the insurance industry. At the National Council on Compensation Insurance (NCCI) Annual Issues Symposium held earlier this year, NCCI showed data confirming an industry-wide trend in increasing claim severity. The aging workforce, medical inflation from expensive technology, and rising wages leading to higher indemnity costs are some of the reasons claims severity is increasing, according to Business Insurance.

One common misstep companies can make during a Workers’ Compensation insurance claim is to cut off communication with the involved parties. Communication is a vital method to keeping down costs related to this aspect of insurance, and injured workers want to be kept in the loop with the process.

Additionally, proactive strategies at your workplace can help reduce the likelihood of Workers’ Compensation claims. Consider these key methods to reduce Workers’ Compensation claims:

• Encourage Employees to Take Breaks: Many issues can lead to an increase in workplace injuries, illnesses or accidents. These aren’t always directly related to hazards on the job, and employers should strive to create an environment that promotes healthy behavior. Encourage employees to take breaks, go for walks or perform a variety of tasks throughout the day.
• Rethink Your Workspace: According to California's Commission on Health and Safety and Workers' Compensation, poorly designed workspaces can be detrimental to a person's health. Working in the same area for a prolonged period can lead to damage in the hands, arms, neck, back, feet or legs. Measures should be taken to prevent workers from unsafely repeating the same motions throughout the day.
• Reduce Worker Stress: Chronic stress can be caused by work overload or pressure, an accelerated work pace, harassment, and job insecurity, among other factors. This stress can cause health conditions such as high blood pressure, heart disease and emotional distress. Employees who are stressed can make mistakes or ignore safety protocols. This could lead to an increase in serious accidents and, ultimately, more Workers’ Compensation insurance costs.

Businesses should remain proactive when considering ways to reduce Workers’ Compensation claims. Any lapse in these areas could have negative effects throughout the company and to your bottom line.

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