For any business owner, managing workers’ compensation claims is essential. While the purpose of workers’ compensation is to protect both employees and employers, frequent claims can create financial strain, disrupt workflows, and damage company culture. The good news is that many common workers’ compensation triggers can be identified and mitigated before they result in costly claims. In this post, we’ll explore the key causes of workers’ compensation claims and provide actionable steps that employers can take to prevent them.
Understanding Workers’ Compensation
Workers’ compensation is an insurance system that provides medical benefits and wage replacement to employees injured on the job. In exchange, employees waive the right to sue their employer for negligence. Most businesses are legally required to carry workers’ compensation insurance, though the specific rules can vary by state, industry, and business size.
While many small business owners believe that workers’ compensation is only relevant to high-risk industries, this is a misconception. In reality, any business with employees is susceptible to workers’ compensation claims. As a business coach or employer, understanding this risk and proactively managing it can save your business from unnecessary financial and operational setbacks.
1. Poor Workplace Safety Practices
Safety should be a top priority in every workplace. If safety is neglected, accidents are inevitable. Common hazards include cluttered walkways, malfunctioning equipment, blocked exits, and failure to provide necessary protective gear. These situations create the perfect conditions for injuries to occur.
How to avoid it:
- Conduct regular safety audits, both scheduled and surprise inspections.
- Develop clear, easy-to-understand safety protocols and ensure all employees are trained.
- Encourage employees to report hazards and create a reward system for proactive safety actions.
2. Inadequate Training and Onboarding
A significant number of workplace injuries occur among new employees. When workers are not adequately trained or thrown into tasks without proper onboarding, they are more likely to make mistakes that lead to accidents. Often, these workers are unaware of safe practices or fail to recognize potential hazards.
How to avoid it:
- Ensure thorough onboarding that includes training on equipment usage, workplace environment, and safety expectations.
- Use varied teaching methods, such as live demonstrations, videos, and hands-on practice, to accommodate different learning styles.
- Offer refresher courses and regular team discussions to reinforce key safety practices.
3. Repetitive Motion Injuries
Repetitive motion injuries, such as carpal tunnel syndrome or tendonitis, are common workplace claims, especially for office workers or those involved in repetitive physical tasks. These injuries develop slowly and often go unnoticed until they become severe.
How to avoid it:
- Provide ergonomic workstations and equipment to reduce strain on employees.
- Encourage short breaks to stretch and change posture regularly.
- Rotate tasks to ensure employees don’t perform the same repetitive motion all day long.
4. Slips, Trips, and Falls
Slips, trips, and falls are among the leading causes of workers’ compensation claims. These accidents often occur due to minor hazards, like wet floors, power cords in walkways, or uneven flooring. While these incidents are easy to prevent, they continue to be a major risk in many workplaces.
How to avoid it:
- Keep floors clean and clear of obstacles. Assign specific individuals to check walkways and common areas regularly.
- Use clear signage to warn of wet floors or temporary hazards.
- Install slip-resistant flooring in high-risk areas, such as kitchens, warehouses, and loading docks.
5. Overexertion and Heavy Lifting
Physical overexertion and improper lifting techniques are common causes of injuries, particularly in jobs that involve manual labor or lifting heavy objects. These injuries can lead to muscle strains, back injuries, or long-term physical damage.
How to avoid it:
- Provide the necessary tools and equipment to assist with lifting, such as dollies or hoists.
- Train employees on proper lifting techniques and ensure they understand the importance of teamwork when handling heavy loads.
- Set limits on the weight that any single employee can lift and encourage team-based lifting for heavier items.
6. Workplace Violence or Harassment
Workplace violence, including both physical altercations and emotional distress caused by bullying or harassment, can have serious consequences for employees’ mental and physical health. Employees who feel unsafe or emotionally exhausted are more likely to take time off or file a workers’ compensation claim.
How to avoid it:
- Implement and enforce a zero-tolerance policy for workplace violence and harassment.
- Provide training on conflict resolution, emotional intelligence, and bystander intervention.
- Make it easy for employees to report incidents confidentially and ensure a fair process for handling complaints.
7. Delayed Injury Reporting
Some employees may hesitate to report injuries right away, either because they believe the injury is minor or fear retaliation. Delayed reporting can lead to more severe health issues, increased treatment costs, and difficulty investigating the cause of the injury.
How to avoid it:
- Foster a transparent culture where reporting injuries is encouraged and rewarded.
- Simplify the injury reporting process by offering online forms or a dedicated hotline.
- Train supervisors to check in with their teams regularly and promote early reporting, even for small injuries.
8. Fraudulent Claims
While fraudulent workers’ compensation claims are rare, they do happen. Employees may exaggerate the severity of their injuries or even fabricate an injury to receive benefits. These claims can be costly for employers and undermine trust in the system.
How to avoid it:
- Document all incidents thoroughly, including witness statements and photographs if possible.
- Monitor for inconsistencies in injury reports and investigate any red flags.
- Work closely with insurance providers and consider using surveillance if fraud is suspected.
Conclusion
Managing workers’ compensation risk doesn’t have to be a daunting task. By identifying common risk factors such as poor safety practices, inadequate training, repetitive motion injuries, and workplace violence, employers can take proactive steps to prevent them. With the right approach, businesses can reduce the likelihood of workers’ compensation claims, lower insurance premiums, and foster a safer, more productive work environment. Taking the time to address these issues today can save your business from costly and disruptive claims in the future.
