As a business owner, you must follow the laws in your region, which usually means purchasing workers’ compensation insurance. After all, most injured staff members in New York have a legal right to medical care and wage replacement at the very least.
Like a responsible employer, you know how workers’ comp claims work, but do you understand how they may impact your business? Unfortunately, many business owners fail to account for the possible effects of workers’ compensation claims.
5 things that may happen after an injury claim
Workers’ compensation insurance premiums may increase after a worker files a claim. Additionally, you must report injuries that lead to death, severe harm, missed work and medical care to the Occupational Safety and Health Administration (OSHA). These reports may also affect your insurance premiums.
Other possible financial effects of employee claims:
- Cost of work stoppage. A workplace accident can lead to a work stoppage, possibly resulting in lost productivity and revenue.
- Overtime expenses. Other employees may need to work extra to cover the injured employee’s shifts, increasing your overtime costs.
- Training expenses. If an injured employee cannot return to work, you may need to train a new worker to fill their position.
- Loss of productivity. Those who can return to work may do so at limited capacity, possibly compromising overall productivity.
- OSHA fines. OSHA may fine employers for workplace accidents that violate safety regulations, increasing your costs further.
As you can see, work-related injuries can significantly affect your bottom line. To best protect your business funds, it is vital to ensure all claims are legal and valid and to defend against fraudulent claims. Legal guidance can help you meet your goals and keep your money where it belongs — working on behalf of your company.
