Workers’ compensation is a form of business insurance which the government sponsors and makes it mandatory for companies to buy. This policy offers the corporations’ employees monetary payouts when they suffer serious bodily injuries or become disabled while performing their duties. The sum of money they receive covers the costs of their medical treatment, recuperation, rehabilitation, and loss of remunerations. In case one of them, unfortunately, dies from a work-related accident, his/her dependents get compensation in the form of death benefits. This insurance relinquishes the employees’ right to sue their employers in court for workplace negligence.
Michael Saltzstein is a renowned business leader and risk management expert from America with years of valuable experience in the field of diverse areas like loss control, workers’ compensation, occupational safety, alternative risk financing, crisis leadership, and change management. He also has a wealth of practical knowledge in actuarial studies, coverage evaluation, growth strategies, and conducting win-win negotiations. He is also a veteran US swimming official and the mastermind before the implementation of 6-point to eradicate sexual misconduct in the sport.
He says all companies endeavor to create a zero-incident working environment for their businesses. These organizations implement necessary safety measures to create a secure and healthy workplace for their employees. However, some workplace accidents might occasionally occur despite the corporations’ best efforts. In many of these incidents, one or two of their employees might suffer serious injuries in the mishaps. These incidents lower the morale of the employees, which can adversely affect productivity and profitability.
Minimizing workers’ compensation costs with risk management
There is a direct correlation between their workers’ compensation premium and the number of workplace accidents in their businesses for companies. The corporations end up paying higher premiums when the number of work-related accidents within their premises increases. This is a drain on their cash flow which they could use to pay for installing new equipment or offer higher remuneration increments to their employees. Proper employee training on workplace safety procedures is a proactive approach to reducing workplace accidents and monitoring costs
Companies might not be able to eliminate workplace accidents in their businesses. However, corporations need to have a comprehensive risk assessment and management strategy to deal with work-related mishaps within their organizations. It contains elaborate plans on how to initiate safety procedures, preventive maintenance, first aid to the victims, and investigate workplace accidents. The strategy should even include measures to:
- Formulate and implement a viable safety policy,
- Develop proper safety standards which match the corporations’ organizational needs,
- Review, monitor, and update current workplace safety procedures,
- Impart workplace safety training and education to the entire workforce,
- Enforce relevant safety rules, and
- Deal with post-accident procedures.
Michael Saltzstein sums up this by saying executing a risk management strategy to prevent the likelihood of workplace accidents helps companies to save a lot of money. The corporations can avoid cost payouts in the form of workers’ compensation claims to employees who seriously injure themselves in any mishaps. Moreover, the enterprises can maintain the optimal balance between maintaining safety procedures and boosting productivity in the long run.