5 Workers’ Compensation Mistakes to Avoid

Posted on 15 March, 2023

Business owners must know the workers’ compensation mistakes to avoid when managing their workers’ comp claims. Managing workers’ compensation claims can seem simple for many business owners. This lack of experience and understanding can lead to costly mistakes. Sometimes even the simplest mistakes in a workers’ comp claim can lead to expensive consequences for your business.

The Workers’ Compensation Mistakes Owners Must Evade

Here are five mistakes you should be mindful to avoid.

Terminating Employees After a Workers’ Compensation Claim

When faced with a job site accident, you may feel overwhelmed with the aftermath, worried about the production, and concerned that the employee behaved negligently. It may lead you to terminate the employee when they file their claim. In most situations, termination qualifies as retaliation and is illegal. Your company could face litigation and costly settlements or fines.

Not Showing Empathy for the Employee

If an employee suffers an injury on the job, your initial reaction might be all business, seeking to protect the company and ensure everyone follows the proper policies and procedures. However, if you fail to account for the human element and do not express any empathy for your injured employee, they might feel undervalued. It may increase the risk of litigation if an employee feels slighted and gets the impression that the business is more important than their recovery.

Not Maintaining Proper Workers’ Compensation Coverage

When you hire new employees, your workers’ compensation coverage also requires updates. Add every employee to your policy immediately to ensure adequate coverage for everyone. Remember that new employees are just as likely to suffer injuries on the job as long-time workers.

Failing to Mandate Drug Testing

One of the significant workers comp mistakes to avoid is overlooking the importance of post-accident drug testing. When drug use is a factor in workplace injury, the company’s liability may be lower or negated. Every workers’ comp claim should include mandated drug testing in accordance with state laws as soon as the employee is able. Remember that some substances may only show up on testing if you delay the process for a short time, so testing promptly is essential.

Neglecting Return-to-Work Accommodations

A return-to-work plan with accommodations for light duty or a transitional role may help employees get back on the job faster than if they require a full recovery first. The sooner your employee returns to work, the less money your workers’ compensation claims history will reflect because employees who return to work will no longer need those benefits. Keeping your claim payments down helps moderate your future premium payments.

Protecting Your Workers’ Compensation Procedures

Every business needs clear procedures in place for managing workers’ comp claims. Consider these common mistakes and institute policies and procedures that help your company avoid those pitfalls. With proper policies in place, your employees will understand what you expect of them, your company can handle claims appropriately, and you might reduce your claims liability and policy premiums. Protecting your employees and your business should be a priority; workers’ compensation coverage plays a crucial role in that process.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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