Creating a solid workers’ compensation plan is necessary for any business. According to the viewpoint of Michael Saltzstein, It’s a legal requirement in most industries or workplaces in the US and adds value to the health of the employees and the company’s success. The other purpose of a good workers’ compensation program is to ensure that employees receive the best coverage for injuries, sicknesses, or accidents while protecting the business against lawsuits. Here’s a guide to building a solid plan that benefits everyone involved.
- Understand the Legal Requirements
The first step for employers in creating a solid Workers’ Compensation scheme is to understand the legal requirements of their respective jurisdiction. Workers’ compensation laws vary from state to state and industry to industry, so determining what exactly is required to provide benefits to employees is essential.
Typically, if any business exceeds a certain number of employees, that business must carry workers’ compensation insurance. Noncompliance may involve fines, penalties, or even legal action against the employer. Make sure to contact an attorney to make certain of compliance with all laws.
- Identify The Business Risks
Every workplace has its unique risk factors depending on the type of business, nature of work, workplace setting, and employee roles. Before establishing a plan for Workers’ Compensation, consider reviewing potential hazards existing in the workplace. For example, construction is usually riskier for accidents than the office.
The better an employer is at understanding workplace risks, the better they can determine the required coverage and the types of safety programs to prevent potential workplace injuries, as per Michael Saltzstein.
- Choose the Right Workers’ Compensation Insurance
Once employers can determine their legal requirements and business risks, it is time to procure a workers’ compensation policy. Insurance can be from private insurance carriers as per the guidelines of the state.
Be sure to shop around and get the best price and coverage; compare the types of coverage being offered by each plan, including medical benefits, lost wages, and rehabilitation costs. It would also be advisable to use the services of a reliable insurance agent to wade through these choices and identify the best insurance policy for their business.
- Simplify The Process
A hallmark of a successful workers’ compensation plan is a clear and straightforward claim process. If an employee is injured, the process should be simple and easy to follow. The protocol should include how injuries should be reported, claim forms submitted, and the status of claims tracked.
Employers should train their management and staff on how to report injuries promptly so that they can be documented correctly. Injuries reported fast lead to fast action on claims so that employees may return to work sooner after recovery while productivity is not severely hindered.
- Promote Workplace Safety
Handling claims alone is not the sole concern of a solid worker’s compensation program; however, it should be focused on taking protective steps to avoid such claims. Encourage a safety culture through periodic risk assessments, occupational safety training programs, and creating a reporting system for employees to point out potential hazards. There could even be incentives for employees to exhibit safe behaviors. The safer the workplace environment, the lesser the number of claims to be dealt with, and hence lower insurance premiums.
In conclusion, employers should regularly review their policies to ensure their plans remain intact and relevant to the business and changing legal requirements. They should make needed modifications to the compensation plan as needed.
