When it comes to creating a safe and productive workplace, ensuring the well-being of your employees is a top priority. Despite efforts to mitigate risks, workplace injuries still occur, resulting in harm to employees and inflicting significant financial burdens. The average settlement for a workers’ compensation claim is around $20,000, but this cost can vary based on the complexity of the injury. Shouldering a substantial portion of injury-related costs, employers bear the responsibility of providing workers' compensation to employees injured on the job.
Since most incidents are preventable, investing in enhanced occupational health can minimize the occurrence of workplace injuries and reduce associated costs. By implementing safety protocols and providing hazard identification and prevention training, you can control risks and establish a safer work environment.
As a small business owner, you hold the power to prevent injuries in your workplace and cut down on worker’s compensation costs. Improving occupational health not only protects your employees from harm but also aids in securing your business’s financial stability.
What Is Occupational Health?
Occupational health focuses on keeping workers safe and healthy while on the job. It refers to the care for workers’ overall well-being, including their physical, mental, and social health, across all professions. This requires attention to a wide range of tasks related to health and safety, including detecting and addressing workplace hazards, as well as providing health education and training. Occupational health isn’t just about avoiding injuries at work; it’s also about supporting employees’ overall health and wellness. It’s crucial for you to take proactive safety measures and provide your workers with resources to care for their health.
Understanding Workers’ Compensation
Workers’ compensation aims to protect your employees and your business. Paid for by employers, workers’ compensation is a type of insurance that provides benefits for workers who are injured or become ill from their jobs. An employee must report their injury or illness to their employer and submit a claim to receive workers’ compensation benefits. These benefits typically cover medical expenses, replacement wages if employees can't work due to injury, rehabilitation services, and compensation for permanent disabilities.
Most states mandate employers provide workers’ compensation insurance; however, laws vary by state. Small businesses have the option to become self-insured or obtain workers’ compensation insurance through a third-party provider. If you live in a monopolistic state, you are required to purchase workers compensation insurance from a state fund. Although you can still choose to be self-insured, monopolistic states restrict employers from seeking third-party insurance options. As you consider your coverage options, you need to know your state’s specific requirements to support the well-being of your workers and assure compliance.
How Occupational Health And Workers' Compensation Are Related
The relationship between occupational health and workers’ compensation is quite simple. While most incidents are preventable, overlooking occupational health can lead to more injuries on the job and an increase in employee claims. The frequency of claims filed directly impacts your cost for workers’ compensation.
Properly paying attention to occupational health and workplace safety can prevent incidents and, therefore, lower your workers’ compensation rates in the long run. The following components you should consider to improve your business’s occupational health strategy:
Early intervention and prevention
When it comes to health and safety, it’s always best to be proactive. Catching hazards early on can prevent incidents from occurring, reducing the number of claims filed. By frequently conducting risk assessments, you can help mitigate workplace hazards and safeguard your workforce. In addition, it’s essential to track patterns in the injuries that occur to identify and address areas that need improvement. Remaining vigilant and noting trends prompts early intervention to prevent incidents before they happen.
Injury and illness management
If an incident occurs, it should be reported and documented immediately to ensure the injured or ill employee receives prompt care. Effective treatment and rehabilitation programs can help employees recover quicker and return to work sooner, resulting in lower workers’ compensation costs. When employees return to work, support them by providing accommodations, such as adjusting schedules or assigning lighter duties, as needed to encourage a smooth transition. Return-to-work programs can also assist in reintegration, backing employees as they recover and return to their roles at work.
Long-term health and wellness
To promote employee health, small business owners should consider how they can support comfort and wellness and their workplace. Disregarding the ergonomic element of workstations and equipment can negatively affect employees’ long-term health, potentially leading to more claims. You can treat this by ensuring employees are comfortable and aren’t experiencing excessive strain while doing their jobs. In addition, health and wellness programs, such as mental health support, biometric screenings, disease management, and more, can make a difference. These initiatives can encourage employees to prioritize their well-being and develop healthier lifestyles, minimizing the likelihood of injury or illness.
The Benefits Of Integrating Occupational Health In Workers’ Compensation Management
Making occupational health a part of your workers’ compensation management strategy benefits your workforce and your business. Investing in proper health and safety initiatives for your employees boosts morale, saves money, and gives your business a positive reputation. Your commitment to improving occupational health shows your employees you care, instilling confidence and promoting productivity. It also helps prevent workplace injuries and illness, keeping your employees safe and reducing workers’ compensation claims. In today’s competitive market, having a strong focus on occupational health sets your business apart and attracts top talent. Your workers’ compensation rates benefit from creating a workplace where employees feel safe and confident performing their jobs.
Workplace Safety And Workers’ Compensation Management With GMS
Maintaining all aspects of occupational health can be challenging for a small business owner. If you need help managing your workplace safety strategy, partner with a professional employer organization (PEO) like GMS. We have safety experts who can provide advice and help you identify potential risks in your workplace. We also offer comprehensive training courses that educate you on ways to prevent injuries and support a culture of safety.
In addition to providing workplace safety services, GMS can help you save money on workers’ compensation insurance. We partner with businesses to manage workers’ compensation insurance rates and protect them from costly claims. Overseeing the claims management process, GMS helps with reporting, investigations, claims certifications, and more. Our strategies for cost containment and loss prevention can also assist in managing workers’ compensation rates.
GMS is committed to supporting you in prioritizing your employees’ well-being and providing appropriate coverage. Contact us today to learn how to navigate workers’ compensation insurance options and find the best solution for your business!