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Workers Compensation: Why It Is Crucial For Business

Workers Compensation and businesses go hand in hand. Thinking about going without proper coverage can lead to serious lawsuits and substantial medical expenses to pay for an employee’s on-the-job injury or illness. Whether you obtain coverage through a commercial market, a state fund, or choose to self-insure, Workers Compensation is not only a vital component of conducting business, it is also a requirement in most states.

It must be provided to employees of any company with five or more workers, as it’s the sole remedy for injured employees.

Although the incidence rate of workplace injuries and illnesses were down for 2010 as compared to 2009, according to stats released in the Occupational Injuries and Illnesses (Annual) Report from the Bureau of Labor Statistics, the number is still quite significant: 3.1 million non-fatal on-the-job injuries and illnesses were reported by the private sector.

What can you do as a business to stem Workers Compensation claims in your operation? First be sure your safety program is updated and that all employees are vigilant about following it. Second, work with your insurance agency and company to implement an effective Return-to-Work (RTW) program so that if an employee is injured while on the job, there is a concerted effort to get him or her back to work as soon as possible, even in a part-time position. The key to a successful RTW program is early intervention.

Return to Work Programs can reduce business costs by eliminating the need for overtime by other employees or in having to hire temporary workers. They can also help reduce Workers Compensation costs in terms of increased premiums. What’s more, RTW programs can help reduce employee turnover as you mitigate the need to replace the employee. The cost to replace an employee can be up to 1.5 times his or her annual salary. What’s more, it takes a new employee more than 13 months to become efficient at his or her job. And, RTW programs can serve to boost morale. You get the injured worker back on the job and he or she in addition to your other employees will know that you see them as a valuable resource.

Workers Compensation can save you from costly lawsuits in case of on-the-job accidents and injuries. Equally important, it helps keep your employees healthy and, if injured, helps ensure that they get the medical treatment they require.

At Dryfoos, we can help you set up a Workers Compensation plan that meets your needs in Pennsylvania, in addition to discussing your safety plan and a Return to Work program. Please contact us today at 1-800-253-6728. Dryfoos serves throughout PA.

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