Successful companies aren’t just companies that make a lot of money.
Successful companies are those with a glowing outside and a healthy inside.
They are businesses that take care of their employees just as much as their customers.
Recently, there’s been a big push for cheap or cut-rate workers’ compensation insurance. And, when considered as part of your safety program, workers’ comp is an investment in your business’ most important asset – your employees.
Here are three reasons why a good workers’ comp policy is everything:
✔️It’s required in most states
✔️It helps injured workers get what they need
✔️And, it protects your business
But what matters most is choosing an insurance broker that helps you through the policy selection process and helps you choose a policy for your business that is the best it can be.
At GDI, we know how hard it can be sometimes when choosing. Workers’ comp requirements change by state, and policies vary by company.
So, we let you lead us. We’ll help you compare policies, prices, and allow you to choose the right one for you. And we help you save money too.
Our programs allow you to insure your own employees and give them the peace of mind that you have prepared for anything.
It shows not that you’re thinking about yourself, but that you care about them. You see them as the lifeblood of your business, because they are.
Direct and Indirect Workers’ Compensation Costs Explained
Workers’ compensation claims have a variety of different costs associated with them. Some of these costs are expected costs, while others are unexpected. Direct and indirect workers’ compensation costs explained, here’s the difference between these terms:
Expected costs are those that are covered by workers’ compensation insurance. Such expenses are commonly referred to as direct costs.
Unexpected costs are those that workers’ compensation insurance does not cover. These expenses are commonly referred to as indirect costs.
According to the Occupational Safety and Health Administration (OSHA), both direct and indirect costs can have a substantial impact on employers and their bottom lines. As such, it’s important for employers to understand the difference between direct and indirect costs, how to reduce these costs and why it’s important to do so.
Direct vs. Indirect Costs
Direct and indirect costs are determined by which expenses workers’ compensation insurance will or will not cover. To reiterate,direct costs are those that are covered by such insurance, which can include:
Employee wage benefits—These benefits include temporary total, temporary partial, permanent partial and permanent total disability. Employers have to pay these benefits when an employee is unable to work or return to work in full capacity.
Medical payments—These payments refer to any medical costs needed to treat an employee’s injury.
Vocational rehabilitation costs—These expenses are any costs associated with an employee’s rehabilitation (e.g., training and career counseling).
Death/dependency benefits—These benefits are for the spouse or dependents of an employee who was killed by a work-related injury. Such benefits vary by state.
Legal fees—These fees include those associated with a workers’ compensation claim, any civil liability expenses and settlement costs.
Indirect costs for a workers’ compensation claim are those not covered by such insurance. These costs can vary depending on the extent of an employee’s injury. Some indirect costs include:Wage and hour costs—These additional costs are incurred by employees who must work extra hours to compensate for another employee’s time away from work. This includes hiring temporary workers or having employees work overtime to fill in for the missing worker.
HR support expenses—This includes the increased work and time incurred by individuals who handle workers’ compensation claims and related paperwork.
Claim investigation costs—This includes costs associated with the investigation of a workers’ compensation claim if there is a concern of fraud.
Hazard mitigation costs—This includes costs associated with mitigating the hazard(s) that caused an employee’s injury.
Production deadline extensions—An injured employee’s absence can cause delays in production, thus increasing production costs and negatively affecting business contracts.
Training expenses—This refers to the costs of training other employees to fill in for an injured employee if they are unable to return to work in their original capacity. This can be a temporary or permanent arrangement. If it’s permanent, the company may have to cover the costs of hiring a new employee.
OSHA fines—If an employee is injured or killed at work, an inspection will be triggered and the employer may be subject to OSHA citations for any safety issues found during the inspection. Also, the more employee injuries and fatalities an employer experiences, the higher their business’s incident rate will be—thus triggering more OSHA inspections.
Insurance premium expenses—The more injury-related costs an employer experiences, the higher their experience modification factor will be. As a result, their business may be considered high risk and could receive increased premium rates.
Repair costs—Repair expenses associated with property or equipment can also be considered indirect costs, depending on whether or not the property or equipment was involved in an injury-causing incident.
Workplace culture concerns—A company with a high rate of injury may encounter poor employee morale, particularly because employees may begin to think that their employer does not care about their well-being. Typically, the lower morale is within a company, the higher incident rates will be.
Reputational struggles—A company with a high rate of workers’ compensation claims can garner a bad reputation. With a poor reputation, business contracts and qualified workers may be difficult to secure. A bad reputation can negatively impact an employer’s bottom line and even lead to their business closing down altogether.
Controlling these direct and indirect costs can be beneficial for employers. That’s why it’s crucial to be proactive.
Reducing Direct and Indirect Costs
It’s important for employers to understand that investing in their safety programs can positively affect the outcome of direct and indirect costs. For instance, managing safety programs at a business and having employees actively engage in hazard identification can reduce the likelihood of injuries. By reducing injuries, direct costs related to expenses such as wage benefits and medical payments will also decrease. This will, in turn, lower indirect costs as well. Having a successful safety program is the foundation of reducing workers’ compensation claims. If an employer cannot eliminate workers’ compensation claims, another way to reduce direct and indirect claims is to proactively manage claims. This can involve working with employees to get them back to work quicker after an injury and following up with claims handlers. Furthermore, participating in the claims process can improve communication between an employer and their employees, as well as the employer and their insurance company.
Having an effective return-to-work program can also help with reducing direct and indirect costs. Having other work options for employees that fit within their medical restrictions encourages employees to return to work quicker, thereby reducing a significant amount of direct and indirect costs.
The Importance of Reducing Direct and Indirect Workers’ Compensation Costs
Minimizing direct and indirect workers’ compensation costs is critical. By reducing injuries, a company can continue to function normally, avoid interruptions and prevent issues with production or business contracts.
According to the National Safety Council (NSC), work-related injury costs for employers in 2019 totaled $171 billion. This total can be broken down as follows:
$52.9 billion in wage and productivity losses
$35.5 billion in medical expenses
$59.7 billion in administrative expenses
Employers’ uninsured costs ($13.9 billion), property or equipment damage ($5 billion) and fire-related losses ($3.7 billion) also contributed to this total.
In breaking these costs down, the NSC found that such expenses came out to $1,100 per employee. Further, the average cost per fatality was $1.2 million, while the average cost of an injured employee’s medical treatment was $42,000.
Overall, by reducing employee injuries, employers can help create a positive work culture and lower workers’ compensation expenses— thus minimizing both direct and indirect costs.
Contact GDI Insurance Agency, Inc. to discuss your workers’ compensation needs.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
California Employers received some potentially GOOD news from a California Federal Judge with respects to Liability arising out of a COVID-19 workers comp claim.
During the last week of February 2021; a California Federal Judge dismissed a claim made by a spouse of an employee who allegedly contracted COVID-19 while on the job. The plaintiff alleged that she contracted COVID-19 from her husband who had contracted the virus while at work.
The dismissal was given with leave to amend the claim, so the Plaintiff may elect to revise and refile their claim; but as of now this is a positive indication as to how California courts may elect to view and decide on future claims.
A summary of the complaint and the situation may be found from The National Law Review at the following link:
Workers’ compensation is a no-fault system that provides medical expenses and lost-income replacement for employees who sustain injuries or illnesses that arise out of and in the course and scope of their employment.
Each state has its own workers’ compensation law that governs the process of determining whether an injury or illness is work related and therefore compensable. Under California’s workers’ compensation law, employees typically have the burden of proving that any claimed condition is work related.
On May 6, 2020, however, California’s governor issued Executive Order N-62-20 to reverse that burden for employees who were diagnosed with or tested positive for COVID-19 within 14 days after working at their places of employment between (and including) March 19 and July 5, 2020. On Sept. 17, 2020, the state enacted SB1159 to add the provisions of that order to the state’ workers’ compensation law and to extend the presumption that COVID-19 is work related to certain employees through Jan. 1, 2023.
New Presumptions Under SB1159
SB1159 creates a new presumption that COVID-19 is compensable for the following types of workers, if they test positive for COVID-19 within 14 days after working at a place of employment (not including their own homes), at an employers’ direction, on or after July 6, 2020:
Active firefighting members (including volunteers) of various, local, state and federal fire departments;
Peace officers who primarily engage in active law enforcement activities;
Fire and rescue services coordinators who work for the Office of Emergency Services;
Health facility workers who provide direct patient care to or come into contact with COVID-19 patients;
Certain registered nurses, emergency medical technicians and emergency medical technician-paramedics;
Workers who provide direct patient care for a home health agency; and
Workers who provide in-home supportive services outside their own homes.
In addition, SB1159 extends the presumption to any employee who tests positive for COVID-19 within 14 days after working at a place of employment, at an employers’ direction, on or after July 6, 2020, if:
The employer has five or more employees; and
The employee tests positive during an outbreak at the employee’s specific place of employment.
For this purpose, an “outbreak” exists when:
Four employees at a specific workplace test positive for COVID-19 within a 14-day period, if the employer has 100 employees or fewer at that workplace;
Four percent of the employees who reported to a specific workplace test positive for COVID-19 within a 14-day period, if the employer has more than 100 employees at that workplace; or
A specific workplace is ordered to close by a local or state public health authority due to COVID-19-related risk.
A specific workplace means the building, facility, store, field or other location where an employee performs work at the employer’s direction. It does not include an employee’s home, unless the employee provides home health care services to another individual there.
Disputing COVID-19 Workers Comp Claims
When an employee is presumed to have a compensable claim for COVID-19, the employer may present evidence to rebut the presumption. Types of evidence that may help prove that an employee did not contract COVID-19 on the job include, for example, any measures the employer has in place to reduce potential transmission in the employee’s workplace and any nonoccupational risks of COVID-19 infection the employee may have.
An employer that wishes to dispute an employee’s presumptively compensable claim for COVID-19 must formally reject liability within either 30 days (for claims that do not depend on the existence of an outbreak for the presumption) or 45 days (for claims associated with an outbreak). Otherwise, the employer will be barred from using any already-discovered evidence to dispute the claim.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Not only is workers’ compensation coverage required in most states, but it also plays a major role in connecting injured employees to the care they need to return to work as quickly and safely as possible. That’s why it’s crucial for your organization to develop an effective workers’ compensation program. The following Workers’ Compensation Trends can guide the development of your worker’s comp program. Of course, GDI Insurance is here to help!
To ensure a successful program, it’s important to stay up to date on the latest workers’ compensation trends. In doing so, your organization will have the information needed to respond appropriately and make any necessary workers’ compensation program adjustments.
Don’t let your organization fall behind in this evolving risk landscape. Review the following guidance to learn more about workers’ compensation trends to watch in 2021.
The Effects of COVID-19 and Workers’ Compensation Trends
As the coronavirus pandemic continues, many employers have had to make a wide range of organizational adjustments—such as going remote, changing employees’ roles, implementing lay-offs or furloughs, or temporarily halting operations.
These adjustments, depending on which state you are in, could be subject to various workers’ compensation-related reporting changes, as well as potentially impact your organization’s premium costs and experience modification factor. This is because your workplace risks and safety exposures have likely changed due to such adjustments. Be sure to consult legal counsel for additional, state-specific guidance on the impact of such adjustments.
Your organization should also prepare for workers’ compensation claims related to COVID-19 exposure. Generally, in terms of COVID-19, claims are evaluated on a case-by-case basis, and coverage may be triggered if both of the following are true:
The illness in question arises out of the course and scope of employment.
The illness in question arises out of or is caused by job-specific conditions and not an ordinary disease of life (e.g., the common cold) to which the general public is exposed.
Keep in mind that every claim is different. When it comes to compensability, you’ll need to evaluate what jobs or tasks an employee was performing when they were exposed to COVID-19. Additionally, states are going to have different thresholds for COVID-19 compensability. Some states may have more general language regarding workplace illnesses, and communicable and contagious diseases in their statutes, while others have issued specific guidance on COVID-19 claims.
Specifically, a number of states have enacted legislation and issued executive orders that expand workers’ compensation coverage for certain employees (e.g., health care workers and first responders). In particular, some states have created new rules regarding COVID-19 presumptions. A presumption describes the conditions in which an employee’s injury or illness is presumed to have happened on the job and should be compensated. Be sure to track your specific state’s developments regarding the interaction between COVID-19 cases and workers’ compensation claims.
In any case, it’s important for your organization to implement workplace health and safety measures to help protect your staff from COVID-19 exposure and limit the likelihood of related claims. Further, review guidance from your state workers’ compensation board and speak with an insurance professional to learn more about how your coverage may or may not respond to COVID-19 claims.
The Adoption of Telemedicine
The coronavirus pandemic has certainly contributed to an acceleration in the adoption of telemedicine within the workers’ compensation realm. However, workplace health and safety experts anticipate that telemedicine will remain a key offering even after the pandemic subsides.
Telemedicine allows employees to receive medical services virtually after they’ve been injured on the job. Examples of telemedicine in action may include video consultations with care providers following an injury (allowing for a virtual evaluation and diagnosis) and text message alerts that remind the recovering employee of treatment steps or upcoming appointments.
Telemedicine can be useful in situations where medical care isn’t easily accessible to staff, such as:
When an injury occurs during an overnight shift and most treatment facilities have closed
If your workplace is located in an area where there are limited care facilities nearby
If your organization frequently conducts work off-site—making care availability unpredictable
Telemedicine is also an increasingly viable option to help staff avoid the risks of in-person visits or having to navigate adjusted clinic schedules during the coronavirus pandemic.
In addition to providing employees with easy access to medical care following an injury, utilizing telemedicine can offer a variety of key benefits to your workers’ compensation program. This includes transportation and time savings by limiting physical trips to the doctor, simplified access to medical specialists and improved recovery capabilities for injured employees—minimizing treatment delays.
Further, the combination of these benefits can, in turn, help reduce your organization’s overall workers’ compensation claim costs—limiting the need for in-person treatment while still ensuring quality care and a speedy recovery.
However, keep in mind that telemedicine is not a universal care solution for all workplace injuries. This offering only applies to non-urgent situations. In-person treatment will always be necessary in the event of an emergency. Even in non-urgent situations, telemedicine may still need to be combined with in-person treatment.
The Impact of Mega Claims
Another trend that has become a costly issue in the realm of workers’ compensation is the surge in mega claims. These are exceptionally large claims—totaling $3 million or more in incurred losses.
In regard to workers’ compensation, these claims typically stem from employees experiencing severe (and possibly permanent) injuries on the job. While the causes of these injuries vary, mega claims are usually attributed to falls, motor vehicle accidents and struck-by incidents. In some cases, however, mega claims can develop slowly—particularly when caused by minor injuries that go untreated.
Mega claims are not only expensive, but often lengthier and more complex in nature. Such claims can leave lasting impacts on your organization by way of hefty costs, lost time and the potential for severe reputational damage.
What’s more, mega claims have become a rising concern in the past decade. In fact, according to a recent study conducted by the National Council on Compensation Insurance (NCCI), these claims have reached a 12-year high—increasing in both frequency and severity. This increase has been attributed to several possible factors, such as changes in mortality patterns, medical advances and a rise in health care costs.
Despite their devastating impact, mega claims may be preventable in some instances. To combat such claims, it’s critical to ramp up your safety efforts—particularly when it comes to preventing falls, motor vehicle accidents and struck-by incidents.
The Rise in Comorbidities
The rising concern of comorbidities has also become a recent workers’ compensation trend. Put simply, a comorbidity is the simultaneous presence of two or more medical diagnoses for an individual.
Comorbid conditions are typically long-term health complications that have the potential to increase the severity of other injuries or illnesses that the affected individual may experience, making it more difficult to fully recover. Common comorbid conditions include obesity, diabetes, hypertension, depression, anxiety and substance abuse.
According to a study conducted by the NCCI, workers’ compensation claims involving comorbidities have nearly tripled since 2000. Further, the average cost of workers’ compensation claims connected to a comorbid condition is almost twice as much as that of comparable claims that don’t involve comorbidities.
This increase in workers’ compensation costs is likely tied to the often complex, long-term nature of claims that involve comorbidities. After all, individuals who have comorbid conditions typically take longer to heal from an injury, are more prone to develop additional complications due to an injury and are even at an increased risk of being left permanently disabled by an injury.
To combat the potential impact of comorbidities, many employers have found success by implementing wellness initiatives. In other words, if your organization takes the time to address chronic health conditions and improve the overall well-being of your staff, you could reduce the severity of workers’ compensation claims and maintain low comorbidity rates overall.
The Concern of Key Labor Trends
In recent years, filling jobs with experienced workers has been a challenge for organizations across industry lines due to ongoing labor shortages. As a result, many employers have begun hiring a larger number of inexperienced workers. However, such a practice comes with workers’ compensation risks.
In fact, according to a recent survey conducted by the Golden Triangle Business Roundtable in Texas, employees with less than five years of experience contribute to 43% of overall workplace injuries. This is likely because inexperienced workers often lack years of safety training and may be more willing to take unnecessary risks.
In addition to a rise in inexperienced employees, the past decade has also brought on an aging workforce. According to the U.S. Bureau of Labor Statistics, the share of employees over the age of 55 in the labor force is expected to increase to nearly 25% by 2024 (up from 21.7% in 2014). Such a statistic is notable, as the cost of workers’ compensation claims generally increases as employees age. After all, because health typically diminishes with age, the impact of minor injuries can be more severe for older workers—taking them longer to fully recover.
Furthermore, age-related changes and declines can include a shorter memory, slower reaction times, a decline in vision and hearing, or a poor sense of balance. These limitations can lead to many injuries for older workers, including falls caused by poor vision or a slowed reaction time, sprains and strains due to a loss of strength or balance, and injuries from repetitive tasks.
These trends emphasize how crucial it is for your organization to promote a safe working culture and prioritize injury prevention. Specifically, be sure to conduct routine safety training for all employees and implement effective workplace safety policies.
The Results of Marijuana Legalization and Workers’ Compensation Trends
Following the 2020 election results, medical marijuana is now legal in 36 states, and recreational marijuana is now legal in 15 states. In response, your organization will need to review changes to your state’s legislation (if any) and adjust your workers’ compensation program accordingly.
In terms of medical marijuana, very few prescription drugs that are approved by the U.S. Food and Drug Administration (FDA) and contain marijuana exist on the market. And because doctors are only permitted to prescribe FDA-approved drugs, the actual prescription of medical marijuana for treatment is rare. That being said, if your state has legalized medical marijuana, it is best to consult legal counsel to ensure that your workers’ compensation program supports compliant treatment options.
In regard to recreational marijuana, it should be treated similarly to alcohol usage in the workplace. That is, it should be prohibited during work hours, as it can hinder employees’ abilities to perform tasks safely and increase the likelihood of injuries—contributing to workers’ compensation claims.
We’re Here to Help
You don’t have to respond to this changing risk landscape alone. We’re here to help you navigate these trends with ease. For additional workers’ compensation resources, risk management guidance and insurance solutions, contact us today.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
When a company experiences significant increases in workers’ compensation costs, it usually triggers internal activities aimed at reducing insurance costs and spending. The key to spending fewer dollars is more than just stopping a few accidents; it is having a sound safety program designed to continuously improve. This is where a safety program that, at a minimum, is compliant with the Occupational Safety and Health Administration (OSHA) standards can yield significant savings for by reducing injuries and illnesses, reducing workers’ compensation costs.
Reducing Workers’ Compensation Costs by Building a Solid OSHA Program
There are five elementary steps can take to have a well-rounded safety program that produces a safe work environment, achieves OSHA compliance, reduces accidents and ultimately reducing workers’ compensation costs.
Develop the various programs required by the OSHA standards.
Integrate those programs into the daily operations.
Investigate all injuries and illnesses.
Provide training to develop safety competence in all employees.
Audit your programs and your work areas on a regular basis to stimulate continuous improvement.
Develop Programs Required by OSHA Standards
Aside from being a requirement for general industry, the OSHA standards provide a good pathway to incident reductions. A good number of accidents stem from poorly developed or poorly implemented OSHA programs: failure to keep walking and working surfaces clear may result in slips or trips, not using personal protective equipment may result in excessive lacerations, and poor lifting techniques can result in strains.
Many of the OSHA standards require some type of written program be developed and then communicated to employees. Experience shows that companies with thoroughly developed OSHA-compliant programs have fewer accidents, more productive employees and lower workers’ compensation costs.
Integrate Programs into Daily Operations
Policies alone won’t get results; the program must move from paper to practice in order to succeed. Putting a policy into practice requires a strategic plan clearly communicated to key participants, good execution of that plan based on developed competencies and a culture that inspires and rewards people to do their best.
When developing any business initiative, there must be an emphasis on frontline supervisors and helping them succeed. Every good business person knows that any new program—safety, quality or anything else—lives and dies with the frontline supervisor. If the frontline supervisor knows the program and wants to make it happen, the program succeeds; if not, the program is a source of constant struggle and an endless drain on resources and energies. Providing supervisors with knowledge and skills through training is critical to the success of any program.
A solid OSHA program integrated into the daily operation and led by competent supervisors is just the beginning. Successful safety programs focus on being proactive instead of always reacting to issues. Accident investigations provide an excellent source of information on real or potential issues present in the workplace.
Investigate All Injuries and Illnesses
Workers’ compensation is designed to recompense employees for injuries or illnesses they suffer in the course of their employment. This should not come as a surprise, but increasing numbers of claims drive up workers’ compensation costs. To reduce those costs, you must simply reduce your accidents, and the ability to reduce accidents is significantly enhanced when those accidents are fully investigated instead of simply being reported.
Accident reports are historical records only citing facts, while accident investigations go deeper to find the root cause and make improvements. Businesses that stop rising workers’ compensation costs have an effective accident investigation process that discovers the root cause of the problem. Unless the root cause is discovered, recommendations for improvement will remain fruitless. Again, training proves beneficial because a supervisor skilled in incident analysis is a better problem solver for all types of production-related issues, not just safety.
All accidents should be investigated to find out what went wrong and why. Some may suggest investigating every accident is a bit over the top and only those that incur significant costs are worthy of scrutiny. But ask yourself this question: If you only investigated serious quality concerns instead of every little deviation, would your quality program still be effective? Companies with solid quality programs investigate and resolve every deviation from quality standards.
If your emphasis is only on those incidents that have to be recorded on the OSHA 300 log, you close your eyes to the biggest accident category: first aid-only incidents. Many companies get upset about recordables or lost time accidents because of the significant costs involved, but they don’t realize that the small costs and high numbers of first aid-only incidents really add up.
Statistics show that for every 100 accidents, 10 will be recordable and one a lost-time incident. If you investigate only recordables or lost time accidents, 89 go unnoticed. Would you consider a quality program that allows an 89% failure rate successful? Reducing serious accidents means you must reduce your overall rate of all accidents – including first aid-only incidents. That only happens when every incident is fully investigated to find the root cause, and remedial actions are identified and integrated into the daily operation.
Training and Auditing for Continuous Improvement
The final steps focus on training and auditing your program for continuous improvement. Training plays a significant role in safety and in reducing workers’ compensation costs. The goal of training is to develop competent people who have the knowledge, skill and understanding to perform assigned job responsibilities. Competence, more than anything else, will improve all aspects of your business and drive down costs. Supervisors must have the knowledge and ability to integrate every safety program into their specific areas of responsibility. Every employee must know what is expected of them when it comes to implementing safe work procedures. Once the programs are developed and implemented, they must be reviewed on a regular basis to make sure they are still relevant and effective.
This might require a significant change in how you manage your safety program, but if your workers’ compensation rates are high, it may be time to make this leap.
Tangible Benefits
Studies indicate there is a return on investment and that companies see direct bottom-line benefits with a properly designed, implemented and integrated safety program.
A competency-based safety program is compliant with OSHA requirements and therefore reduces the threat of OSHA fines.
A competency-based safety program lowers accidents, and fewer accidents lower workers’ compensation costs. When incidents do occur, a competency-based safety program fully evaluates the issue and finds the root cause to prevent reoccurrence and provides a workplace that is free from recognized hazards.
A safer workplace creates better morale and improves employee retention. Auditing keeps your programs fresh and effective and drives continuous improvement.
A competency-based program produces people who are fully engaged in every aspect of their job and are satisfied and fulfilled producing high-quality goods and services.
How Can We Assist You?
At GDI Insurance Agency, Inc., we are committed to helping you establish a strong safety program that minimizes your workers’ compensation exposures. Contact us today at 209-634-2929 to learn more about our OSHA compliance, safety program, and accident investigation tools and resources.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Contact us today 1-209-634-2929 for your comprehensive workers’ compensation insurance quote! We can help with reducing workers’ compensation costs!
Understanding Workers’ Compensation changes for COVID-19. Under most state workers’ compensation (WC) laws, COVID-19 may be a compensable, work-related condition only if an employee can show that:
He or she contracted the coronavirus while performing services growing out of and incidental to his or her employment; and
The disease arose out of that employment (work relatedness).
As of June 30, 2020, however, several states have made—or are in the process of making—changes that reverse this burden for certain employees. In general, these changes mean that it would be an employer’s burden to prove that an employee didnot contract COVID-19 on the job, rather than the employee’s burden of proving that he or she did contract it on the job. While most of these changes apply only to certain types of workers—such as first responders, health care providers or those who are otherwise deemed “essential”—some changes apply the new presumption more broadly.
Many states have also taken actions that aim to reduce the impact of COVID-19-related claims on an employer’s WC premium rates.
This Compliance Bulletin provides general information about the COVID-19-related changes made to state WC laws and policies.
Employers should follow all workplace safety guidance from the Occupational Safety and Health Administration (OSHA), the Centers for Disease Control and Prevention (CDC) and local health authorities to minimize the risk of employees contracting COVID-19 on the job.
Employers should also familiarize themselves with state laws that may impact their workers’ compensation COVID-19 obligations and premiums.
Workers’ Compensation Law Background
Workers’ compensation is a no-fault system that provides medical expenses and lost-income replacement for employees who sustain injuries or illnesses that arise out of and in the course and scope of their employment.
Each state has its own workers’ compensation law that governs of the process of determining whether an injury or illness is work related and therefore compensable. Although workers’ compensation benefits are usually the exclusive remedy against an employer for any compensable condition, employers may also be subject to private lawsuits if they intentionally cause harm to an employee or fail to have workers’ compensation coverage as required.
Workers’ Compensation Changes for COVID-19 Compensability Presumptions
The table below provides a general overview of the changes to state workers’ compensation laws that have been enacted to provide a presumption that COVID-19 is a compensable, work-related condition for certain employees. Similar changes remain pending in other states. Employers should become familiar with (and regularly check for updates to) the detailed requirements that may affect them under all applicable laws.
Premium Calculations
The premiums an employer must pay for coverage under a workers’ compensation insurance policy is usually determined based on payroll, measures of risk associated with the jobs that workers perform and the number and type of WC claims that have been made against the employer in the past. Due to the effects the COVID-19 pandemic may have on these factors, some states (including California, for example) allow employers to reclassify employees or exclude COVID-19-related claims from their calculations.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive workers’ compensation insurance quote!
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The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
