What Is Workers Compensation and How Does It Work?
Workers compensation insurance benefits are available to employees who are injured or become ill as a result of a work-related incident. If one of your employees is injured on the job and is medically authorized to take time off from work, he or she will be reimbursed for lost wages and all of the medical expenses related to the treatment and rehabilitation.
California Workers Compensation Insurance Benefits pay workers injured on the job, including medical care, part of lost wages and permanent disability. It also provides death benefits to dependents of employees killed from a work-related accident. Workers’ compensation systems are different in every state, as individual statutes and court decisions have shaped the way they handle claims, evaluate impairments, settle disputes, provide benefits and control costs.
What Are The Reporting Procedures for Injuries and Illnesses?
If employees are injured, they should notify you immediately to file a report. This will initiate the process for receiving workers’ compensation benefits.
How are Employees Reimbursed?
Lost compensation is payable during the time period in which employees are authorized by their treating physicians. Benefits are paid weekly at a state-specific percentage rate of their average weekly wage, up to a maximum dollar amount. There is also a state-specified waiting period before benefits are available.
What is an Independent Medical Exam (IME)?
An IME is an exam by a medical professional other than the physician who first examined an injured or ill employee. As the employer—and insurance carriers—you can request an IME to confirm an original diagnosis and treatment plan.
What Happens if Employees do not Comply with Recommended Treatments?
Non-compliance with recommended medical treatments, therapy or return-to-work plans may jeopardize workers’ compensation benefits.
Tips for Controlling Workers’ Compensation Costs
The most important is to convince your employees that maintaining a safe workplace is vital and will consequently reduce your insurance costs. Here are some other ways to control costs:
- Implement a return-to-work policy in which employees work modified duty until they are fully healthy to do their jobs.
- Orient and train your employees on safe practices necessary for their job functions and tasks.
- Insist that employee claims are reported promptly.
- Investigate the cause of injuries and illnesses.
Managing Your Workers’ Compensation Costs
Your workers’ compensation insurance premium is based on a rating your company has, which is based on payroll, averages for your industry and claims experienced over a three-year period. Claims have a direct impact on this experience modification factor (mod), which can significantly drive up premiums. This means many times a company will pay for its own claims in increased premium costs. There are many things that companies can do to lower their workers’ compensation costs, such as the following:
- Inspecting your insurance policy to make sure that all job classifications and payrolls are correct.
- Making an investment in workplace safety to avoid accidents to improve claim histories and reduce overall costs. If you modify operating procedures even slightly, you can alleviate unnecessary exposure to injuries.
- Considering using a managed care organization that has a relationship with your insurance company. This will help you save on medical treatment costs.
- Creating a modified duty program at your organization to help injured employees return to work sooner. Under these programs, employees are assigned duties that they can physically complete while they recover. The most successful return to work programs incorporate speedy, quality medical care and assistance to reduce emotional stress after an accident.
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. With locations across the heart of California’s Central Valley 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!