The Role of Workplace Safety in Reducing Workers’ Compensation Claims

Accidents happen. For employers, this, unfortunately, means that workplace injuries and illnesses could have extensive financial implications. After all, businesses that are responsible for their employees’ health issues could face significant lawsuits, fines and other penalties. Even if your company takes responsible steps to maintain workers’ compensation insurance, a claim being filed could incur increased rates upon renewal or make it more difficult to find coverage altogether. That’s why improving workplace safety is an important strategy to decrease the costs and frequency of workers’ compensation claims.

How Does Workplace Safety Relate to Workers’ Compensation Insurance Claims?

Most employers are beholden to legal requirements regarding workers’ compensation insurance, meaning that investing in appropriate coverage is not a choice but a necessity. Still, while such policies may represent a significant investment, prioritizing workplace safety can help limit the financial implications of incidents. Consider the following benefits of prioritizing workplace safety:

• Fewer claims—By committing to safety, such as through educating staff and establishing stringent protocols, you can help employees hold themselves and each other accountable. Encouraging staff to adhere to appropriate safety measures may help prevent incidents that might have otherwise occurred. Fewer accidents inherently mean less workers’ compensation claims.
• Reduced costs—Even the most diligent and well-thought-out precautions may not be able to prevent all accidents and injuries. Fortunately, investing in workplace safety can at least limit the resulting ramifications. For example, if an employee falls while working at height, a harness could still inflict a whiplash injury, but the costs and consequences would likely be less severe compared to the potentially fatal fall they would have suffered had your business not invested in the equipment.

Workers’ Compensation Insurance in Dublin, CA

At JSW Insurance, we’re committed to helping employers maintain safe workplaces and suitable coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.