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How Can Your Hiring Practices Reduce Workers’ Compensation Claims?

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Boulder Insurance Update

It is true that no company will be free of Workers’ Compensation claims completely. Accidents do happen, and that is why you have Workers’ Compensation Insurance. The goal should be to develop a pattern of reduced claim numbers and claims costs from year to year.

Having good job descriptions, safety, and claims management programs are a sure way to help your company improve its Workers’ Compensation experience. Why is this important? Because according to data from such sources as the U.S. Bureau of Labor Statistics as well as the NCCI, inexperienced and untrained workers account for a disproportionately large portion of lost time claims.

Developing hiring practices that are focused on Workers’ Compensation claims reduction can be another way to reduce costs. Hiring the best qualified candidates can have a direct impact on your Workers’ Compensation costs. There are specific steps you can take to recruit and hire more effectively that can reduce potential Workers’ Compensation and Employment Practices Liability claims. Here is our three point process to help you get your program off the ground:

  1. Don’t Rely on a newspaper add to recruit – Develop a network of contacts, use professional recruiters, current employees, and even social media to find the best candidates. Sometimes recruiters can ask questions you can’t.
  2. Screen, Screen and Screen
    1. Pre-employment drug screening is one of the most common tools employers use to screen candidates. Drug use and workplace injuries are tied together.
    2. Do complete background checks. Remember to notify and get written permission from the employee to conduct the background screening. Criminal background checks may also reveal useful information. If you get permission you can also check on past work related injuries.
    3. Conduct pre-employment physicals and testing. Find out if the candidate can actually complete the job requirements?
  3. Inform and train employees on workplace safety – This should be part of the interview and job offer process. Be sure you have a safety program in place that will educate and train your employees on safety precautions. Make sure your safety program includes an antifraud statement, and have the candidate review and sign it.

If you do extend a job offer, make it conditional, contingent upon the candidate’s ability to perform the functions of the job. Always have a 90 day probation period for all new employees.Many people do not realize the importance of commercial insurance products and are reluctant to spend a decent amount of money on it. Finally they realize their mistake too late to correct it, as their insurance product does not provide adequate amount for the damages caused by an external agent. Commercial insurance products make sure your company is successful and safe through both favorable and unfavorable times.

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