Workplace accidents are no laughing matter. In fact, a worker is injured on the job every 7 seconds, according to the National Safety Council (NSC). The workplace is a high-risk area for accidents, even seemingly small ones. The top 3 workplace injuries are overexertion (34%), contact with objects and equipment (25%) and slips, trips and falls (25%).
In some cases, injured employees can file a civil lawsuit against their employer, which can cost the company time and money. But a PEO can help mitigate risks associated with workplace accidents and provide appropriate workers’ compensation coverage to protect you and your employees.
The Value of Workers’ Compensation and Risk Management
What is workers’ compensation?
Workers’ compensation is insurance that provides wages and medical benefits to employees who have been injured on the job. Employers with at least one employee is legally required to carry coverage in every state (except Texas). If they don’t have it, they can face severe fines, a heavy lawsuit or even criminal charges.
Workers’ compensation covers injuries that occur while the employee is conducting company business, whether it took place inside or outside of the workplace. It pays hospital and medical expenses necessary to diagnose and treat an injury, provides disability payments while the injured is out of work and it may even cover rehabilitation, retraining and other benefits. And although insurance rates vary by state and the risk of the job, the costs can add up for small businesses.
What is risk management?
With risk management, you can identify potential workplace hazards and develop strategies to ensure a safer environment. It also includes claims administration to optimize medical costs and minimize loss. An effective risk management team and policies in place helps in avoiding - and managing - workplace injuries, thus preventing lawsuits for your company.
How PEO Can Help Prevent Lawsuits
A PEO like PRemployer can provide comprehensive workers’ compensation and assistance with managing risk in the workplace. By providing workers’ compensation insurance, employers are usually protected from having to defend personal injury claims of their employees.
A PEO can also provide risk management to help reduce, and hopefully avoid, workplace injuries from occurring. For instance, PRemployer’s risk management team provides safety manuals and training, while also helping with employee background checks and drug testing. Your PEO can also handle all claims administration in a manner that improves loss control and assist with return-to-work programs for injured employees. The ultimate goal is to aid in establishing a secure work setting and reducing liability while increasing employee productivity.
Workers’ compensation and risk management is key for employers and shouldn’t be taken lightly. Using the services of a PEO can help avoid those areas where your organization may be vulnerable and at risk. PRemployer’s team of HR experts can assess and determine your needs, and provide coverage and reducing risk in order to help prevent lawsuits against the company.
