Offering workers’ compensation is more than a strategic advantage for businesses; It is also a legal requirement for many employers in most states of the U.S. But whether you purchase workers’ compensation to enhance your offered benefits or comply with legal regulations, navigating the claims and management process can be just as stressful.
This calls for you to be careful when handling workers’ compensation. In addition to ensuring employee satisfaction, this approach also lets you reduce costs. As a result, you can strike the elusive balance between employee care and financial management.
To make this process easier for you, here are a few dos and don’ts of managing workers’ compensation.
Do Tell Your Employees About Offering Workers’ Compensation
Workers’ compensation acts as a safety net for many workers who are rightfully worried about covering medical costs and loss of income after experiencing work-related injuries or illnesses. Similar to how paid time off and flexibility attract talent, offering workers’ compensation as a benefit can encourage candidates to join your company. With this in mind, make it a point to highlight this perk to new and existing employees.
Don’t Rely on Insurance Providers Who Use Outdated Tools
While you can find workers’ compensation through a plethora of providers, many insurance companies that offer this policy fall short of using modern tools. This not only creates hassles for your workers but also increases your costs. By choosing insurance providers that use advanced PBM software and claims management processes, you can resolve these concerns with ease. You can discuss these details with insurance company agents before opting for a provider.
Do Your Due Diligence Before Choosing an Insurance Provider
Similar to asking what type of tools an insurance company uses for claims, you need to do your due diligence for other aspects of the workers’ compensation system. This includes, but is not limited to, the insurance company’s customer support availability and coverage thresholds. You can also use an employee survey platform to determine what type of qualities your workforce wants to see in the ideal insurance provider.
Don’t Underestimate the Importance of Comparison Shopping
Whether you are renewing your workers’ compensation policy or switching to a new provider, you need to shop around to get the best price in your area. This process does take a bit of time and resources at first. But eventually, it prevents you from overpaying for the exact services that you can get from other providers at cheaper rates. You can also learn important health insurance terms to conduct your research with more confidence.
Don’t Keep Employees in the Dark About Their Rights
It is common knowledge that claiming workers’ compensation benefits requires employees to waive their rights to sue their employer. But many employees, especially those with little to no work experience, might not be aware of that. Instead of keeping such employees in the dark, you should make it a point to educate them about the pros and cons of claiming workers’ compensation. You can also make this a part of your employee onboarding platform.
Do Keep Tabs on How Your Provider Handles Claims
While a money-centric approach may encourage you to choose the cheapest insurance provider, you need to compare more than the total bill of your insurance policy. This is where you can look for reviews of insurance providers to determine how they handle their claims. For an existing provider, you can make an effort to learn more about your employees’ experiences with them. This also helps employees who are concerned about maintaining coverage amid an insurance crisis.
Do you communicate with your employee after their claim?
If you truly want to learn the strengths and weaknesses of your workers’ compensation insurance provider, you should ask employees who have gotten their claims settled by the insurance company. This gives you a clear picture from the start to the end of the claims process and lets you understand how you can make the experience better for your team as well as yourself. You can use internal communications software to easily hold these discussions.
By remembering these points, you can prevent mishaps and ensure ideal handling of the workers’ compensation system across multiple areas. This can help your employees feel more appreciated while also improving your bottom line.
