Are High Workers Comp Claims Caused by Plaintiff's Attorneys

MYTH: High workers’ compensation costs are caused by aggressive plaintiff’s attorneys and laws which favor employees.

REALITY: While it is true to a limited extent that aggressive plaintiffs’ lawyers prolong an employees time out of work, thus making the cost of the claim higher, and that laws which are viewed as claimant-oriented also drive the cost of a claim higher, what plays a larger role in driving the cost of a claim are several workplace factors which a company CAN control. Inaction and lack of planning, poor communication with the employee, adjuster and medical providers are major gaps which drive the cost of workers’ compensation higher. Poor workplace morale and failure to take advantage of existing opportunities are other gaps in company processes which drive costs higher. These gaps cost companies millions of dollars each year by failing to use the tools already available to them.

For example, if you operate in a state where employees are allowed to go to the physician of their choice, you can “coach” them to a physician who is an advocate of transitional duty. Some will use the doctor you suggest. If the employee’s doctor has visited your operation to see the jobs the employees perform, it can be helpful to build a solid relationship between the company and the treating doctor. There are many things a company CAN DO, which are within their control, to reduce their costs.

Robert Elliott, senior vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality. Contact him at: Robert_Elliott@reduceyourworkerscomp.com or 860-553-6604

For more cost-saving tips go to WC Cost Reduction Tips.
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Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.