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Managing workplace safety and worker’s compensation insurance starts with a practical risk assessment. This article explores the essential steps in identifying potential hazards, evaluating job risk levels, and customizing the insurance to meet your needs. You will see how a thorough risk assessment can reduce workplace injuries and safeguard your organization against costly claims.

Identifying Workplace Hazards

Identifying workplace hazards helps prevent work-related injuries and illnesses, reducing worker's compensation claims. This proactive approach allows employers to create safer work environments and reduce the likelihood of incidents that could lead to compensation claims.

The essential steps in identifying workplace hazards include:

Gather Existing Data

Start by collecting and analyzing existing information on workplace hazards by reviewing the following:

• Incident reports
• Employee compensation records
• Safety data sheets
• Operations manuals
• Public information on industry-specific hazards

Conduct Workplace Inspections

Inspect all areas of the workplace to identify potential safety hazards, including:

• Storage areas
• Maintenance facilities
• Office spaces
• Contractor work areas
• Vehicles used on-site

Involve workers in the hazard identification process since they have unique insights into their daily tasks and can provide valuable information about potential risks. Encourage them to report on their observations, participate in inspection teams, and provide feedback on work operations or equipment changes.

Evaluating Job Risk Levels

Perform a job hazard analysis to identify risks associated with specific tasks. This process involves:

• Breaking down the jobs into individual steps
• Identifying potential hazards at each step
• Determining appropriate control measures

Recognize Different Types of Hazards

Be aware of various hazard categories:

• Ergonomic risks (repetitive motions, heavy lifting)
• Physical hazards (noise, radiation, extreme temperatures)
• Biological hazards (molds, infectious diseases)
• Chemical hazards (toxic substances, fumes)

Customizing Insurance Needs

Any business can customize its workers' compensation needs using several strategies to ensure they have the right coverage while possibly reducing costs:

Industry-Specific Policies

Insurers will provide coverage tailored to specific industries, such as construction, which may have unique risks and requirements.

Business Size Considerations

Small businesses often benefit from more tailored solutions than traditional options for larger corporations, while larger, financially strong companies may choose a large deductible or self-insurance plan.

Customized Safety Initiatives

Companies can implement workplace safety programs to reduce injury risks or utilize the safety services provided by insurers to create safer environments.

Return-to-Work Programs

Businesses can develop tailored return-to-work programs to help injured employees transition back to work, reducing claim duration and costs.

Specialized Claims Handling

Work with insurers or third-party administrators that offer:

• Industry-specific claims expertise
• Nurse case management for complex cases
• Preferred medical provider networks

Proactive Claims Strategies

Implement early reporting systems for workplace injuries and use claims advocates to manage complex cases effectively.

Accurate Job Classifications

Work with brokers to ensure employees are classified correctly based on their job duties and associated risks, and conduct periodic coverage reviews to adjust for changes.

Self-Insurance Options

For eligible businesses, self-insurance with excess coverage can provide more control over claims management and potentially reduce costs.

By implementing these customization strategies, businesses can create a workers' compensation program that aligns closely with their specific needs, risk profile, and financial objectives.

We Can Help Your Company with Workers’ Comp Insurance

Looking for an experienced and reliable workers’ compensation insurance agency? Contact American Insuring Group online, or call (800) 947-1270 or (610) 775-3848. Our independent agents will find you the perfect policy at an excellent price. Contact us today to get started!

Companies hoping to protect their businesses and employees must choose the right workers’ compensation insurance plan. By assessing their business needs with a thorough evaluation of their company's size, industry, and the nature of their employees' work, they can get a head start determining the coverage level necessary to protect their business fully. 

Here are the following steps:

Understand Your Coverage Options

Not all workers' compensation plans offer the same coverage. When evaluating plans, look for these essential coverage elements:

1. Medical Expenses: Covers costs for emergency room visits, surgeries, and prescriptions related to work injuries
   
   
2. Disability Benefits: Provides financial support for employees who become temporarily or permanently disabled due to work-related incidents
   
   
3. Vocational Rehabilitation: Offers training and support to help injured workers return to work or find new employment if they can't return to their previous role
   
   
4. Funeral Costs: In case of work-related fatalities, the plan should cover funeral expenses

Do a Cost vs. Benefit Analysis

When evaluating the costs and benefits of workers' compensation insurance, consider several factors:

Cost Factors

• Industry and Risk Level: High-risk industries like construction and manufacturing face higher premiums.
  
  
• Payroll Size: Premiums are calculated based on payroll, with larger payrolls generally resulting in higher overall premiums.
  
  
• Claims History and Experience Modification Rate (EMR): A history of frequent or excessive claims typically leads to higher premiums.
  
  
• Geographic Location: Costs vary by state due to regulations and cost of living differences.
  
  
• Employee Classification: Employees are assigned classification codes based on job duties, which affect premium rates.

Benefits

1. Employee Protection: Covers medical expenses, rehabilitation costs, and lost wages for work-related injuries or illnesses.
   
   
2. Legal Compliance: Meets state requirements for business operation.
   
   
3. Financial Security: Protects businesses from potentially costly lawsuits and medical expenses.
   
   
4. Employee Retention: Demonstrates commitment to employee well-being, improving morale and retention.

Cost-Saving Strategies

1. Accurate Classification: Ensure employees are correctly classified to avoid overpaying.
   
   
2. Safety Programs: Implement workplace safety initiatives to reduce accidents and potentially lower premiums.
   
   
3. Regular Policy Reviews: Conduct periodic reviews to ensure coverage reflects current business operations.
   
   
4. Compare Quotes: Obtain quotes from multiple providers to find the best rates.
   
   
5. Consider Deductibles: Higher deductibles may lower premiums, but make sure you can afford out-of-pocket costs if a claim occurs.

By carefully weighing these costs and benefits, businesses can make informed decisions about their workers' compensation insurance while ensuring adequate coverage.

Confirm the Provider’s Reputation and Reliability

When choosing an insurance provider, look for companies with positive customer reviews and check their financial stability ratings (e.g., AM Best ratings). Consider the provider's experience in your industry.

Since a smooth claims process is crucial, evaluate the provider's claims handling procedures. Look at their customer service quality and responsiveness and the availability of risk management and safety resources.

We Can Help Your Company with Workers’ Comp Insurance

Looking for an experienced and reliable workers’ compensation insurance agency? Contact American Insuring Group online, or call (800) 947-1270 or (610) 775-3848. Our independent agents will find you the perfect policy at an excellent price. Contact us today to get started!

Worker's compensation insurance provides financial assistance and medical benefits to employees who suffer work-related injuries or illnesses. Employers and employees should understand the costs associated with worker's compensation since these costs impact organizational budgets and influence the welfare and recovery of the workforce.

The fundamental components include direct expenses, such as insurance premiums, medical care, and wage replacement benefits, and indirect costs, such as loss of productivity, training replacement workers, and potential legal fees.

A comprehensive grasp of these financial elements helps organizations manage risks effectively while ensuring compliance with relevant laws and regulations, ultimately supporting a safer and more secure working environment.

Premium Factors

Several factors influence the calculation of workers' compensation premiums:

• The primary factor is the industry classification, which assesses risk levels based on the nature of the work; industries with higher risk of injury, such as construction and manufacturers, typically face higher premiums.
  
  
• The employer's claims history also plays a critical role since a record of frequent claims elevates premiums because of a perceived higher risk.
  
  
• Payroll size is considered, with higher payrolls generally leading to higher premiums, as they reflect the number of employees covered.
  
  
• Additionally, the experience modification rate (EMR), which compares a company's claim history with industry norms, adjusts premiums based on past performance.
  
  
• Safety programs and workplace conditions also affect premiums, as foresighted risk management might lead to discounts.

How to Reduce Costs

Companies looking to decrease worker’s compensation costs should have a strategic plan and a proactive approach to workplace safety. One effective method is implementing comprehensive safety training programs to help prevent accidents and injuries. Regular safety audits and inspections can identify potential hazards early, allowing for timely corrective measures.

Encouraging a culture of safety and open communication ensures that employees feel responsible for maintaining their work environment. Employers can also consider modifying work processes or investing in ergonomic equipment to reduce injury risks.

Managing claims efficiently by providing prompt medical care and facilitating a smooth return-to-work process can minimize downtime costs. Additionally, exploring alternative insurance options and negotiating with insurance providers may yield more favorable premium rates, benefiting the company's bottom line.

Comparing Providers

To effectively compare providers and reduce worker's compensation costs, companies should consider the following steps:

• Gather detailed quotes from multiple insurance carriers, focusing on the premium rates and coverage options.
  
  
• Evaluate each insurer's reputation, financial stability, and customer service record for reliability and the likelihood of smooth claims processing.
  
  
• Examine the extra services, such as risk management consulting or safety training programs.
  
  
• Compare the flexibility of different plans regarding deductibles and coverage limits, as it allows companies to tailor policies to their specific needs.
  
  
• Consult with insurance brokers or advisors specializing in worker's compensation. This step can provide expert insights and a thorough comparison.

Contact Us to Lower Your Workers Compensation Insurance Costs

To find the right workers comp insurance for your business at the right price, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848 to get started!

The average cost of workers' compensation claims in the U.S. is a staggering $0.46 per employee per hour worked. Businesses are paying out billions of dollars every year to cover legal costs. However, workers’ compensation insurance can be affordable if companies take the right approach to forklift safety. Improving standards in warehouses, yards, and other building areas can reduce the risk of injury and keep premiums low. 

Here’s how you can improve forklift safety and reduce the risk of employees making claims: 

Ensure Employees Remain Two Meters (Or More) From Forklifts In Operation

One method is to ensure employees remain two meters or more from forklifts in operation. This practice in warehouses and yards reduces the risk of crush injuries where drivers reverse into people they can’t see behind them. It may make things less efficient in some warehouses. but it can be managed. Forklift drivers can alternate their activities with pickers to optimize their movements. 

Wear Hi-Vis Clothing

Forklift operators should also dress in appropriate workwear to protect themselves and be more conspicuous to other site users. High-visibility jackets, luminous hard hats, and safety shoes are a must. 

No Loading While Moving

Avoiding loading while moving is another essential. Forklift drivers should avoid any actions that might cause the vehicle to topple over (which can happen during loaded directional changes). If forklift drivers take risks at your business, institute training and a disciplinary policy. Drivers who break the rules should face consequences. 

No Rides

Forklift truck drivers should also avoid giving rides to other people in the workplace. While it might be convenient or fun for staff, it is also dangerous. If you notice employees taking rides on forklifts, initiate disciplinary action. Ensure you send a message to your team that this sort of behavior is prohibited. 

Maintain 360-Degree Visibility

Another way to reduce worker’s comp claims is to ensure forklift drivers are maintaining 360-degree visibility of their vehicles. Staff should have a view of the rack and loading position. The OHSA also recommends: 

• Looking in the direction of travel
• Making use of mirrors
• Using lights if working outdoors or at night
• Warning approaching staff and making eye contact with them

Implement Floor Markings

It can also help to implement floor markings to reduce risks further. These boundaries show where it is safe for pedestrians to wal(610) 775-3848k (similar to sidewalks on the public highway). Zones keep drivers and staff separate and prevent new hires from straying into dangerous areas. 

Observe Equipment Capacity

Lastly, companies can reduce the risk of costly payouts by observing equipment capacity and avoiding overloading. Forklifts can only carry so much until they topple over. When they do, the risk of serious crush injury and death is high. 

Start Saving on Workers Compensation Insurance

Stop spending a fortune on your WC insurance premiums. Our independent agents specialize in comparing rates from competing carriers to find you the best price on quality insurance protection. Call (610) 775-3848 or  Contact us online today for the best rates on worker's compensation insurance.

The COVID-19 pandemic resulted in a severe uptick in the number of employees working remotely. While working from home offers many benefits to both employee and employer, it also introduces many safety challenges that can affect Workers' Compensation Insurance.

According to U.S.A. Today, approximately 22 million U.S. employees work from home all the time. That is roughly 14% of the adult workforce, and experts predict that by 2025, more than one in five Americans will work remotely.

Safety Challenges When Employees Work Remotely

"A fast-emerging concern is the long-term health and safety of people working at home," one expert states. "The slips, falls, and other accidents associated with in-person workplace injuries have migrated to home. Safeguards normally found in the workplace may be missing at home. Few home working spaces can replicate the environments of well-planned business spaces. Not all workers have access to a dedicated home office space, good chairs and desks, ergonomic monitors and keyboard placements, specialized lighting, [and] other office basics that help reduce accidents." In fact, household injuries have risen from a rate of 14.3% in 2017 to 28% in 2020. Most of these injuries are due to falls (32%) or cuts (11%).

People working from home also tend to work longer hours with fewer breaks, causing physical fatigue and injuries like carpal tunnel. Challenges in balancing work and home, in-home distractions, and the loss of collaboration with colleagues can increase stress and anxiety.

And finally, people working remotely have become the primary target for cyberattacks, which has risen 238% in volume since the beginning of the pandemic. Statistics show that 30% of remote workers don't get regular training from their employers, 44% engage in cybersecurity training once per year or less, and 75% pay for their home office-related costs.

6 Safety Tips for Remote Employees:

1. Regularly Communicate With Remote Workers
   Good communication lets your employees know what is happening, what is expected of them, what cyber threats to be aware of, and how to protect themselves when working remotely.
   
   
2. Provide Appropriate Training
   Appropriate training will be unique to each situation, but some examples may include home safety training, cyber-security training, and proper ergonomic training.
   
   
3. Encourage Regular Breaks
   When working remotely, it's more tempting to work through breaks and lunches than when working onsite. However, according to Michigan State University, "Skipping breaks can lead to faster burnout and higher stress levels. Employees stepping away from work for a few minutes increases their productivity, job satisfaction, mental health and well-being, and are overall more engaged in their work."
   
   
4. Consider Offering Stipends to Employees
   As mentioned above, 75% of remote employees pay for their home office-related costs. Providing a stipend to employees for things like ergonomic chairs, surge protectors, fire extinguishers, etc., can help minimize safety risks.
   
   
5. Address Workplace Ergonomics
   Typical workplace ergonomic issues include monitors that are too low, improperly used armrests, using phones without a headset, and more. Addressing these issues with training or stipends can help reduce many musculoskeletal disorders, such as tendonitis, tension neck syndrome, and carpal tunnel.
   
   
6. Create a Telecommuting Policy

   A telecommuting policy should outline the hours an employee will be working, list employer-owned equipment the employee can use outside the workplace, describe how employees should store and dispose of sensitive information, details about how work-related injury investigations will occur, etc.

Quality Worker's Compensation Insurance

At American Insuring Group, Ltd., we offer cost-effective worker's compensation insurance from many competing insurance companies. We work hard to get you the best price on quality insurance to protect your business and your employees, whether they work remotely or onsite.

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

In Pennsylvania, almost every employer is required to carry Workers' Compensation (WC) Insurance for their employers. WC is a type of small business insurance that covers employees for work-related injuries. A typical Workers Comp policy pays lost wages and medical expenses incurred due to a work-related accident while also protecting the employer against accident-related lawsuits. According to Forbes, the average cost per $100 in payroll in 2020 was $1.19.

Most businesses need this crucial insurance to obey the law and to help protect their business and employees. While most employees are honest and most Workers' Comp claims are legitimate, Workers' Compensation insurance fraud does occur, increasing the cost of WC premiums.

What is Workers' Comp Fraud?

Experts estimate that WC insurance fraud costs companies $5 to $7 billion annually, representing 1-2% of all WC benefits paid. Fraud can be perpetrated by the employer, the insurance company, or the employee, and it can be claim or premium-related. According to a 2024 Marketdata report, claim-related fraud accounts for about 80% of the cases, and about 82% of claim and premium-related fraud is perpetrated by employees.

Employee claim-related fraud occurs when an employee provides false information on a claim, such as filing a claim for an injury that didn't happen, filing a claim for an injury or illness that is not work-related, exaggerating the severity of the injury, misrepresenting their ability to work, or filing a claim for an old injury that didn't heal.

One way to minimize the risk of Workers' Compensation fraud and lower Workers' Compensation costs is to investigate every workplace accident.

What is an Accident Investigation?

When a workplace accident occurs, it's in the employer's best interest to investigate the accident. Investigations provide many benefits, including identifying hazards and shortcomings in a business's safety and health programs, uncovering fraudulent claims, and lowering Workers' Compensation Insurance costs.

The PA DLI defines an accident (incident) Investigation as "An organized process using written procedures that are applied every time an accident occurs regardless of its severity."

Surveillance may be a part of any WC claim investigation, but it can be expensive and time-consuming. Social media is a cost-effective surveillance tool that investigators can use to help verify the legitimacy of a claim.

How Can Social Media Assist in Workers' Comp Claim Investigations?

"Social media is a part of everyday life for most internet users in the United States and is frequently used for socializing, business, and dating," Statista reports. "As of 2022, the United States had the third-largest social media audience worldwide, after China and India. The United States is home to over 302 million social media users at a social networking penetration rate of over 91 percent."

Facebook is the most popular social media platform, followed by YouTube, Instagram, and TikTok. People of all generations frequently share information, photos, videos, and more on social media platforms.

Many people falsely believe that their social media accounts are private and that no one can see them. However, Aura reports, "In some cases, posts you share privately with friends or in private groups can be shared publicly without your permission. And if your friends don't follow the same stringent social media privacy settings that you do, this information could be accessed by anyone—even scammers and employers." Furthermore, everything posted on social media leaves a "paper trail." Social media is considered a public record in every state.

This makes social media a helpful tool when investigating WC claims. Investigators can gather information for free while in the comfort of their office. By searching the claimant's social media, investigators may find background information, monitor post-injury activities, discover information confirming or contradicting statements in the WC claim, and find evidence that the worker is lying about a disability or physical limitation.

While social media is a great tool, investigators should ensure they are using the tool ethically and that the information they are gathering is admissible.

Lower Your Workers' Compensation Insurance Costs

At American Insuring Group, Ltd., we offer cost-effective Workers' Compensation Insurance from multiple competing insurance companies. It's our mission to get you the best price on quality insurance to protect your employees and your business!

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

When a workplace accident occurs, it’s in the employer's best interest to investigate the accident. Investigations provide many benefits, including lower Workers’ Compensation Insurance costs.

What is Pennsylvania Workers’ Compensation Insurance?

“Workers’ Compensation (WC) is mandatory, employer-financed, no-fault insurance which ensures that employees disabled due to a work-related injury or disease will be compensated for lost wages and provides necessary medical treatment to return them to the workforce,” the PA Department of Labor & Industry (DLI) explains.

If an employer does not have WC Insurance and an employee files a WC claim, the employer will be required to reimburse the Uninsured Employers Guaranty Fund in relation to the claim, including costs, interests, penalties, attorney fees, and fees under section 440 of the Worker’s Compensation Act. Failure to carry WC coverage can also result in “grave civil and criminal risks.”

What is an Accident Investigation?”

The PA DLI defines an accident (incident) Investigation as “An organized process using written procedures that are applied every time an accident occurs regardless of its severity.” According to the PA DLI, “The purpose of the accident investigation is to determine the direct cause of the incident and to prevent similar occurrences by documenting facts, providing cost data, and reinforcing the joint labor-management commitment to safety in the workplace. Identifying the causal or contributing factors in a workplace accident provides the opportunity for these facts to be evaluated in order that corrective actions may be taken.”

Benefits of an Accident Investigation

Yes, an accident investigation will take time and resources, but the benefits it provides far outweigh the costs. And remember, the sole purpose of the investigation is not to lay blame but to determine the root cause of the accident.

Here are some benefits of an accident investigation:

• Detects and prevents any violations or misconduct, including WC fraud
• Ensures compliance with applicable laws and regulations
• Helps identify hazards and shortcomings in a business’s safety and health programs and allows for corrective measures to avoid future accidents.
• If an insurance company questions a Workers’ Compensation Insurance claim, they will launch an investigation. A thorough accident investigation performed immediately following the accident can help expedite the insurance company’s investigation and get the claim closed more quickly, which is in everyone’s best interest.

Accident Investigation Procedures

“The amount of action will depend on the severity of the accident. Follow established company procedure. Begin your investigation as soon as possible,” according to the PA DLI.

Experts recommend the following steps immediately after a workplace accident:

1. Provide Medical Care – Address minor injuries with a first aid kit. For more serious accidents, call 911 immediately.
   
   
2. Secure the Scene – Keep the scene as intact as possible to ensure an accurate investigation.
   
   
3. Collect Evidence – Collect physical evidence, record or photograph the scene, study conditions and environment, and take notes.
   
   
4. Interview Involved Parties – Interview the injured employee and any witnesses. Ask questions such as, what did you witness? Do you know the cause of the accident? Who else witnessed the accident? Is any PPE required for this task, and was the employee wearing it?”
   
   
5. Identify the Root Cause – Remember that an accident may have multiple causes.
   
   
6. Prepare an Investigation Report to communicate the findings to management.
   
   
7. Implement a Corrective and Preventive Action (CAPA) Plan to prevent future accidents. The plan should include corrective and preventative actions
   
   
8. Follow Up to ensure the CAPA Plan is being implemented.

Lower Your Workers’ Compensation Insurance Costs

At American Insuring Group, Ltd., we offer cost-effective Workers’ Compensation Insurance from multiple competing insurance companies. It's our mission to get you the best price on quality insurance to protect your employees and your business!

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Many businesses focus on physical health and overlook the impact mental health can have on their employees, the success of their business, and Workers' Compensation Insurance costs. However, one in five U.S. adults (22.8%) experience mental illness each year, according to the National Alliance on Mental Illness (NAMI).

The Cost of Mental Illness in the Workplace

In the workplace, mental illness can negatively impact employee morale, performance, communication, productivity, and physical capabilities. It can also increase absenteeism and employee turnover. Untreated mental health concerns cost businesses $60,000 annually and $105 billion nationwide, according to Modern Health.

Mental illness also impacts our physical health and can cost businesses even more. "People with depression have a 40% higher risk of developing cardiovascular and metabolic diseases than the general population. People with serious mental illness are nearly twice as likely to develop these conditions," NAMI reports.

Work and Mental Health

As of October 2023, 134.82 million Americans worked full-time, spending about one-third of their lives at work. An employee's work environment can have a positive or a negative effect on their mental health.

The World Health Organization (WHO) reports. "All workers have the right to a safe and healthy environment at work. Decent work supports good mental health by providing:

• a livelihood;
• a sense of confidence, purpose, and achievement;
• an opportunity for positive relationships and inclusion in a community and
• a platform for structured routines, among many other benefits."

Satisfaction at work can also improve recovery, confidence, and social functioning.

On the other hand, "Poor working environments – including discrimination and inequality, excessive workloads, low job control, and job insecurity – pose a risk to mental health," WHO reports.

Workplace mental health risks include the following:

• Excessive workloads
• Understaffing
• Long or inflexible hours
• Being over or under-qualified for a job
• Unclear job role
• Lack of control related to job
• Unsafe physical working conditions
• Negative organizational culture
• Limited support
• Violence, harassment, or bullying
• Discrimination or exclusion
• Job insecurity
• Inadequate pay
• Lack of investment in career development
• Conflicting home and work demands

Tips to Improve Employee Mental Health

If you want to improve employee morale and production and lower absenteeism, employee turnover, and Workers' Comp Insurance costs, there are steps you can take to improve employee mental health.

• Properly train both managers and workers in mental health literacy and awareness
• Increase employees' options regarding when, where, and how they work
• Ensure health insurance that focuses on employee mental health and provides low out-of-pocket costs for depression medication and counseling
• Include employees' input in decisions
• Look at your business culture, including diversity and inclusion policies
• Make mental health tools – brochures, self-assessments, clinical screening, counseling, etc. - available to employees
• Host seminars that cover depression and stress management

Are You Paying Too Much for Worker's Compensation Insurance?

Worker's Compensation Insurance is a type of small business insurance that is mandatory in most states, including Pennsylvania. It covers employees for work-related injuries. A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident while protecting the employer against accident-related lawsuits. 

At American Insuring Group, Ltd., we offer cost-effective Worker's Compensation Insurance from various competing insurance companies, so we can get you the best price on quality insurance to protect your employees and your business!

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Transitional work – part of a return-to-work program - can help lower Worker Compensation Insurance rates and provide many additional benefits.

What is Transitional Work?

Transitional work allows employees injured on the job to get back to work more quickly and safely. Transitional work is a temporary situation that acts as a "transition" until they can return to their full work duties. The transitional work must always be within the injured employee's physician's restrictions, or you risk aggravating the injury.

3 types of transitional work

1. Alternate or Light Duty – With this type of work, the injured employee does less physically demanding work than their regular job.
2. Modified Duty – With this type of work, the injured employee continues to do his regular job but with engineering modifications to the employee's workstation.
3. Work Hardening – With this type of work, the injured employee performs their regular job but slowly increases the difficulty level until they reach their pre-injury work level. This may mean working reduced hours.

What Are the Benefits of Transitional Work?

Studies show that getting an injured employee back to work as quickly and safely as possible benefits the employer, the employee, and even co-workers.

Benefits of getting an employee back to work for the employer:

• Claims are resolved more quickly
• Reduced WC claim costs
• Increased productivity
• Retention of experienced employees
• Reduced accidents
• Reduced absenteeism
• Reduced staff turnover
• Lower training costs
• Reduced overtime pay
• Reduced administrative costs
• Decreased number of grievances and arbitrations
• Improved employee morale and employee relations
• Shows employees that the employer cares about the well-being of its employees

 Benefits of getting an employee back to work for the employee:

• Maintained employment relationship
• Minimizes loss of physical fitness
• Maintained skills
• Maintained pension plans, medical benefits, and group life insurance
• Maintained vacation and sick day benefits
• Maintained social connections and a sense of purpose
• Focuses on abilities rather than disabilities
• Quicker recovery time

How to Develop a Transitional Work Program

"Unfortunately, too many employers see a transitional duty program, also known as a return-to-work program, as a 'make work' situation for both the employer and the injured employee," Michael Stack from the Workers Comp Resource Center explains. "This approach to a return-to-work program often frustrates both employer and employee."

While transitional work needs to be tailored to each individual's work tasks and physical abilities, it should not be quickly thrown together to respond to a crisis. Employers should develop a transitional duty program before it is needed.

Transitional Work Program Tips:

• Create a written return-to-work (RTW) program
• Communicate the RTW program to all supervisors, managers, and employees
• Develop detailed job descriptions for every employee - A detailed job description is an essential tool for a physician to determine whether an injured worker can return to work in either a full or modified capacity.
• Create a list of less demanding tasks that need to be done, such as filing, answering phones, training, or inventory.
• Keep the transitional work as close to the employee's original job duties as possible
• Review the transitional work with the injured employee and address any concerns or issues
• Consult with the treating physician as needed
• Let your insurance agent know when the employee returns to work

Lower Your Workers' Compensation Insurance Costs!

At American Insuring Group, Ltd., we offer cost-effective worker's compensation insurance from various competing insurance companies. We'll work hard to get you the best price on quality insurance to protect your employees and business.

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Most states, including Pennsylvania, require employers to provide Workers' Compensation Insurance for their employees. "Failure to comply with these laws subjects employers to lawsuits by employees and criminal prosecution which could result in substantial fines, imprisonment or both," according to the PA Department of Labor & Industry.

What is Workers' Compensation Insurance?

If an employee is injured in the workplace or becomes ill due to their work environment, Workers' Compensation (WC) Insurance helps cover medical costs and lost wages. In Pennsylvania, WC covers health care expenses, ongoing care, illnesses, repetitive injuries, partial or total disability payments, permanent injury payments, and death benefits. It doesn't matter who or what caused the injury – a faulty machine, the employee, a co-worker, etc.

WC also benefits the employer by limiting an injured employee's right to sue an employer directly for damages that injury or illness causes.

How Workers' Comp Claims Affect Your Business

According to the Occupational Safety and Health Administration's (OSHA) $afety Pays Program, the following are both direct and indirect costs of Workers' Compensation claims:

• Any wages paid to injured workers for absences not covered by workers' compensation
• The wage costs related to time lost through work stoppage associated with the worker injury
• The overtime costs necessitated by the injury
• Administrative time spent by supervisors, safety personnel, and clerical workers after an injury
• Training costs for a replacement worker
• Lost productivity related to work rescheduling, new employee learning curves, and accommodation of injured employees
• Clean-up, repair, and replacement costs of damaged material, machinery, and property
• The costs of OSHA fines and any associated legal action
• Third-party liability and legal costs
• Worker pain and suffering
• Loss of goodwill from bad publicity

 Cost of Not Filing a WC Claim When an Employee is Injured on the Job

We want to clarify that we are NOT suggesting that you not file a claim when an employee is injured on the job. We understand that filing a claim takes time and may increase your WC costs, but failing to report a WC claim promptly can hurt your business, your injured employee, and your worker's comp insurance costs. It can result in legal action against your business, a minor injury morphing into a more severe injury, bad relationships with all employees, bad publicity, and more.

On the other hand, there are many benefits of reporting a WC claim promptly – preservation of evidence, lower cost of claims, quicker return to work, decreased litigation, fraud prevention, and more. There are better ways to lower the cost of WC claims.

15 Tips to Lower the Costs of WC Claims

• Develop a Safety Program
• Provide Appropriate Training
• Work with an independent insurance agent who will compare costs for worker's compensation insurance.
• Use the correct job classification codes.
• Follow OSHA's requirements and standards.
• Implement a Return-to-Work Program
• Design and Injury Response Protocol
• Ensure that your insurance provider has accurate payroll info
• Work With Your Medical Team
• Manage Claims
• Investigate Injuries
• Submit all WC notifications and claim forms promptly
• Prevent Fraud, Waste, and Abuse
• Review Your Loss Run Report
• Utilize OSHA's Estimated Costs of Occupational Injuries and Illnesses and Estimated Impact on a Company's Profitability Worksheet

Are You Paying Too Much for Worker's Compensation Insurance?

American Insuring Group offers cost-effective Worker's Compensation Insurance from many competing insurance companies. We'll work hard to get you the best price on quality insurance to protect your employees and your business.

Don't wait! Call our independent agents today at (800) 947-1270 or (610) 775-3848, or connect with us online.