Insurance Savings and News You Can Use
Join the Conversation!

The legal requirements for worker's compensation insurance can be confusing. Most businesses must take out these policies by law whenever they hire someone but there are differences between states, sectors, and companies. 

This post looks at state-specific requirements, penalties for non-compliance, and when you don’t need a policy. Here’s what you need to know: 

State-specific requirements 

States requiring coverage for all employees include California, New Jersey, Hawaii, Pennsylvania, and New York. These don’t consider the number of employees you have, so insurance applies immediately. 

Other states require businesses to carry worker’s compensation insurance when they reach an employee threshold number. For example, Florida, Georgia, Mississippi, Rhode Island, and South Carolina demand that employers get worker’s comp when they hire four or more employees. For Alabama, Arkansas, Louisiana, Tennessee, and Virginia, it’s three or more, and for North Carolina and Wisconsin, it’s two or more. 

Some states have industry-specific requirements for worker’s compensation insurance that depend on the sector in which you operate. For instance, Michigan and Tennessee require construction worker’s compensation insurance regardless of the number of employees. 

Penalties for non-compliance

The penalties for non-compliance with worker’s compensation insurance regulations also vary considerably by state. Most have fines in place, and some threaten jail time. 

For instance, in California, it is a criminal offense to fail to provide worker’s compensation insurance. The state punishes people with up to a year in jail and fines between $10,000 and $100,000. 

New York also takes a tough stance. The state considers breaking the rules a misdemeanor or felony, depending on the violation. Fines go from $1,000 to $50,000 plus an additional $2,000 for each day without coverage. 

Pennsylvania has some of the strictest rules in the union and considers non-compliance with worker’s comp to be a felony of the third degree. The state imposes fines of up to $15,000 and up to seven years in jail. 

Florida takes a slightly different tack. It institutes a Stop-Work Order on companies found to be non-compliant and requires businesses to cease operations until they pay a fine and put proper insurance in place. Fines are usually twice the amount the employer would have spent on premiums over the preceding two years.

Lastly, in Illinois, employers who willfully fail to provide worker’s compensation insurance according to the rules face fines of $500 daily for non-compliance, with minimum penalties of $10,000. Furthermore, officers at companies failing to arrange insurance for their employees can be held personally liable. 

Exemptions

Despite the tough penalties for worker’s comp non-compliance, many states have exceptions. These include: 

• Sole proprietors and partners who don’t hire anyone and who aren’t official employees of the firm
• Workers who do not meet the definitional requirements of “employees” in some states
• Domestic workers and housekeepers without contracts or working undefined hours
• Independent contractors who aren’t employees (in some states)
• Businesses with less than the minimum employee threshold (as discussed)

Contact us For the Best Pricing on Worker's Compensation Insurance!

If you want guidance on the legal requirements for worker’s compensation insurance, contact our team. As independent brokers, we shop the market to find you the best deal on quality insurance!

So call us today at  (610) 775-3848 or contact us online to start saving.

Every year, 34% of all deaths on construction sites are attributable to falls, more than any other category. And whenever this happens, it is a tragedy for everyone involved, from owners to families of the deceased. However, construction insurance can protect against liability claims. Coverage compensates victims (if injured) or their next of kin if they die, letting you keep more money in your pocket.  

Of course, as a company manager or business owner, your goal is to reduce slips, trips and falls on your construction site as much as possible. You want to keep it safe for everyone. 

But how can you do that effectively? Let’s find out. 

Ensure Workers Wear Full Body Harnesses While Working Above Six Feet

The first (and most obvious) safety precaution is to get workers to wear full-body harnesses when working over six feet (as recommended by the OHSA). Reins should connect to an anchor point using tough nylon cords and feature deceleration devices that break falls if workers plummet to the ground. 

Guard Or Cover Holes, Opening, And Skylights

You also want to take precautions around any building features workers could fall through, such as holes, openings, and skylights as a construction site manager. Covering them with safe equipment is the best option and eliminates the possibility of tumbles. 

If you can’t do that, use guardrail systems to protect trips. Even if workers slip, they can grab onto bars instead of falling into a gap. 

Mark Hazardous Areas

At the same time, mark hazardous areas to make them more conspicuous for workers. Bright paint, warning signs, stickers, or additional lighting can help reduce risk. Site managers should communicate these known hazards to workers and explain their danger. Staff should understand the reasons for the safety precautions. 

Develop A Training Plan

You should also develop a training plan alongside any physical measures you implement to improve safety. Teaching employees about the risks they face helps them understand how to conduct themselves on-site safely. 

Training plans should include: 

• Talking about how the job will be done
• How to use safety equipment
• The essential safety equipment for specific types of works
• Mitigation strategies (such as covering skylights and leading edges)
• The value of fall prevention or mitigation systems

Keep Sites Clean And Organized

Finally, construction managers can reduce the risk of falls on construction sites by keeping them clean and clutter-free. Removing debris from walkways and clearing up spills promptly can protect workers and stop them from slipping or tripping over things. 

Be particularly mindful of power cords for machine tools. These are a significant hazard because workers can’t always correct themselves when they feel like they are about to fall. 

Once you start implementing these methods, you’ll notice the culture of your staff changes. Focusing on safety reduces risk-taking and subsequent claims against you while improving worker well-being. 

The Best Rates on Contractor Insurance

Contact American Insuring Group for the best rates on contractor and workers’ compensation insurance. As independent brokers, we shop the market to find you the best rates on quality insurance for contractors, construction companies, and builders. Contact us online or call (610) 775-3848 today!

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.

Regarding Workers' Compensation (WC) Insurance, ignorance is definitely not bliss. In fact, ignorance can cost your company a lot of money when it comes to WC claims. Therefore, the more you understand medical terminology, the better you'll be able to control Workers' Compensation costs.

Two terms you may see physicians use in a WC claim are "aggravation" and "exacerbation." Sometimes, the terms are used interchangeably, but there is a subtle difference in the definition of each. Both describe the worsening of an existing medical condition.

Aggravation Vs. Exacerbation

The difference is that Exacerbation is "a temporary increase in the symptoms of a pre-existing condition that returns to its prior level within a reasonable period of time (typically two to eight weeks)." An aggravation is "an increase in the severity of a pre-existing condition where the underlying pathology is permanently moved to a higher level."

In Pennsylvania, pre-existing injuries or conditions that are aggravated or exacerbated on the job typically qualify for Workers' Compensation benefits. An injury that is exacerbated or aggravated at work does not change the diagnosis or location of the injury or condition; it just means it was made worse by a work-related activity. However, an aggravated injury will have a bigger impact on the cost of a WC claim.

So, regarding Workers' Compensation claims, the question becomes, "When will the symptoms end?" Are WC benefits limited to a few weeks or indefinite? Medical costs are constantly rising, so insurance carriers don't want to pay for treatments that do not fall within the purview of their responsibility.

Therefore, adjusters will always review medical records, especially with an aggravated injury. Often, they will request an Independent Medical Evaluation (IME) to determine whether the pre-existing condition has been aggravated or exacerbated, which will either move the case along or cause it to be disputed.

Common Causes Of Aggravated and Exacerbated Injuries and Conditions

Any injury or condition that is made worse by a work-related activity can result in a WC claim for an aggravated or exacerbated injury or condition. However, various forms of arthritis are pre-existing medical conditions commonly exacerbated or aggravated at work.

There are more than 150 types of arthritis, such as degenerative disc disease, bone spurring, osteophytes, spondylolistheses, and spondylosis. Many can be caused by disease, infection, genetic defect, injury, or overuse; sometimes, the cause is unknown. Arthritis symptoms include pain, stiffness, inflammation, reduced mobility, and skin redness around a joint.

According to the Centers for Disease Control and Prevention (CDC), an estimated 53.2 million (21.2%) American adults have been diagnosed with some form of arthritis, rheumatoid arthritis, gout, lupus, or fibromyalgia. Furthermore, while many people might assume that arthritis is limited to older workers, 5% of people ages 18-44 and 26% of people ages 45-64 have been diagnosed with arthritis.

Repetitive stress injuries, such as chronic back pain, tennis elbow, and carpal tunnel syndrome, are another common cause of aggravated or exacerbated WC claims. Federal laws require that employers accommodate employees to help prevent repetitive stress injuries. Furthermore, minimizing the risk of a repetitive stress injury can help lower employee absenteeism, improve productivity, lower the risk of aggravated or exacerbated injuries, and lower WC costs, making it a win-win situation.

Lower Your Workers' Compensation Insurance Costs!

Understanding the difference between aggravated and exacerbated injuries and conditions is just one way to lower Workers' Compensation costs. Another way is to work with one of the experienced agents at American Insuring Group, who specializes in WC insurance.

As independent agents, we work hard to get you the lowest price on all your insurance needs by comparing costs among many competing insurance companies.

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

Workers' Compensation (WC) Insurance pays for medical costs and lost wages for work-related injuries and deaths. For example, if someone falls and is injured on the job, is exposed to dangerous chemicals at work, or is injured by faulty machinery while working, they will – in all probability - be covered by WC. But what about workers who are injured or killed by workplace violence?

What is PA Workers' Compensation Insurance?

PA Workers' Compensation is a no-fault insurance most employers are required to carry in Pennsylvania. "The workers' compensation system protects employees and employers," the PA Department of Labor & Industry (DLI) explains. "Employees receive medical treatment and are compensated for lost wages associated with work-related injuries and disease, and employers provide for the cost of such coverage while being protected from direct lawsuits by employees."

What is Workplace Violence?

Workplace violence can involve employees, clients, customers, or visitors. "Workplace violence is the act or threat of violence, ranging from verbal abuse to physical assaults directed toward persons at work or on duty," according to the National Institute for Occupational Safety and Health (NIOSH). "The impact of workplace violence can range from psychological issues to physical injury or even death."

Here are some examples of workplace violence:

• Physical and verbal altercations among employees
• Criminal activities, such as robbery
• Physical confrontations between customers and employees
• Active shooting incidents
• Violence that occurs between an employee and their partner that happens in the workplace

Service occupations, such as health care, law enforcement, education, and retail, are most at risk for workplace violence, but violence can occur anywhere. According to the U.S. Department of Labor, acts of violence are the third-leading cause of fatal occupational injuries in the U.S.

According to the NIOSH, 20,050 workers in the private industry experienced trauma from nonfatal workplace violence that resulted in days away from work in 2020. 76% of those injuries occurred in the healthcare and social assistance industry, and 22% required 31 or more days away from work. In 2020, 392 workers were workplace homicide victims. 30% of them were performing retail-related tasks.

Does Workers' Compensation Insurance cover Workplace Violence?

Workers' Comp is a no-fault insurance, which means it doesn't matter who or what caused the injury. However, for an injury or death to be covered under WC, it must occur in the "course and scope of employment."

In other words, for an injury or death to be covered under Workers Comp, it must be directly related to employment. Therefore, injuries may not be covered under WC if it's a personal dispute unrelated to employment.

While each incident is unique, the following scenarios will typically be covered under WC:

• A police officer is shot in the line of duty.
• A customer attacks an employee because they are unhappy with your company's return policy.
• Co-workers fight over how a work task should be performed.
• Psychological injuries are caused by witnessing a violent event at work.

The following scenarios are typically not covered under WC:

• Someone who has a personal issue with an employee comes into their workplace and causes injury.
• An employee is attacked by someone whom they have a criminal relationship with.
• A husband attacks his wife at her place of employment.
• Two employees fight over a personal matter not related to work.

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

At American Insuring Group, we offer cost-effective worker's compensation insurance from many competing insurance companies. We'll work hard to get you the best price on quality insurance for all your business needs.

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

Workers' Comp Insurance is designed to help pay medical costs for workers injured while on the job. However, approximately 1.3 million business trips are taken daily in the U.S., and whether or not employees are covered under Workers' Comp when traveling can be a bit murky.

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," according to the Pennsylvania Department of Labor & Industry. "The workers' compensation system provides an 'exclusive remedy' to employers and employees and is designed to simultaneously achieve the goals of safer workplaces, prompt compensation and treatment of those it protects, and reduced litigation costs to all parties."

Failure to provide WC coverage for employees can lead to heavy fines and civil and criminal prosecution.

What is a Work-Related Injury or Disease?

"If you are injured in Pennsylvania, you are entitled to Workers' Compensation benefits if the injury occurred while you were in the course and scope of employment," one attorney explains. "However, the 'course and scope' issue is not always that simple, and in fact, is the basis for a lot of Workers' Compensation litigation." 

WC claims for injuries that occur on the clock on the job site are typically relatively cut and dry. For example, if an employee is injured while using equipment at work, that is generally considered a work-related injury and covered under Workers' Comp. If an employee develops carpal tunnel syndrome after keying in data for years at work, that is probably a work-related injury covered under Workers' Comp.

That "course and scope of employment" can make WC claims a bit complicated. For example, what if an employee is injured in an accident on his way to or from an employer-sponsored event? What if an employee is injured while running an errand for their boss? Whether or not these are examples of injuries that occurred during the "course and scope of employment" thereby covered by WC is not always clear.

Typically, the following examples are covered under Workers' Comp:

• Injuries that occur when traveling between job sites.
• Injuries that occur while running an errand at the request of the employer.
• Injuries that occur while traveling to or from a training session, conference, meeting, or similar work-related event.
• When travel is an integral job duty (i.e., couriers and delivery drivers).

An injury that occurs while commuting to and from work is typically not covered by WC Insurance.

Considerations for determining if an injury occurred in the course and scope of employment:

• Did the injury occur while the employee was furthering the employer's interests?
• Who requested that a service be performed?
• Was the task being performed a regular task?
• Did the employee extend their trip for personal benefit?
• Was the employee engaging in illegal or prohibited activities?
• Was the employee engaged in activities unrelated to business?
• Was the employee driving while intoxicated?

There are many nuances courts look at when determining whether or not an injury is compensable. For example, if an employee is injured while getting lunch, they are typically not covered under WC insurance. However, they are usually covered if they also pick up lunch for the boss.

Minimizing Risk

You can't eliminate all risks to your employees, but here are some tips for minimizing the risk of injuries while traveling for work:

• Make social events optional.
• Only send employees on business trips when necessary.
• Avoid sending employees on errands.
• Limit the use of company vehicles for work only.
• If an employee is traveling internationally for work, check the laws in the country they're traveling to.

Don't Overpay for Workers' Compensation Insurance!

At American Insuring Group, 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.

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.