A growing number of businesses are now concerned about their workers comp costs, something that has always been a bit of a challenge. Your business could end up paying more in premiums while your payroll becomes diminished, and therefore you should always be looking for ways to reduce your costs while saving money. For many employers, cost containment is their number-one workers comp concern, followed by increasing exposures, costly renewals, and rising fraud behaviors among their employees, which all contribute to those rising costs.
While you may be finding it increasingly more difficult to secure a program that works for you, with the right agency and brokers you may be able to find alternative solutions. Some time ago, when the state first created its workers’ compensation system, the goal was a no-fault insurance program that would foster workplace harmony by resolving disputes over injuries without litigation or recrimination. But the rise in numbers in the workforce has come with increased claims leading to rising costs in premiums.
Fraud is prevalent, costing employers more to maintain coverage
Today many employers and employees are at odds over workplace injuries. Workers, often fatigued from working long shifts, are claiming that companies are going to major lengths to cut back on claims by contesting injuries when they occur. They go as far as to cite being checked on at home, and even being released from employment for filing for benefits, due to assertions that the claim was fraudulent in nature. This is certainly not what the program was intended to implement.
Employers must better manage these issues by taking aggressive steps to curb their costs, while maintaining employee morale and retention. Safety training and injury prevention programs often shown positive results. A single injury could easily cost $10,000, or even several hundred thousands of dollars when a badly maimed worker winds up drawing benefits for life.
Many executives say the system is skewed against them by judges who favor claimants, as well as by malingerers who collect benefits even after they’re well enough to go back to work. The only solution is to implement a strong risk management program aimed at easing tensions in the workplace, which hopefully will help with reducing the cost of workers comp insurance in texas.