Control Workers' Compensation costs by working together
Here are 10 steps you can take that can have a direct
impact on your workers' compensation insurance costs.
- Match the applicant carefully to the job. Base the match on the applicant's skills and abilities. Your careful hiring practices can go a long way toward reducing your costs. The Department of Fair Employment and Housing offers brochures to help guide you in conducting job interviews. Note: Discrimination because of a handicap is unlawful.
- Make safety as priority on the job every day. A safe workplace can lower your claims costs. It is far less expensive to prevent an accident than to pay for one. State Fund's loss control staff can help you provide a safe and healthy workplace for your employees by creating safety programs relevant to your business operation.
- Fix dangerous conditions. When you become aware of a hazard on the job site, take appropriate corrective measures. Your failure to do so could result in a "Serious and Willful Misconduct" suit against you. This suit carries severe penalties that you would pay, not your insurance carrier.
- Train supervisors. Workers' compensation law includes supervisors in the definition of "employer." When a supervisor fails to follow the law, it counts against you, Share this brochure with your supervisors and make sure they know all that is required of employers.
- Report employee injuries. As soon as you are aware of an injury, notify your carrier by completing and sending the Employer's Report of Occupational Injury or Illness (form 3067). The report requires you to provide information that includes the nature of your business, the type of employee injury or illness, and how it occurred. Your complete statements in each of these sections are necessary for determining the appropriate benefits. For example, information about your employee's work hours and salary is necessary for computing benefit payments. Please don't leave any sections blank.
- Provide the employee claim form. You must provide the employee with a Workers' Compensation Claim Form (form 3301/DWC1) within one working day of learning of an injury. The employee should return the completed form to you, When you receive the employee's claim form, make sure you sign and date it. You must then immediately forward the original to your carrier. The first indemnity payment is due within 14 days of your knowledge of a disabling injury.
Failure to provide timely benefits may result in a penalty. The penalty may cost you, the employer, if findings indicate that you did not file the claim form with your carrier on time.
Note: Be aware that signing the Employer's Report and the Workers' Compensation Claim Form does not constitute acceptance of a claim.
- Exercise medical control. Be sure to post notices with the name, address, and phone number of your medical provider so your employees know where to go in case of an injury.
If the employee has previously notified you of his or her personal physician, the employee has the right to be seen by that physician, under certain conditions, or unless an emergency requires otherwise. Predesignation is allowed when the employer offers group health coverage (HMO/PPO/HCO) and when the physician meets the following requirements:
- Must be the employee's regular physician.
- Must be the employee's primary care physician.
- Must be licensed per Business & Professions Code.
- Must have previously provided the employee's treatment.
- Retains the employee's medical records, including medical history.
- Agrees to be the employee's predesignated physician.
To predesignate, employees must give you the name and address of their physician in writing, before they are inured. IF they do not predesignate, you should arrange initial treatment with a physician within the MPN. After this initial treatment employees will be able to choose a physician within the MPN. - Communicate with your employees. Show them you care about their well-being. IF an employee sustains an injury, stay in touch throughout the recuperation period.
- Consider a Return To Work program. A Return To Work (RTW) program can help bring your injured employee safely back to work as early as possible. You adjust the transitional job to accommodate the employee's improving condition until he or she can return to his or her usual duties.
You reduce your costs your employee can return to a self-supporting status; everybody benefits. Doesn't that make good sense? - Maintain records. Your personnel files can be of great assistance to your carrier in dealing with some cases. Information about an employee's job description, wages, previous work history, recreational activities, any current work problems, and previous injuries is essential when fighting disputed claims.
— Courtesy of State Fund.
