IN ADDITION TO THEIR SOCIAL COSTS, WORKPLACE INJURIES AND ILLNESSES HAVE A MAJOR IMPACT ON AN EMPLOYER’S BOTTOM LINE. IT HAS BEEN ESTIMATED THAT EMPLOYERS PAY ALMOST $1 BILLION PER WEEK FOR DIRECT WORKERS’ COMPENSATION COSTS ALONE.
Responsible business owners want their employees to be happy, healthy, and safe on the job. However, we are all aware that accidents can sometimes occur.
Workplace injuries and illnesses are costly. If you own a small business and have two or more employees, by law your business may have to carry Workers’ Compensation Insurance (It’s worth mentioning that in some states workers’ comp is mandatory and in others, it is not.). Just consider the following numbers on worker-related accidents:
- $1 billion per week. The estimated amount an employer pays per week for Workers’ Compensation direct costs. Direct costs include Workers’ Comp, medical and legal costs. Indirect costs include work as the result of a workplace injury or illness.
- $1,000 per employee. The injury impact is the value of goods or services each worker must produce It does not represent the average cost of a work-related injury.
- $164.6 billion. The 2017 National Safety Council Injury Facts on costs of work-related injuries and deaths in the U.S.
- 47.2 million. The number of workplace injuries and illnesses a year.
- Average cost per claim is $39,424. According to the National Safety Council Injury 2016 study, the average combined costs per Workers’ Comp claim.
- 8 days. According to the Department of Labor & Statistics, the average number of days a worker is out of investigations, and corrective measures.
If you want to ensure that your business workers’ comp claim could pose, it is essential to have a plan. That’s why we compiled a list of steps you can take to reduce the cost of workers’ compensation and protect your company.