Workers’ compensation coverage and worker safety go hand in hand, and it is vital to understand them. Therefore, creating a safe and productive work environment is crucial to the success of any business. Two critical components of achieving this are worker safety and workers’ compensation coverage. Additionally, by complying with state or federal occupational safety and health regulations and supporting injured employees through a Workers’ Compensation Insurance Plan, employers can create a positive work environment that promotes employee productivity and overall well-being.
In this article, we’ll explore the two-way relationship between worker safety and workers’ compensation coverage and the premium costs associated with workers’ comp. Then, we’ll also examine the responsibilities of employers in preventing workplace accidents and creating a culture of safety that benefits both employees and their bottom line.
The Two-way Relationship Between Workers Compensation Coverage and Worker Safety
Worker safety and health standards are guidelines developed by the Occupational Safety and Health Administration or OSHA and implemented nationwide to prevent work-related accidents. Although half of the U.S. states have state plans for workplace safety and health, there is a significant uniformity in safety obligations across states.
However, even if safety standards are in place, accidents and injuries can still occur in the workplace, and this is where workers’ compensation coverage comes in. The coverage helps employers and injured or ill employees with medical expenses, lost wages, rehabilitation expenses, legal charges, and more.
The workers’ compensation laws in most states predate the federal Occupational Safety and Health or OSH Act of 1970, and their contents differ considerably from state to state. It is mandatory for employers in all states (except Texas) to obtain workers’ compensation insurance coverage.
Workers Comp Premiums
Premiums for workers’ compensation insurance can vary across states, depending on several factors, including the industry’s inherent risks, claims history, and the varying formulas used to calculate costs,
The Experience Modification Rate (EMR) is a crucial metric to evaluate an employer’s safety record and claims history relative to others in the industry. An EMR of 1.0 represents an average level of risk. At the same time, an EMR below 1.0 indicates a lower risk (i.e., better than average safety performance), and an EMR above 1.0 indicates a higher risk (i.e., worse safety performance or more claims than the industry average). The higher the EMR, the more expensive the premiums would be.
Responsibilities of Employers
Some of the responsibilities under the OSH Act and workers’ comp are primarily managed by safety managers, while others directly fall on HR or another department within the organization. The duties of safety managers may include making sure safety protocols in the workplace adhere to state or federal safety standards and the OSH Act’s General Duty Clause. Likewise, employers must monitor employees under rehabilitation. They could also contribute by minimizing the employer’s expenses for workers’ compensation claims or insurance premium. Next, their job is to also administer compensation claims. They also manage the return-to-work process for injured workers while also arranging and overseeing light-duty programs for employees incapable of performing their regular duties.
Safety managers can proactively prevent slip, trip, and fall injuries by addressing hazards promptly. They can conduct safety meetings or toolbox/tailgate talks to educate employees on the hazards inherent to their jobs and the proper utilization of hazard controls and personal protective equipment (PPE).
About Insure My Work Comp
Insure My Work Comp provides you with workers’ compensation insurance quotes from top-rated insurance companies. They also help small business owners with a quick and easy way to find affordable workers’ compensation coverage. With Insure My Work Comp, you can also get group disability insurance along with your employee benefit package.