From The KDDK Advantage - April/May 2007

Third in a Three Part Series
How to Decrease the Cost of
Workers Compensation Insurance
By Greg Freyberger

Workers compensation insurance can be a large expense for most employers. However, there are measures an employer can take to minimize this expense, since the cost of workers compensation insurance is related to the employer’s loss history. Simply stated, the better an employer’s loss history, the better rates will be for workers compensation insurance.

Reducing a loss history is not difficult. Several measures can be taken to limit work-related injuries before they occur, or to prevent them altogether. However, this article is limited in scope to what an employer can do after an injury to limit its expense.

The most important step an employer can take is to properly investigate the accident. Many employers are afraid to do this because they fear an investigation will only substantiate the injured employee’s claims. But a proper and thorough investigation will limit an employer’s risk of exaggerated or false claims.

To conduct a proper investigation, an employer should photograph the scene of the injury as soon as possible. The photographs should include any tool or instrument associated with the injury as well as any other other factor that may be related to the cause of the injury. It is equally important that an employer begin interviewing witnesses to the accident as soon as possible. This should include a recounting of any relevant statements that were made by the injured employee both before and after the accident.

Finally, an interview with the injured employee is key, as this will provide a fresh version of how the accident happened. The interview of the injured employee may also provide key affirmative defenses for an employer if the employee failed to use required safety equipment or was impaired by drugs or alcohol at the time of the injury.

By maintaining a safe workplace and thoroughly investigating work related injuries, employers can limit the extent of their workers compensation claims. By doing this, they will give themselves the best chance at maintaining affordable workers compensation coverage.

In this three-part series Greg Freyberger discussed the origin of workers compensation in Indiana, the employer’s financial responsibility for compensation, and ways to decrease the cost of workers compensation insurance. If you have questions about workers compensation, contact Greg at 812-423-3183 or gfreyberger@kddk.com.

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