How Employers Can Protect Themselves in California from Rising Workers’ Compensation Costs?

April 14, 2021
Sacks & Zolonz, LLP
Workers' Compensation Defense

Workers’ compensation is seeing many changes. Over the last year, workers’ compensation has been evolving with these unprecedented times, with new rules being rushed out to address the impact of the pandemic.

As a company, how do you keep workers compensation claims from spiraling out of control?

At Sacks & Zolonz, LLC, our Los Angeles, California, leading workers’ compensation defense firm has the experience and skills to help advocate for you at all the levels of a claim. Our dedicated team can assess your risks, investigate and fight fraudulent claims, keep your business on track if you are uninsured, and successfully navigate you through the process.

Call Sacks & Zolonz, LLP, and protect your business.

Workers’ Compensation Is A Critical Business Challenge in California

Small businesses are significantly affected by workers’ compensation costs. Workers compensation insurance covers;

  • Any and all medical bills relating to the injury, including emergency room costs, ambulance, hospital stay, if necessary, and treatment for the injury
  • Temporary disability will cover any lost wages while your worker is unable to perform their tasks
  • Permanent disability if the injury is serious enough that the worker loses function
  • Job displacement benefits are used when an injured worker cannot return to work in their condition

According to the National Federation of Independent Businesses, 33% of small business owners identified workers’ compensation insurance as their biggest concern.

  • Rates range from 5% to 40% of payroll
  • Average premiums are steadily increasing while coverage decreases, putting a more challenging strain on businesses
  • Currently, it is the fastest-growing expense across varying industries

How Can Your Business Protect Itself?

Here are five ways to help reduce workers’ compensation;

  • Safety should be your biggest priority:
    • Develop a safety control program and put it in writing
    • Incorporate a disciplinary program into the safety program to hold negligent employees accountable for not following safety protocols
    • Hold regular meetings with staff members to keep the safety dialogue open
  • Immediate response to claims:
    • If an accident happens, take immediate action. Take pictures, write statements, be as detailed as possible
    • Drug test employee and start doing random drug testing
  • Fraud happens. Protect yourself
    • If you suspect fraud, contact Sacks & Zolonz, LLP immediately and your insurance company
    • Review your current workers’ compensation policy for accuracy and make sure your employee isn’t a repeat offender
    • Check your experience modification factors and ensure they are accurate. 27% of insurance ratios are incorrect
    • Double-check the deductible
  • PEO: Professional Employer Organization:
    • An outsourced PEO can reduce premiums, give safety and loss control expertise, and usually has nationwide coverage and professional payroll processing and tax filing
  • Accurate Incident Reporting
    • Details are vital in reporting the accident
    • Make sure there is communication for all managers
    • Track the return-to-work process

Employers know accidents will happen, but effective safety measures can reduce injures, and accurate and efficient involvement can help you spot a fraudulent claim.

We’re Here For California Employers

Our workers’ compensation defense attorneys in Los Angeles, California are will skillfully represent you during this stressful time. At Sacks & Zolonz, LLP, we understand the value of your business and will fight to protect your rights. Contact us for a consultation of your case by clicking here or calling 310-216-7778.

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