There’s no doubt that the costs related to workers’ compensation claims are a universal concern for business owners. Gauging the financial impact of workers’ compensation claims can be burdensome and challenging in limiting those costs.
One of the challenges employers grapple with is assessing the real costs associated to absenteeism, productivity and the bottom line when faced with workers’ compensation claims. Understanding the relationship between voluntary accident and disability insurance, and workers’ compensation can help small-business employers weigh the potential positive financial effects of making these types of products available to employees.
The Aflac Workers’ Compensation Report asked companies whether they’d experienced fewer workers’ compensation claims as a result of offering voluntary accident or disability insurance as part of their benefits packages. The report found that 34 percent of small companies that provide access to accident insurance and 43 percent of small employers that provide access to disability insurance reported declines in workers’ compensation claims.
In addition to asking employers if they could confirm declines in workers’ compensation claims, the survey assessed the significance of those declines. Here’s what participants had to say:
- 15 percent of small businesses that offered accident insurance reported reductions of 50 percent or more, while 9 percent reported declines of 25 to 49 percent.
- 18 percent of small employers that offered disability insurance reported declines of 50 percent or more, while 17 percent reported declines of 25 to 49 percent.
Potential Savings for Employers
What do these findings mean for small businesses?
By making voluntary accident or disability insurance available to workers, small companies can often decrease the frequency and expense of their workers’ compensation claims.
Additionally, voluntary insurance coverage is available at no additional cost to the company while boosting employers’ benefits offerings.
Accident Photo via Shutterstock