Business owners are frequently unaware of all of the costs associated with a work-related injury. For example, a waitress at a restaurant slips and falls; medical expenses are incurred for a leg injury, and indemnity payments are needed for her two-week absence from the job. Translation? A deteriorating loss history that could increase the price paid for Workers’ Compensation insurance.
In addition, indirect costs associated with that injury can include:
- A slowdown in service/sales during and immediately following the accident.
- A disruption in operations during an investigation.
- Increased wages for unscheduled overtime to make up for the absence of an employee.
- The hiring and training of new/temporary replacement staff.
- Greater possibility of litigation.
- Increased potential for malingering and fraud.
- Loss of employee morale, sense of security, and loyalty to the company.
- Higher risk of employee turnover.
Clearly, the impact of a simple slip and fall upon the productivity and profitability of a client’s operation can be substantial, and selection of the right Workers’ Compensation insurer can help control these kinds of exposures.