Thereâs no doubt that the costs related to workersâ compensation claims are a universal concern for business owners. Gauging the financial impact of workersâ 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 workersâ compensation claims. Understanding the relationship between voluntary accident and disability insurance, and workersâ compensation can help small-business employers weigh the potential positive financial effects of making these types of products available to employees.
The Aflac Workersâ Compensation Report asked companies whether theyâd experienced fewer workersâ 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 workersâ compensation claims.
In addition to asking employers if they could confirm declines in workersâ compensation claims, the survey assessed the significance of those declines. Â Hereâs 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.
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 workersâ compensation claims.
Additionally, voluntary insurance coverage is available at no additional cost to the company while boosting employersâ benefits offerings.
Accident Photo via Shutterstock