In industries like construction, injuries will transpire. Although employers do their best to implement a successful safety management plan, it’s also important to have an effective workers’ compensation claims management system in place. When you fail to comply with Florida state laws that require a workers’ compensation plan, this can lead to a significant fine and a stop-work order in Florida.
In this two-part article, we are discussing many of the mistakes employers do not want to make related to workers’ compensation coverage. In the first part, we discussed two common gaffes by employers: when they do not have an accurate payroll estimation in place and when they fail to obtain proof of insurance from subcontractors. In this section, a stop-work order attorney in Florida will discuss employers who do not closely manage their workers’ compensation claims.
More Than an Expense
Here are some ways that employers negatively impact their business by failing to properly manage their workers’ compensation premium:
- Failure to Report an Accident: In Florida, an employer has seven days to report an injury. If an employer fails to report an injury to their insurance company, this can lead to a stop-work order being issued along with excessive fines. When an accident transpires at the workplace, the employer’s first step should be to report the injury as soon as possible to their insurance company.
- Lack of Investigation: Regardless of the severity of an injury, employers that fail to identify the hazards or shortcomings of their operations will likely fail to implement corrective actions that will prevent similar injuries from transpiring in the future (resulting in raised premiums). Every workplace injury requires an investigation. This not only helps prevent similar mishaps from occurring, but it also improves workplace morale. At the conclusion of your investigation, you should determine whether or not safety rules were followed and whether or not the safety training onsite was sufficient.
- Failure to Communicate: When an injury befalls the workplace, an employer that fails to regularly communicate with either their insurance adjustor or their injured worker will face increased expenses. With a worker out, the employer should be motivated to close the claim quickly by working with both parties through the claims process. This includes creating a return to work program for the injured worker that eases them back into the workplace. This also improves morale and reduces the total cost of their workers’ compensation claim.
Employers will find that when they do not look at their workers’ compensation coverage as simply another expense, and rather as an investment, they can reduce costs and create an effective system that gets their employers back in the workplace more quickly.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.