Is it Bad to File a Workers’ Compensation Claim?

Workers’ compensation is more than just a legal requirement for Louisiana businesses. It’s an investment that promises to protect both employers and employees by promoting workplace safety and ensuring that employees are taken care of in the event of a workplace injury.

‍

Accidents may not always be preventable, but with a good workers’ compensation policy, their negative impact can be greatly reduced.

‍

Despite the overwhelming positives that workers’ compensation coverage brings to both businesses and employees, some employers may still have reservations or uncertainties about submitting a claim and the potential consequences it could have on their business or workers. Among the most common concerns associated with workers’ comp claims are the following:‍

‍

‍

Impact of a Workers’ Comp Claim on Company Culture‍

‍

An initial concern that many businessowners face when considering how to handle a workplace injury or illness is the potential impact on company culture. While the incident itself may be negative, employers have an opportunity to shine a positive light on their organization and boost employee confidence by handling such situations promptly and with great care. When employees feel cared for they are more comfortable raising concerns and providing feedback, which can not only lead to improvements and risk reduction in the workplace, but also happier, more productive employees.

‍

“Speaking from the perspective of the injured worker, the quicker you get them the appropriate care, the better off they will be in terms of outcome, their work, and their ability to return to a meaningful life,” notes Paul Buffone, LWCC SVP and Chief Claims Officer. “And people want to feel like their employer will take care of them if ever injured on the job.”

‍

Impact of a Workers’ Comp Claim on a Business’ Reputation

‍

Workplace accidents happen every day. In fact, according to a report by the National Academy of Social Insurance (NASI), approximately 33% of all employers in the United States reported having a workers' compensation claim in 2018. The year before that, the rate was reported at 30%. In high-risk industries, the numbers can be even higher.

‍

While businesses naturally want to avoid accidents and keep their employees safe, some incidents can still occur. When they do, the greatest reflection on the company comes not from the accident itself but from how it is handled by the employer. A reputation for taking care of injured workers swiftly and thoroughly is one that any business should hope to achieve.

‍

‍

Legal Impact of a Workers’ Comp Claim

‍

In Louisiana, an employee must report a work-related injury or illness to their employer within 30 days of the incident or within 30 days of when the injury or illness was discovered. The employer is then required to file a claim with their workers' compensation insurance carrier.

‍

“We quickly investigate and accept most claims and provide the medical care and services people need to recover.” says Paul.

‍

While some may believe that opening a workers’ comp claim opens them up to the possibility of litigation, the opposite is actually true. If an employer is aware of a work-related injury or illness and does not file a workers’ comp claim or does not file in a timely manner, the risk of legal action on the part of the employee increases significantly.

‍

Monetary Impact of a Workers’ Comp Claim

‍

The potential monetary impact of a workers’ comp claim often goes hand-in-hand with litigation. While it is possible for claims to affect the cost of insurance, the greater cost is when lawsuits come into play.

‍

According to a study by the National Council on Compensation Insurance (NCCI), the average cost of a workers' compensation claim that goes into litigation is approximately $41,000, compared to an average cost of $13,000 for claims that do not go into litigation. This represents a three-fold increase in the cost of the claim.

‍

Another study by the Workers Compensation Research Institute (WCRI) found that the cost of a workers' compensation claim that goes into litigation can be up to 4.5 times higher than the cost of a claim that does not go into litigation. The study also found that the length of time it takes to resolve a claim increases when litigation is involved, which can further increase the overall cost of the claim.

‍

LWCC Claims Operations VP, Jill Leonard, explains, “Claims that are reported late go into litigation far more often than those that are reported in a timely manner. We encourage all policyholders to get their claims to us quickly so that we can take care of their people. That’s what we’re here for.”

‍

‍

Your Partner in Louisiana Workers’ Compensation

‍

At LWCC, our Claims Department focuses on the needs and well-being of injured workers throughout the claims process. We emphasize the importance of providing injured workers with timely and appropriate medical care, rehabilitation services, and other necessary support. By putting the injured worker at the center of the process, we aim to improve outcomes for both workers and employers by reducing duration and cost of claims and promoting a faster return to work. Additionally, we recognize the important role of communication, collaboration, and transparency between all parties involved in the process.

‍

“When people are injured at work, they lose their independence, way of life, and ability to support their family. Here, we have the privilege of helping injured workers recover during the most vulnerable times of their lives,” says Paul.

‍

We understand the devastation that a workplace accident can cause for both employees and employers, and our dedicated team is here to help minimize the impact of those incidents. Should a workplace injury or illness occur, we encourage our policyholders to quickly submit claims. And we’ll take care of the rest!

‍