How to Effectively Manage Workers’ Compensation Claims
According to statistics from the HSE (Health and Safety Executive), over a million workers are injured or made ill by their work every year in Great Britain. The total cost of workplace injuries and ill-health was £15.0 billion in the year 2017/18. Any business that fails to implement an effective process for managing workers’ compensation claims is taking a risky gamble that could cost them a substantial sum of money.
In this guide, we’ll take a look at how employers can protect their business and effectively manage employee compensation claims.
What Are Workers’ Compensation Claims?
If a worker is injured because of an accident at work, they may be entitled to make a claim against their employer for personal injury compensation. Likewise, if an employee suffers from a work-related illness such as carpal tunnel syndrome or extreme stress, they could have a case against their employer.
To be eligible to make a claim, the worker must show their employer was at fault. For example, an employee injured through improper use of machinery could claim if they can prove that a company failed to provide adequate health and safety training.
Does My Business Need a Compensation Claims Management System?
Some workplaces are inherently hazardous, such as construction sites and chemical plants. However, all businesses — even those operating in an overtly “safe” industry — must have an effective employee compensation system in place. Employees can claim for a wide range of health issues, from serious physical injury to work-related stress and depression. Consequently, no business is immune to receiving an employee compensation claim.
How to Effectively Manage Employee Compensation Claims
An effective claims management system can save a business time and money while also helping the affected worker to return to work more quickly. Employers who ensure procedures are in place to manage and report any harm sustained at work are best placed to handle any compensation claims subsequently filed.
- Complete a Risk Assessment. An employee is less likely to have grounds for claiming compensation if the business can show it has identified workplace hazards and taken reasonable steps to prevent any harm occurring. This can be achieved by completing a risk assessment and implementing appropriate safety measures.
- Implement an Injury-Reporting Process. Every workplace — regardless of the degree of hazard present — should have a policy for the reporting of injuries that occur on-site. This policy should be circulated to all employees and shared with new recruits during the onboarding process.
The injury reporting plan should include a clear step-by-step process for employees to follow, should an accident occur at work.
- Manage Injuries Effectively. Every business should have a plan of action for if an employee or visitor is injured on-site. This plan will include having qualified first-aiders available and informing all staff who these individuals are. It’s a good idea to compile a list of contacts for medical emergencies, such as the local hospital. Return-to-work programmes should also receive due consideration. These programmes should ensure reasonable accommodations support the injured or unwell employee when they return from sick leave.
If an injury occurs, take photographs of the scene, speak to witnesses and report the incident to your insurance company.
- Establish a Claims Management Process. An employee who claims for compensation is likely to do so via their solicitor. Establish a policy for managing compensation claims and ensure sufficient processes and procedures are in place to avoid unnecessary costs or delays.
Claims management software can automate key processes, reducing the cost of human resources required to manage a claim and increasing the accuracy of data entry. Software designed specifically for handling claims can also expedite the process of filing a new claim and gathering the necessary information. Additionally, this confidential data will be held securely in the system, ensuring that the business remains compliant with data protection regulations.
- Implement an Accident Investigation Process. Regardless of any ongoing legal procedures and external investigations of the incident in question, a business should conduct its own accident investigation. This investigation will help to identify any potentially hazardous working practices or equipment to address to prevent accidents or illness occurring in the future. Investigations can also help a business to identify fraudulent claims. An accident investigation process typically includes the gathering of statements from the affected employee and any witnesses as well as an internal review of workplace policies, practices and documentation.
The law imposes a time limit for submitting a personal injury claim. This limit differs depending on the type of claim. Negligence is the most common claim and the time limit for this is three years.
Consequences of Poor Claims Management
A business with no system for managing workers compensation claims — or an ineffectual one — is likely to pay the price. Successful personal injury claims can cost a business thousands of pounds. Furthermore, where a company handles a claim for personal injury poorly, its reputation can be irreparably damaged, making it difficult to attract top talent and new customers.
How Can Claims Management Software Help?
LogiClaim advanced claims handling software can transform the way you manage and process claims. Whether your business is a hotel, a vehicle hire scheme or a holiday company, our powerful and flexible software can save you time and money.
- Automate key processes and drastically reduce the human resources required to handle a claim successfully while increasing the accuracy of data entry.
- Take advantage of self-serve options to significantly reduce staff costs and improve the claimant’s experience.
- Use configurable questionnaires that ask claimants the right questions to elicit the information required.
- Customise the workflows and the document library to meet the specific needs of your business.
- Use advanced features such as “intelligent workflow” to automatically drive claims forwards based on historical events or current status.
- Store, manage and retrieve documents efficiently and ensure confidential data is protected.
Logican has been providing efficiency-enhancing software solutions for businesses since 2005. We provide out-of-the-box solutions, expert consultancy and industry know-how. To find out how we can help your business implement a robust claims management system, book a free 15-minute consultation today.