In recent years, the indemnity portion of workers’ compensation claims—lost work time due to a work-related injury—has had a more significant impact on insurance premiums than medical expenses. While medical costs are generally non-negotiable, employers have some flexibility in managing indemnity claims to help control premium costs.
The Benefit of Early Return-to-Work Programs
When an employee is injured, the usual response is to allow workers’ compensation insurance to cover lost work time. However, bringing the employee back to work, even in a light-duty capacity, can save your organization considerable costs. Once a doctor has cleared the employee for light duty, you, as the employer, can decide whether to continue covering lost time through workers’ compensation or to reintegrate the employee into the workforce sooner. Opting for early return to work reduces the indemnity portion of the claim and lowers the impact on your workers’ comp insurance premium and experience modification rate.
Identifying Suitable Light-Duty Roles
One key question to ask when considering an early return-to-work strategy is: What will the employee do if they are not fully able to perform their normal duties? Temporary, light-duty roles—such as administrative tasks—are an effective way to reintegrate employees and help them maintain engagement. This approach has been shown to aid in the recovery process as employees become motivated to resume their original job responsibilities sooner.
Take Control of Your Workers’ Compensation Costs
Returning employees to light duty sooner can be an effective, cost-saving strategy for managing workers’ compensation claims. If you want to explore this approach or have questions on commercial insurance or risk and safety management, feel free to reach out.
