For those of us who work in staffing for the manufacturing industry, safety initiatives and worker’s comp insurance are of paramount concern. Why? What is the big deal about worker’s compensation?
Worker’s compensation is a type of insurance that most businesses are required to carry that protects the interests of both the organization and the employee. Basically, if an employee is injured at work, worker’s comp insurance will cover his/her medical bills and some lost time and wages. In addition, having worker’s comp insurance helps protect businesses from injured employees seeking litigation against their employer.
However, that’s not the whole story with worker’s comp. Ensuring a safe working environment is smart for everyone involved. Yes, it may be more costly for businesses to run a safe workplace, keeping machines in good working order, keeping liquids off the floor, continually running safety trainings, and the like. But the flipside can be an environment unfit for people to work in, with extreme noise, heat, or chemicals, machines without guards surrounding moving parts, or trip hazards all over. An unsafe environment is a perfect breeding ground for accidents to happen… and accidents aren’t cheap.
Worker’s compensation claims can be as simple as a single stitch on a laceration to losing a limb or even a fatality. Not only are injuries like these harmful to the employees, they can be extraordinarily costly for a business. Just like any other insurance, the more claims you submit, the higher your premium costs will be. With enough claims, insurance coverage can be cancelled entirely… and then you can no longer run a business at all!
What’s the moral of the story? Ensure that every client you partner with has a safe work environment, and is committed to safety in the workplace. Safer work sites mean happier employees, a reduced number of injuries, and overall lower the cost of doing business, which increases profits. It just makes good business sense!