Workers' Comp: Are you prepared for the worst?

In even the “safest” of industries, workers’ comp costs can take a big bite out of your budget.

For workers’ comp, most states have a “no fault” policy — no matter what caused the injury.

In essence, no fault says that if your employees are hurt on the job — even if it’s because of their own stupid or reckless behavior (i.e., photocopying certain parts of their anatomy) — workers’ comp will cover it.

Safety training, programs promoting safe work habits, workshops and seminars that deal with industry-specific safety issues all help to foster a safer workplace.

Another important area: Making sure all employees are classified under the proper industry classification codes (over 600 codes identifying occupations with the highest risk of on-the-job injury).

Two common mistakes many companies make when it comes to classifying workers:

• Classifying all employees under a single code. Even the smallest or most basic businesses usually employ more than one type of worker.
• Coding all administrative personnel as office clerks. A data-entry clerk who types on a keyboard all day carries a high risk of carpal tunnel syndrome and shouldn’t be classified in the same way as, say, a filing clerk or receptionist.

There are many types of classifications, which correspond to varying levels of risk. To ensure staffers are classified the right way, check your state’s classification code book.