Potential Impacts an Employee Injury Claim Can Have on Your Business
Your business is required by law to uphold stringent employee health and safety standards, while the condition of the working environment is equally as important. However, it is not uncommon at all for business owners to meet and maintain ideal standards while still encountering employee injury claims. The U.S. Bureau of Labour has reported a staggering 2.9 million workplace injuries in private industry businesses, suggesting that employers and employees alike need to enhance health and safety measures.
Essentially, your business should be protected by the beneficial guidance of a legal practitioner to navigate instances where employee injury claims may be unjust. In addition to this, a lawyer will also benefit the process of settling just injury claims in an amicable and legally precise manner. If you are not too sure what to expect from an employee injury claim, here is how the scenario will impact your business.
Indirect Costs of an Injury Claim
The indirect costs associated with an employee injury claim can be as much as ten times higher than the relevant direct costs of the claim. Merely settling the lawsuit by offering compensation and other details will not be the end of the expenses for your business. Unfortunately, whether your employee has been in a car accident with a work vehicle or they have fallen from a ladder in the workplace, your business will be losing a valuable asset indefinitely, depending on the specifics and severity of the injuries sustained.
Just a few of the substantial indirect costs you should expect will include loss of productivity, compensation of replacement worker, training costs of compensation worker, and even the extra time-consuming paperwork and admin details that will be relevant.
Direct Costs That Can Interrupt Business
You may not have considered the indirect costs and extras of a workplace injury claim, although you may undervalue the potentially high direct costs. Depending on the specifics of the injury as well as the severity, direct costs include compensation, legal services, medical compensation, incident investigation, and others. When it comes to minimizing the impacts and financial costs of an injury claim, you will need to work closely with your lawyer while remaining respectful towards the affected employee.
You may not be able to eliminate the costs and impacts of an existing claim. However, you can best protect your business with liability insurance policies that are designed to assist with the costs of such unfortunate circumstances. While legal representation will be essential, it is imperative to purchase insurance policies that will reduce the risk of employee and public liabilities.
Preventative Measures to Implement
In some cases, it is hardly possible to avoid injuries, primarily if your business is operating in riskier industries such as construction and others. However, you can protect the financial future of your business as well as your employees by implementing health and safety training. If your employees are all well-informed and conscious of the risks and dangers in the workplace, potential injuries will be minimized effectively.
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