Call Us Today For A Free Quote | 925.737.1560
JSW Insurance Associates Providing you the protection you deserve


Between slips, falls, strains and equipment accidents, employers pay a lot of money. Having a good workers' compensation insurance policy helps. Still, costs can skyrocket if you aren’t prepared for accidents. To be safe, you’ll need to understand the ins and outs of workers' compensation insurance itself.

You might have a safe workplace. You might have safe workplace rules and regulations, too. If you don’t know the hidden factor driving most costs, however, you won’t be as prepared as you should be. At the end of the day, a claim’s driving cost factor isn’t injury. It’s time.

Why Occupational Injuries Get Expensive

A workers' compensation claim’s driving expenses are generally straightforward: medical costs. They also include indemnity—or wage replacement payments. An insurance company will cover some of all these costs. Still, these dollar amounts factor into your plan’s modifications.

Occupational injuries trigger an employer’s workers 'compensation policy. While the above-mentioned direct costs can be easy to gauge, indirect expenses exist.

Major Indirect Costs

A study conducted by the Stanford University Department of Civil Engineering measured these indirect costs. Their findings: Indirect costs, in most cases, exceed direct costs. A broken bone in the workplace might hit a business $50,000 in direct costs. Still, a hidden $55,000 expense might be waiting around the corner.

Major indirect costs include:

  • Wages paid to absent employees.
  • Wage costs related to an injury’s resulting work stoppage.
  • Lost productivity due to administrators handling the claim.
  • Lost workplace productivity due to rescheduling.
  • Equipment repairs and replacement due to the claim.

The Impact of Time

It’s easy to see why time costs the most money. While your business handles the main costs of a workers' compensation insurance claim, it might struggle with the claim’s aftermath. Even worse: Your workers' compensation insurance policy may not cover these costs.

Overcoming the Time Cost Factor

While few things can pay for claim’s every expense, you can still work to reduce their severity. Treat your workers' comp insurance as a finance tool, rather than a fix-all policy.

The only way to lower claim costs is to reduce the number of claims themselves. Once you’ve done everything possible to cut the chance of a claim, pursue the next goal: claim severity reduction.

Severe injuries take a lot of time to heal. In many cases, severely injured employees never return to work. Make sure you have a good workers' compensation policy. It'll prove instrumental in someone's recovery. But, don’t forget about your business’s foundation: its people. They're the ones you should look out for first.

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
Instant Quote
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
Trade Associations
JSW Insurance is proud to be a member of several important associations.
From Our Blog From Our Customers
Read More Read More
Facebook Twitter LinkedIn Google Maps RSS Blog Feed YouTube
Stay In Touch With Us Helpful Site Links Contact JSW Insurance
Sign up now to receive news and updates Main Office
7567 Amador Valley Blvd Suite 211
Dublin, CA 94568
Phone: 925.737.1560
Fax: 925.737.1567

Mailing Address
P.O. Box 2516
Dublin, CA 94568 
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder