How Companies Can Reduce Workplace Injury Claims and Costs

Reducing workplace injury claims and costs requires a proactive, multi-faceted approach that combines safety training, technology, ergonomic improvements, and effective claims management.

Workplace injuries are a significant business concern, leading to higher workers’ compensation premiums, lost productivity, legal liabilities, and reputational damage. The U.S. Bureau of Labor Statistics (BLS) reported 2.6 million nonfatal workplace injuries in 2021. 

However, businesses can take proactive measures to minimize injuries, reduce claim costs, and create a safer work environment. This article outlines key strategies you can implement to minimize workplace injury claims and associated costs.

1. Invest in Comprehensive Safety Training

A well-trained workforce is less likely to suffer injuries, and businesses prioritizing safety training see fewer claims and lower costs. Some practices you can implement include:

• OSHA-compliant training: Ensure all employees receive Occupational Safety and Health Administration (OSHA) training relevant to their industry.
• Hazard communication training: Under the OSHA Hazard Communication Standard (29 CFR 1910.1200), employers must train workers about hazardous chemicals in the workplace.
• Job-specific training: Provide specialized training for high-risk tasks (e.g., working at heights, operating heavy machinery, handling hazardous materials).
• Emergency preparedness: Conduct fire drills, active shooter training, and first aid/CPR training to prepare employees for emergencies.
• Refresher courses: Regularly update training to reflect new safety regulations and workplace changes.

2. Address Occupational Illnesses and Long-Term Health Risks

Some workplace hazards, such as asbestos exposure, can lead to long-term health issues, including mesothelioma, asbestosis, and lung cancer. This is a particular concern for military veterans, as asbestos was widely used in Navy ships, barracks, aircraft, and military vehicles for insulation and fireproofing. Veterans who worked in shipyards, engine rooms, construction, and vehicle maintenance faced especially high exposure risks. To minimize asbestos-related health risks, businesses must:

• Identify and safely remove asbestos in aging buildings, machinery, and equipment.
• Provide protective gear and training for workers who may come into contact with asbestos-containing materials.
• Comply with OSHA and EPA asbestos regulations to prevent exposure in the workplace.

For veterans already diagnosed with asbestos-related diseases, VA benefits, and Asbestos Trust Funds may provide financial support. Veterans can file for VA disability compensation, healthcare benefits, and legal claims to seek compensation for medical expenses and lost wages. Raising awareness about these options ensures that affected employees and veterans receive the assistance they deserve.

3. Implement a Strong Workplace Safety Program

A structured workplace safety program helps prevent injuries and reduces workers’ compensation claims. Regular safety inspections and risk assessments should be conducted to identify hazards before they cause accidents. Establish detailed written safety protocols and ensure all employees understand them. Additionally, encourage hazard reporting by creating a non-punitive system for employees to report safety concerns. You must also regularly inspect and replace PPE (personal protective equipment), fire extinguishers, and first aid kits.

4. Use Technology to Enhance Safety

Advancements in workplace safety technology help reduce accidents and ensure compliance with safety regulations. AI-powered cameras can detect unsafe behaviors (not wearing PPE or using improper lifting techniques) and alert supervisors. Wearable technology, like smart sensors in helmets, vests, or wristbands, can help monitor worker fatigue, posture, and exposure to hazardous conditions. You can also use automated machinery; let it handle all dangerous tasks to reduce the risk of injuries.

5. Improve Workplace Ergonomics

   

Poor workplace ergonomics can lead to musculoskeletal disorders (MSDs), repetitive strain injuries, and chronic pain, which often result in costly workers’ compensation claims. You must put the necessary measures in place to make your workplace more comfortable and user-friendly. You can implement the following:

• Adjustable workstations: Provide sit-stand desks and ergonomic chairs to reduce strain.
• Proper lifting techniques: Train employees to lift safely and use mechanical lifting aids when handling heavy objects.
• Frequent breaks: Encourage micro-breaks to prevent fatigue and injuries related to prolonged repetitive tasks.

6. Offer Incentives for Safe Practices

Rewarding employees for safe behaviors and compliance with safety protocols fosters a safety-first culture. Effective incentive programs include safety bonuses for accident-free periods, recognition programs to highlight employees who promote workplace safety, and gamification strategies like quizzes and contests to make safety training engaging.

However, ensuring these incentives encourage proactive safety measures rather than discourage injury reporting is crucial. You must be careful not to initiate programs that could lead employees to hide incidents. Instead, focus on positive reinforcement, such as rewarding hazard identification, safety suggestions, and participation in training, to create a workplace where safety is valued and consistently practiced.

Endnote

Reducing workplace injury claims and costs requires a proactive, multi-faceted approach that combines safety training, technology, ergonomic improvements, and effective claims management. By implementing these strategies, businesses can protect employees, lower expenses, and maintain compliance with workplace safety regulations.