What HR Needs to Know About Workers’ Compensation Insurance

By hrlineup | 25.11.2020

In diverse workspaces, employees will do both intellectual and physical jobs. With this comes some risk, where it is possible to get injured within the workplace. To protect employees, employers need to offer workers’ compensation insurance. This can save them from facing massive financial ramifications if an employee gets hurt or picks up an illness while in the workplace.

What is included in Workers Compensation Insurance?

The main benefit of workers compensation insurance is helping employees with medical benefits in the event of illness or injury while at work. In addition, it can also assist employees with wage compensation if the injury or illness limits them from being able to work for some time.

For the employer, workers compensation insurance offers some protection in the event that an employee chooses to sue the company. This insurance can be used to cater for the legal fees.

What is the Role of HR Department in Compensation Management?

The human resources role in workers’ compensation includes fully understanding procedures and policies, legalities, and the process of making claims. Other responsibilities include: –

  • Selecting the insurance provider that best meets the needs of the business.
  • Taking quick action to implement workman compensation policies when necessary
  • Ensuring that employee needs are fully met to avoid lawsuits
  • Going through all the steps of the claims process
  • Executing the workers’ compensation claim

Managing Workers Compensation

 To manage workers compensation, HR officers need to pay attention to detail and keep excellent records. This ensures that they follow through with the employee every step of the way from the initial report, treatment, as well as ensuring the insurance company fulfils its obligations. Information that needs to be captured includes: –

  • The type of injury or illness
  • The part of the body that has been affected
  • The date, location, and time that the injury occurred
  • Full details of the employees involved
  • A clear statement of how the injury took place
  • Documentation indicating medical treatment received

Once all this information is brought together, HR managers need to file an incident report and use it to make an insurance claim. Where required, it is the team from the HR office who carry out investigations and interviews so that they abode by the regulations of the policy.

Through managing workers compensation, it becomes easier for HR officers to identify gaps. With knowledge of these gaps, it is possible to review the policies and correct them, as necessary. Furthermore, the HR officers need to consider the aspect of law with workers compensation. The two main laws are the Family and Medical Leave Act, as well as the American Disability Act.

It is the responsibility of the HR team to take the necessary preventative steps making sure that the work environments are safe. This also includes consistent education of employees so that in the event of any workplace accident, they know what needs to be done.

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