Question

BIS 127

Many employers dislike workers’ compensation claims. Some even actively discourage employees from filing them. Why? How does worker's comp claim affect an employer? Why do employers contest worker's comp when employees' file claims?

Answer 1

Answer 1:

On-the-job injuries gives right to employee to sue his employer for negligence. In order to avoid such case employers provide insurance to employees that that gives medical benefits and wage replacement to injured employees. These wage replacement and benefits are covered under workers’ compensation claims.

However, Many employers dislike workers’ compensation claims and Some even actively discourage employees from filing them. The main reason behind this is that employers tend to save money of premiums of workers compensation claims. Because the rate of insurance will be higher if more injuries are reported from the employer. Therefore, to save their money and keep premium on insurance low, many employers discourage employee for filing workers’ compensation claims.

Answer 2:

Workers compensation claims effect employers in following ways:

• Employer has to suffer loss of work and still pay wages to injured employees,
• Employer has to pay premium for insurance claims.
• The more the injuries reported, the higher will be the rate of insurance.
• Such claims also question employers reputation and highlight employers negligence.

The bottom line is employer has to suffer loss of money and reputation.

Employers contest workers compensation when employees file claims for two major reasons:

• To save cost that the employer has to suffer for paying the claims,
• To save reputation of employer by avoiding the claim that work place injury took place because of employers negligence.