How to Reduce Workers’ Compensation Claims

February 26th, 2020 Post By :

Providing greater access to voluntary benefits for off-the-job injuries helps commercial employers mitigate exposure to workers’ compensation claims and realize additional gains. Voluntary benefits are the easiest and most cost-effective way for employers to offer employees valuable benefits. Both the employees’ and the company’s health and well-being are protected with little to no company costs.

Understanding how voluntary benefits function as more than a benefit of employment, commercial business owners can create offerings to protect their bottom line as well as their employees’ health. Educating employees on how the accident plan pays them cash in the event of an accident is paramount to the successful implementation of this risk redirection strategy. 

Voluntary Benefits

Affordable, portable, and personalized, voluntary benefits are insurance solutions offered through an employer but are paid partially or solely by employees based on the employer’s preference.

Common voluntary benefits include insurance coverage for vision, dental, accident, home and auto, and non-insurance coverage such as identity theft protection, pre-paid legal services, purchasing programs, and student loan repayment.

As an employer, programs feature simple administration and enrollment, backed by long-term pricing and low participation requirements.

Flexible and value-added features of variable benefits for employees include:

  • Voluntary and customizable participation
  • Payroll deductions for policy costs.
  • Direct cash benefits for covered claims.
  • Guaranteed coverage without required health questions


Enhancing existing benefit packages by offering voluntary coverages is a win-win for both employers and employees. The cost and time conveniences related to pursuing voluntary claims compared to navigating the workers’ compensation system are driving factors in these savings.

Employees with voluntary accident coverage are more likely to receive immediate treatment. This minimizes the risk of a more serious injury occurring on the job or being reported as job-related. Voluntary characters streamline the claims process which makes it simpler than the workers’ compensation system. Employees will be paid more quickly, more off-the-job injury claims are submitted appropriately. This will save employers unnecessary workers’ compensation costs.

Consider the following scenario. A fall from a ladder over the weekend at home goes untreated because the employee doesn’t have insurance. Instead, he waits to report his injury on Monday as an at-work incident in order to utilize medical benefits provided through workers’ compensation.

This deceitful claim unfairly results in workers’ compensation claims, costing the employer time and money in handling the claims and the resulting loss of productivity.

In addition to reducing workers’ compensation claims, instituting a well-rounded and well-promoted voluntary benefits package will help employers by:

  • Sharpening your competitive edge when attracting, engaging, and retaining top-notch employees.
  • Encouraging a healthier workforce thereby reducing employee absenteeism and increasing productivity

Employees will find cost-saving and other advantages when utilizing voluntary benefits over workers’ compensation claims in the form of:

  • Easier claims filing
  • Less claim scrutiny
  • Faster Payments
  • Added level of personal privacy
  • Peace of Mind

Creating or enhancing your voluntary benefits program is simple with Cumbre Insurance. Our team will help you design, plan offerings, communicate the program and its advantages to your workforce, and then facilitate the enrollment process.

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