Workers’ compensation insurance protects both employers and employees when an employee is injured on the job. While many states allow businesses to self-insure workers’ compensation claims, the risks of doing so often outweigh the benefits.

In this blog, we’ll discuss what workers’ compensation is and why businesses need to handle these claims correctly. We’ll explore the pros and cons of self-insuring workers’ compensation or outsourcing your workers’ comp efforts to an experienced team.

Workers’ Compensation: A Quick Overview

Workers’ compensation is a form of insurance. When an employee is injured on the job or develops an occupational illness, workers’ compensation provides benefits to help pay for medical care and support an injured employee needs until they can work again. Some states also require workers’ compensation to provide vocational rehabilitation benefits or death benefits to families if a workplace injury proves fatal.

In exchange for this no-fault coverage, employees give up the right to sue their employer after an injury. The insurance handles the costs, and both employer and employee can focus on addressing their immediate needs.

Why You Need to Handle Workers’ Comp Claims Correctly

Every state provides a process by which injured workers can challenge workers’ compensation denials, address perceived shortfalls in benefits, or otherwise file grievances if they believe their workers’ comp claim is not being handled according to law. For employers, the costs of losing such a claim can be steep – not only in fines or penalties but also in the loss of confidence or turnover associated with workers’ loss of trust in the employer.

Should You Self-Insure?

Many states allow employers to self-insure workers’ compensation claims instead of purchasing coverage. Self-insurance, however, is often expensive. It also imposes significant administrative burdens on an employer when an injury does occur. If the claim is handled incorrectly, the employer bears the full brunt of any legal or regulatory repercussions.


Need help meeting your workers’ compensation obligations efficiently?

Get in touch with our team at Odell Studner. We can help you find coverage, handle claims, and meet regulatory demands, so you can focus on growing your business. Let Odell Studner assist with all of your Workers’ Comp claims today!