An excess of workers’ compensation claims is a problem for both employees and business owners. If too many employees file workers comp claims, the business will face myriad repercussions.

Below, Hamilton Fox & Company, details the consequences of an influx of workers’ compensation claims for Pinecrest, FL businesses.

Excessive Workers’ Compensation Claims 

If you own or manage a business in the greater Pinecrest, FL area, an onslaught of employees filing workers’ compensation claims is a sign of trouble. Those claims might indicate your company’s working conditions are unsafe. 

The excess claims might also indicate employees are attempting to game the system. Though you can put up a legal battle against such claims, some will inevitably be approved.

If too many workers’ compensation claims are approved, your business insurance rates will increase. The logic in hiking the rates reflects the heightened danger of the workplace. Higher premiums make it challenging to make payroll and keep your company’s doors open.

Other Potential Ramifications

Aside from higher premiums, the business might also face an exodus of workers, suffer a diminished reputation within the community and worse. If word spreads that the workplace is inherently dangerous or if employees can take advantage of the supposed risk, prospective hires will demand higher wages.

Moreover, if injured employees have accumulated significant benefits such as paid time off of work, the business might be forced to pay those benefits. It will also cost money to fortify the worksite for enhanced safety.

The Occupational Safety and Health Administration (OHSA) also has the potential to fine your business for failing to adhere to safety regulations.

Hamilton Fox & Company Inc. is at Your Service

Serving Pinecrest, FL, Hamilton Fox & Company Inc. has your insurance needs covered. Dial 800-263-1947 to speak with one of our friendly insurance professionals today.