Workers’ Comp Claims: Common Mistakes and How to Avoid Them

 

Workers’ Comp Claims in California: Common Mistakes and How to Avoid Them

Running a business in California means you’ve got a lot on your plate, and workers’ compensation might not always be top of mind. But here’s the thing: one misstep with workers’ comp can cost you big—both in fines and lost time. Don’t worry; we’ve got you covered with the most common mistakes businesses make and how you can avoid them, all with a California-specific focus.

What’s the Deal with Workers’ Comp in California?
In California, workers’ comp is a *must-have* for every business, no matter how big or small. Got one employee? Yup, you need it. Part-timers or temps? You’re on the hook for coverage. Skip it, and you could face hefty penalties, plus the cost of paying out-of-pocket for injuries.

Common Mistakes—and How to Dodge Them

1. Waiting Too Long to Report Injuries

The Problem: California law says you have just 5 days after learning about a workplace injury to report it to your workers’ comp insurance. Miss that window, and you’re looking at penalties and potential claim issues.
The Fix: Have a simple injury reporting process in place. Post signs around the workplace about how and when to report incidents, and make sure everyone knows who to talk to.

2. Misclassifying Employees
The Problem: Mislabeling employees as contractors or assigning them the wrong job classification can lead to major fines. California takes this seriously, especially with strict rules around who qualifies as an independent contractor.
The Fix: Review your employee classifications regularly. When in doubt, consult with an HR expert or your insurance agent (like us!) to make sure you’re in the clear.

3. Skipping a Return-to-Work Plan
The Problem: When injured workers don’t have a clear path to come back, they stay out longer—and claims get pricier.
The Fix: Create a return-to-work program with modified duties. This could mean a light-duty job or shorter hours while they recover. It helps employees ease back in and keeps costs down.

How to Save on Workers’ Comp in California

Now that we’ve tackled the mistakes, let’s talk about keeping costs in check.

1. Invest in Safety Programs
California has state-certified workplace safety programs that can actually lower your workers’ comp premiums. Bonus: fewer injuries mean fewer claims.
– Example: Offer regular safety training for your team and encourage reporting hazards.

2. Bundle Insurance Policies
Save some cash by bundling workers’ comp with your other business insurance. Many providers offer discounts for packaged coverage.

3. Review Your Policy Annually
Your business changes year to year—shouldn’t your workers’ comp reflect that? Reassess your needs annually to make sure you’re not overpaying.

4. Use California’s Low-Cost Options
Look into the State Compensation Insurance Fund (SCIF). It’s designed to help small businesses get affordable coverage.

Your Partner in Workers’ Comp
Workers’ comp doesn’t have to be a headache. At PM Insurance Services, we specialize in helping California businesses like yours navigate the system and save money while staying compliant.

Got questions or want a free policy review? Reach out today—we’re here to help you protect your team and your business.