by Marc Rhee, Esq.
A survey released by Aflac suggests that offering access to voluntary insurance may lower the amount of workers’ compensation claims. The survey asked 600 employers, of various sizes, if they provide access to accident or disability insurance to employees and whether there was a change in the amount of workers’ compensation claims.
The survey found that 55% of large companies that provided access noted declines in workers’ compensation claims while 34% of small and medium sized companies also noted declines. Furthermore, 31% of the employers who offered accidental insurance noted declines in workers’ compensation claims of 25% or greater, while 30% of all employers who offered disability insurance noted declines in claims of 25% or greater.
This is particularly important given that in 2011, employers paid over 77.1 billion dollars in workers’ compensation benefits, according to a 2013 report from the National Academy of Social Insurance. It is too early to tell whether this is anything more than mere correlation. Additionally offering voluntary insurance will carry large costs of its own. However, if implemented correctly, voluntary insurance could become a viable method of curbing costs associated with workers’ compensation claims.
