Workers’ Comp is Built for More Than Injuries: Tips for Small Businesses

Workers’ comp insurance should support your business all the time, not just kick in when you report a claim.

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In Louisiana, small businesses – those with fewer than 500employees – make up 99.5% of all businesses. Nearly 900,000people, or 52.8% of the state's workforce, are employed by a small business. 

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While Louisiana businesses of any size are required to have workers’ compensation insurance, here are 5 tips that are especially important for small businesses to know to protect themselves and their employees.

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1. Forget misconceptions about workers’ compensation insurance and take advantage of all your policy has to offer.

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Many people mistakenly view workers' compensation insurance as just a legal requirement or a financial burden, but in reality, it plays a critical role in fostering safe, productive workplaces. The true purpose of any workers' compensation policy is to protect both employees and employers by ensuring workers have a secure environment in which to thrive. Work with your carrier to understand the benefits available to you under your policy. At LWCC, our ultimate goal is to help businesses succeed by promoting workplace safety, minimizing risks, and ensuring that employees receive the support they need to return to work with confidence.

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2. Make safety a top priority.

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Prioritizing workplace safety is essential for any business, especially small businesses, to minimize risks and create a culture of accountability. While services vary by carrier, LWCC offers policyholders access to a dedicated team of safety consultants with over 125 years of combined experience, along with a comprehensive library of free resources including step-by-step safety plan guides, handouts, and online training to help businesses proactively manage safety and compliance.

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Click here to learn more about our Safety Services Team and access our resource library.

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3. Report claims immediately.

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Even in a safe workplace, accidents can happen. If a workplace accident does occur, it is crucial that a claim is made as quickly as possible. Every hour businesses delay reporting an injury can negatively impact the injured worker and substantially increase claim costs, which potentially can drive up premiums. At LWCC, initiating a claim triggers a tailored process that connects businesses with a skilled network of professionals and medical providers, helping ensure a smooth recovery and a timely return to work.

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4. Implement and enforce a drug-free workplace policy.

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A strong drug-free workplace policy is essential for maintaining a safe, productive, and healthy work environment—especially for small businesses, where every team member plays a critical role. According to the Substance Abuse and Mental Health Services Administration, in 2023, 48.5 million people had a substance use disorder. This equates to a significant portion of the American workforce.

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By promoting safety and accountability, businesses can reduce risks, support employee well-being, and create a culture that discourages substance misuse. LWCC offers free resources, including a step-by-step guide and a sample policy, to help businesses implement an effective drug-free workplace program.

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5. Hire insured subcontractors

When outsourcing work, small businesses should prioritize hiring insured subcontractors to protect all parties involved. Without proper coverage, subcontractors and certain independent contractors may be considered employees, potentially leading to unexpected workers’ compensation costs. To avoid additional premiums, businesses should always request a Certificate of Insurance (COI) to verify coverage before work begins. The Louisiana Workforce Commission’s Workers’ Compensation Coverage Verification Tool is a great resource for confirming active coverage. Learn more at LWCC’s Contractor Resource Page.

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Your workers’ compensation insurance should provide value to you all the time, not just in the event of an accident. Using these tips, businesses can ensure that their policy works for them and not the other way around.

As Louisiana’s largest workers’ comp carrier, LWCC is dedicated to fostering a culture of safety and wellbeing across our home state. We provide businesses with the resources they need to protect their employees and grow successfully—because helping Louisiana thrive isn’t just our job, it’s our purpose.

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