National Safety Month: how you can reduce workers’ comp risk with voluntary benefits
Each June, National Safety Month is an opportunity to take a closer look at how well your organization protects employees—not just on the job, but everywhere risk exists.
Here’s why that matters: According to the National Safety Council, there were 54.5 million preventable medically consulted injuries in the U.S. in 2024. Even more concerning, 92.6% of those injuries happened outside of work, where workers’ compensation doesn’t apply.
For employers offering high-deductible health plans (HDHPs), this creates a hidden risk. When employees delay or avoid care because they can’t afford their deductibles, untreated injuries and illnesses can worsen. In some cases, that can lead to questionable—or even fraudulent—workers’ compensation claims once employees return to work.
Fortunately, there’s a practical way you can help reduce that risk. Below, we’ll walk through where workers’ comp can fall short and how voluntary benefits can help protect both your business and your employees.
What workers’ compensation covers—and what it doesn’t
Workers’ compensation provides benefits to employees who experience a work-related injury or illness. It’s designed to help cover medical expenses and lost wages while protecting you, as an employer, from certain legal liabilities.
While workers’ comp is a critical part of your risk management strategy, it doesn’t eliminate exposure altogether. Coverage gaps, administrative burdens, and rising costs can still affect your organization, especially when injuries don’t clearly fall within workers’ comp guidelines.
The cost of workers’ comp for your business
Workers’ compensation claims can carry significant financial and administrative impact.
According to the National Safety Council, the average direct cost of a workers’ comp claim is $47,316, typically covered through insurance and, in some cases, by your business.
Beyond direct claim costs, you may also face:
- Time spent investigating and managing claims.
- Added strain on HR and leadership teams.
- Expenses for legal counsel, medical advisors, or third-party consultants.
Fraud can add to that burden, with workers’ compensation fraud costing insurers between $35 billion and $44 billion each year.
Where workers’ comp leaves employees vulnerable
Workers’ compensation only covers injuries and illnesses that occur while working. With more than 90% of injuries happening outside the workplace, many incidents your employees experience simply aren’t covered.
Even when an injury is work-related, employees may still struggle if a settlement doesn’t fully meet their needs, leaving them with medical bills, lost income, and difficulty covering everyday expenses.
For employees enrolled in HDHPs, high deductibles can compound the issue. When out-of-pocket costs feel unattainable, employees may delay medical treatment, raising the risk of complications, longer absences, and disputes down the road.
How voluntary benefits can help reduce your workers’ comp risk
Voluntary benefits—such as accident insurance, hospital insurance, critical illness insurance, cancer insurance, and heart & stroke insurance—can help address these gaps.
These supplemental benefits pay cash benefits directly to your employees following covered injuries, illnesses, or hospital stays. Employees can use the money however they need, including to:
- Offset deductibles and copays.
- Cover household and living expenses.
- Replace lost income while recovering.
When employees have access to financial support outside of workers’ comp, they’re more likely to seek timely care when injuries or illnesses occur. That can help reduce the likelihood of delayed treatment, extended absences, and questionable workers’ comp claims, helping you better manage risk and costs.
A flexible, cost-effective option for employers
Voluntary benefits are generally affordable and offer flexible funding options, including:
- Fully employer-paid.
- Fully employee-paid.
- Shared-cost arrangements.
That flexibility allows you to tailor benefits to your workforce while strengthening your overall safety and risk management strategy, making National Safety Month an ideal time to evaluate your offerings.
Example: how voluntary benefits can help in real life
Bob is injured over the weekend and is unable to work for several weeks. Because the injury didn’t happen on the job, workers’ compensation doesn’t apply. He also doesn’t have paid time off, so he must take unpaid leave.
Fortunately, Bob enrolled in accident insurance through your benefits program. The policy pays benefits directly to him, helping cover his health plan deductible and everyday expenses while he recovers—without financial pressure that could otherwise lead him to pursue a workers’ comp claim.
Strengthening safety—on and off the job
National Safety Month is a reminder that workplace protection doesn’t stop at the job site. While workers’ compensation remains essential, it can’t address every risk your employees face.
Voluntary benefits can help bridge the gap, supporting employees when injuries happen, encouraging timely medical care, and helping you reduce costly workers’ compensation exposure.
Want more? Check out our blog, How to protect your emergency savings from unexpected medical bills.
We’re here for you
Ready to learn more about how supplemental insurance can help protect your employees from out-of-pocket medical bills? Our agents are here to help every step of the way.