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How Workers’ Compensation Changed During COVID-19

How Workers' Compensation Changed During COVID-19
How Workers' Compensation Changed During COVID-19

The COVID-19 pandemic had a huge impact on many U.S workers. The outbreak of the virus left many people without jobs, and those that were still working either had to take time off or work from home. While many states are beginning to reopen, uncertainty remains a significant concern especially if workers can now actually go to work safely. Employers are still working on workers compensation solutions when it comes to new laws, properly classifying employees, or managing payroll. For this reason, it remains a challenge for employers and insurers when it comes to workers’ compensation.


Amid the pandemic, telemedicine has grown in popularity will most likely remain after the new normal. Telemedicine is one way that some companies are working to address the uncertainty. It has presented a great opportunity for employers to stay ahead of the curve. For example, if employees need medical attention while they’re on-site at work, they can now use videoconferencing to consult with a physician. A workers compensation provider network will highly recommend this to employers so they can immediately provide medical attention to employees and minimize healthcare costs.

Lower claim frequency

In the aftermath of COVID-19, workers’ compensation claim frequency has decreased. This is likely because employees are less likely to get injured in a remote workforce. When employees are in a work from home setup, it reduces the number of chances of workplace injury. This decrease in claim frequency can have a wide-ranging impact on budgeting, premium, balance sheet accruals, and collateral requirements.

Unclear Costs of Workers’ Compensations in the Future

It’s hard to estimate the true cost of workers’ compensation in the coming years. With several U.S states introducing new regulations, executive orders, and legislations regarding workers’ compensation claims, there are still many questions left unanswered especially when it comes to claimants who contracted the virus. There is little known information yet about the long-term health impacts of patients who have recovered from the virus, and there is a possibility that they can develop far more serious complications in the future. With this, employers could face significantly higher costs.

Fraudulent claims

There has been an increase in fraudulent claims, especially when it comes to the workers’ compensation system. There have already been several reports that employers are misusing this legislation and claiming for injured employees who did not contract the virus while others might be fabricating medical records, unlisted lab tests, or using fake doctors to get a phony diagnosis or fake prescription. Therefore, it is highly advised that employers remain vigilant in monitoring fraud and watch out for common red flags especially when employees suddenly become difficult to reach or are uncooperative.

In conclusion, COVID-19 has caused many changes in how we deal with workers’ compensation. These changes have had mixed effects on employees and employers, and it remains unclear how these impacts will be felt in the future. Luckily, the right workers compensation provider network can help companies come up with the most effective workers compensation solutions and minimize risk amidst the constant changes.

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