Colorado Real Estate Journal - March 18, 2015
Anecdotal evidence has long suggested that companies offering voluntary accident and disability insurance policies experience lower workers’ compensation claims. A new Aflac survey of 945 benefits decision makers confirms that making such coverage available to employees is a smart move for protecting your bottom line. Employees are our greatest resource and present a company’s greatest risk. Businesses need their employees to be safe, healthy and on the job, the evidence supports voluntary accident and disability insurance policies. As you consider how to retain your employees, what are your health and safety best practices, I’d like to share with you the results of the Aflac Impact of Voluntary Accident Insurance and Voluntary Disability Insurance on Workers’ Compensation Claims and Worker Absenteeism Study. The study is based on a nationwide survey conducted in July 2014 by Research Now and Aflac, revealed that 40 percent of all companies providing access to voluntary accident insurance experienced declines in their workers’ compensation claims. When responses were broken down by company size, the survey found that 50 percent of large companies, 38 percent of medium companies and 36 percent of small companies reported declines. In addition to asking employers if they could confirm claims declines, the survey inquired about the significance of those declines. A significant consideration in providing voluntary accident and disability insurance goes to employee absenteeism. Thirty-one percent of survey participants indicated they experienced a decline in worker absenteeism once their company began offering voluntary accident insurance. When responses were broken down by company size, 43 percent of large companies, 24 percent of medium companies and 27 percent of small companies reported declines. In considering voluntary disability insurance and the impact on workers’ compensation claims, the results for voluntary disability insurance were similar to those for voluntary accident insurance: 36 percent of all companies reported decreases in workers’ compensation claims. When broken down by company size, 46 percent of large companies, 28 percent of medium companies and 34 percent of small companies reported declines. As employers, we need our employees on the job. The belief that voluntary disability insurance promotes employee absenteeism is a misconception. The evidence shows that thirty percent of survey participants indicated they experienced a decline in worker absenteeism once their company began offering voluntary disability insurance. When responses were broken down by company size, 43 percent of large companies, 22 percent of medium companies and 26 percent of small companies reported declines. What do these findings mean for employers? In short, savings. By making voluntary accident or voluntary disability insurance available to your workers, you could significantly decrease the frequency and expense of workers’ compensation claims and absenteeism. And even better, both voluntary accident and voluntary disability insurance can be offered to your employees at no cost whatsoever to your business. Sources: 1 Aflac’s “Impact of Voluntary Accident Insurance and Voluntary Disability Insurance on Workers’ Compensation