Does my Nonprofit Need Workers’ Compensation Insurance?
On average, employers spend $120,000 on each workplace injury. Of course, $120,000 may seem exaggerated for a nonprofit workplace injury, but there is where the conversation of indirect costs comes about. Indirect costs cover items such as your time spent managing the accident process, hiring temporary workers, overtime pay to other staff carrying the workload, legal counsel, and higher workers compensation premiums, to name a few. According to a study performed by Harvard University, “for every dollar spent on direct costs, $2.12 is spent on indirect costs”. With the rise of nonprofits continuing to stay remote, injuries are now happening in your employee’s new workplace, their home. In addition, the issue of ergonomic-related injuries, increased safety hazards, and travel to and from workplace events have posed new problems for companies.
Although Texas is one of the two states that don’t require workers’ compensation, could your nonprofit financially recover if one of your employees got hurt? An injured employee has the option to sue their employer for medical expenses, legal fees, lost wages, and more. Without a workers compensation policy, the business cannot use traditional defenses such as contributory negligence, assumption of risk, and even waiver of liability. Regardless of coverage status, if an employee gets hurt on the job, follow the six steps below to avoid future losses and ensure employee recovery.
- Provide medical assistance
- Report the injury
- Gather information and testimonies of accident
- File OSHA 300 log (if applicable)
- Check-in with the injured regularly
- Maintain constant communication with your insurance company and injured employee
We encourage managers of injured employees to reach out regularly to check in on the employee, letting them know they are valued, missed, and management is eager to get them back to work. Lack of communication with your injured employee leaves them feeling neglected, leading them to seek avoidable legal action. A worker’s compensation policy isn’t a quick fix to avoidable workplace hazards. Our process involves a loss control audit to address common pitfalls nonprofits face regarding employee safety.
If your organization doesn’t have a workers compensation policy or would like a workers compensation audit, give us a call. Provide a safer, more financially secure organization and reap the benefits of a fully protected business.