Workers’ compensation claims can be one of the most expensive challenges employers face—especially when claims drag on or escalate unnecessarily. But what if there was a preventative solution that didn’t just rely on safety protocols or claims management strategies? More employers are beginning to understand the powerful connection between voluntary benefits and lower workers’ compensation claims. Voluntary benefits like disability insurance, accident coverage, and critical illness policies not only support employees through personal hardships, but also create a more stable, well-supported workforce that’s less likely to overuse or extend workers’ comp benefits.
Here’s how it works.
Helpful Facts
- Voluntary benefits reduce unnecessary workers’ comp claims.
- They support faster recovery and return-to-work.
- Employees feel more secure and less likely to misuse comp.
- Better education leads to smarter claim decisions.
- Fewer claims = lower costs for employers.
What Are Voluntary Benefits?
Voluntary benefits are supplemental insurance options that employees can choose to add to their employer-provided benefits package, typically at little or no cost to the employer. These can include:
- Short-term disability
- Accident insurance
- Critical illness coverage
- Hospital indemnity
- Legal or identity protection services
These benefits are called “voluntary” because employees choose whether or not to enroll. They’re usually paid through payroll deductions, and are designed to fill in the financial gaps that traditional health insurance or workers’ comp may not cover.
The Hidden Link: How Voluntary Benefits Reduce Workers’ Comp Claims
1. Employees Have Options Beyond Workers’ Comp
Without voluntary benefits, employees often rely solely on worker’s comp for any work-related or borderline issues. When a strain, illness, or injury occurs, workers may feel like workers’ comp is their only path to coverage.
With voluntary benefits, they may have access to accident or disability insurance that covers similar events—often with less paperwork, faster claims processing, and more flexibility. This reduces unnecessary or borderline comp claims.
2. Faster Return to Work
Employees with access to voluntary benefits tend to recover and return to work more quickly. With added financial security, they experience less stress, can afford appropriate care, and avoid dragging out leave due to financial concerns. Faster return-to-work timelines can significantly lower workers’ comp claim costs.
3. Improved Morale and Trust
When employees feel supported and know their employer has provided benefits that protect them beyond the minimum, morale improves. They are more likely to be honest in claims reporting and less likely to see comp claims as their only financial lifeline.
4. Better Employee Education Around Benefits
Voluntary benefit programs often come with educational resources. When employees are better informed about their benefit options, they make smarter decisions about which route to take for a given situation. This leads to fewer, more appropriate workers’ comp claims.
Real-World Example
Imagine an employee pulls a muscle lifting a heavy object. If the injury happens at work, a workers’ comp claim may be valid. But if the strain occurred off-site or over time, things get murky.
Without any supplemental protection, the employee may feel pressure to label it as a workplace injury to receive benefits. However, with voluntary short-term disability or accident coverage in place, they may choose the policy that best fits the situation without stretching the boundaries of workers’ comp.
How Employers Benefit
In addition to reducing the number of questionable or borderline claims, offering voluntary benefits can:
- Lower overall workers’ comp insurance premiums over time
- Improve employee retention and satisfaction
- Support a culture of wellness and safety
- Reduce administrative burdens by redirecting certain claims
By making these benefits available, employers shift some of the risk and responsibility away from the workers’ comp system and into a broader, more flexible benefits strategy.
Making Voluntary Benefits Work for You
Partner with the Right Benefits Provider
Choose a provider with experience in both core benefits and voluntary offerings. They should understand how to position these policies as part of your overall risk management strategy.
Communicate Clearly
Employees won’t use benefits they don’t understand. Educate your team during open enrollment and throughout the year with examples of how and when to use voluntary benefits.
Track the Impact
Once voluntary benefits are implemented, keep an eye on workers’ comp claims trends. Are fewer claims being filed? Are claim durations decreasing? This data will help you evaluate ROI and adjust your program as needed.
The Future of Voluntary Benefits
Voluntary benefits are more than a perk—they’re a strategic tool in the battle against rising workers’ compensation costs. By giving employees better options and encouraging responsible claim behavior, you protect both your people and your bottom line.
If you’re ready to explore how voluntary benefits could support your risk management goals, the experts at Post Insurance can help. With decades of experience advising California businesses, we specialize in customized benefits packages that align with your operational needs and workforce goals.
How Can Post Insurance Help?
Providing “Smarter Insurance Since 1954,” Post Insurance is a third-generation insurance agency with expertise in benefits insurance of all types. Our Employee Benefits specialists will help you build a program tailored to your company’s needs, including Disability Insurance, Group Medical, Life Insurance, Voluntary Benefits, and more.
You may have been recommended to us by one of our many satisfied customers, or you may have searched online for “employee benefits near me.” However you found us, we’re happy to welcome you. If you have questions about an Employee Benefits Program or would like to receive a quote, please fill out our contact form or call 800.262.9998.