In the wake of the COVID-19 pandemic, economists have been closely monitoring how the national and global economy is being affected by the large decline in employment. After much deliberation, it has been concluded that, indeed, the United States is experiencing another economic recession. Here are some insights into what plausible implications can be drawn from the reality of a recession in regards to workers’ compensation.
Common Effects of Recession
Firstly, businesses should expect that they’ll need to prepare to deal with the common effects of a recession in the most proactive way possible. These effects range from an increase in layoffs, to a fall in general revenues, to the looming menace of bankruptcy. According to the CDC, 25.5% of people under age 65 have public health insurance, however, the effects of the recession will, no doubt, lead to an increase in workers’ compensation claims as employees will rush to establish as much financial security for themselves as they can.
Recession and Workers’ Compensation Claims
As stated, evidence also suggests that workers’ compensation claims are expected to increase amidst a recession. Workers often receive more funds than they would through these benefits programs, which offers an inducement to invest attention into workers’ compensation claims rather than simple unemployment insurance. In addition, with fewer staff members and a higher workload, workers are inevitably more at risk of accidents and will rightfully deserve the protection granted by these compensation claims.
The Necessity of Workers’ Compensation Policies
Sadly, the principle of “desperate times call for desperate measures” may be more widely adopted during this recession due to lowered profits. This may bring forth a decline in the observation of safety protocols in workplaces, which in turn puts employees at greater risk of injury. Compensation policies are then all the more necessary for businesses to properly care for their employees and their long-term productivity.
Of course, part of the challenge that comes with establishing a workers’ compensation policy is collecting, managing, and processing however many claims a business receives. An efficient and flexible workers’ compensation claims software helps to facilitate this need. Some aspects of reliable workers’ compensation claims software to look out for are a user-friendly interface, advanced security, and a flexible variety of software extensions.