Tuesday’s Tip from Tom: “How Does Voluntary Disability Insurance Affect Employers Worker’s Comp Claims?”

Tuesday’s Tip from Tom: “How Does Voluntary Disability Insurance Affect Employers Worker’s Comp Claims?”

A major employee benefits insurance company has been promoting a survey that suggests when employers establish a voluntary disability insurance program for their employees, employers experience a reduction in the number of workers’ compensation insurance claims.

This subject has been debated for some time, but I have yet to find credible research to confirm the findings of this survey.

A recent press release by this insurance company outlines their discoveries and they are available here for you to determine their credibility.

One of those questioning this study is U C Berkeley researcher, Frank Neuhauser, who is experienced in the research methodologies used to study workers’ compensation and disability claims.  He was recently quoted by WorkCompCentral: “This is not research…This is just a marketing tool…There’s no reliable data to judge this.”

This “TIP” is one that provides employers with information to ponder and determine for themselves if they can financially benefit.

Also, members of the insurance community wonder if this is just a way to sell more insurance policies or if there are truly any employer’s costs benefits.

Many employers and those in the risk management community feel that disability insurance is a valuable benefit for employees.  But, as they say “the jury is still out” as to whether there are an affects upon an employer’s workers’ comp claims.

My thanks go to Frank Pennachio of Oceanus Partners for providing some content to this post.

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Tom Bone
Risk Insurance Advisor
ISU Insurance Services
2266 Lava Ridge Court
Roseville, California 95661
Phone 916.960.8758 or 800.823.4852 ext. 8758
Fax 916.773.4484
Mobile 925.285.6790
Email tbone@risksnthreatsmatter.com
License #0306692