How employers can take action

Rising claim severity, increasing medical costs, evolving workplace safety requirements, and changing workforce dynamics are creating new challenges for employers. Organizations that take a proactive approach to analytics, injury prevention, employee support, regulatory compliance, and emerging risks will be better positioned to control costs and improve outcomes.

Leverage analytics to reduce risk, improve outcomes, and reduce total cost of risk

Advanced analytics can help organizations identify the claims, behaviors, and operational factors most likely to drive future costs. Those insights can inform a deeper review of claims management, safety practices, medical utilization, and other root causes.

Lockton 360 combines quantitative analyses with qualitative assessments to turn data into actionable business plans. By leveraging benchmarking, predictive analytics, targeted performance metrics, and continuous monitoring, employers can move beyond identifying what happened and instead better understand what actions will deliver sustainable improvements over time.

Improve outcomes by focusing on employee support, return-to-work programs, and quality medical care

When an injured employee sees that their employer cares about their recovery, provides quality medical care, and helps them navigate the claims process, their claims are more likely to be resolved efficiently and at lower cost.

Clear, compassionate communication after an injury helps employees feel valued and supported while reducing frustration and the likelihood that they hire attorneys, which can significantly increase claim costs.

Employers should also accommodate work restrictions whenever possible and return injured employees to productive work, as keeping employees on the payroll is typically more cost-effective than extended indemnity payments. In addition, building relationships with reputable medical providers who understand and support an employer’s return-to-work philosophy can help ensure employees receive timely, appropriate treatment.

Do not wait to strengthen heat illness prevention programs

Despite some debates among regulators and lawmakers — and slow progress toward enacting a federal standard — employers should expect continued expansion of heat-related compliance obligations and increased enforcement activity in the coming years. Organizations operating in multiple jurisdictions may face the greatest challenges, as state and local standards continue to evolve while OSHA pursues a nationwide framework.

Specifically, employers should implement and document heat illness prevention plans that clearly assign responsibilities, including acclimatization procedures for new and temporary workers, training employees and supervisors to recognize and respond to heat stress, and establishing protocols for modifying work schedules during extreme heat. Employers should also ensure access to cool drinking water, shade, and rest breaks; monitor conditions and workloads; train workers on emergency response; and review compliance with applicable state and OSHA requirements.

Address remote work risks before claims arise

As remote and hybrid work become permanent features of the workplace, organizations should take a more proactive approach to preventing and mitigating injuries at home. Among other steps, employers should establish clear work schedules and expectations, implement formal injury-reporting procedures, provide ergonomic guidance, and maintain thorough documentation.

Given potentially heightened concerns around ergonomic injuries, reporting challenges, and compensability disputes, employers that can account for distributed workforces in their safety programs will be better positioned to manage claims, support employee wellbeing, and reduce potential conflicts when injuries occur.

Consider active assailant coverage within broader workplace violence and crisis management strategies

Employers should look at active assailant coverage as more than a stand-alone insurance purchase. Organizations should first identify their primary concerns — liability, employee protection, property damage, business interruption, or crisis response — and then ensure coverage aligns with those priorities. Companies should also take advantage of embedded security consulting services, which can support threat assessments, active assailant drills, employee termination planning, and other preventive measures.

For organizations considering active assailant solutions, it’s vital to work with experienced specialty insurance brokers. These specialists can negotiate broader coverage, identify potential gaps, benchmark limits, and help organizations understand and evaluate the full range of solutions available in the marketplace.