Risk Transfer for Workers’ Compensation:
A Strategy to Help Protect Your Business

In workers’ compensation, catastrophic and complex pain-related injuries drive up to 50% of overall costs. Psychosocial issues are the biggest barrier to successful return to work with long-acting opioid use resulting in a 4X increased of claim cost reaching $100,000. Claims that are open for extended periods of time trend higher than claims which close quickly.

For complex and catastrophic work-related injuries, risk mitigation and control strategies that involve the contractual shifting of risk from one party to another can positively impact your businesses’ bottom line and save you money by lowering overall costs. When done effectively, risk transfer allocates risk equitably, placing responsibility for risk to those who have an ability to control and insure against that risk. Risk transfer programs inclusive of flexible pricing options and proactive behavioral health components yield improved return to work, claims closure outcomes and have potential to lower long term costs while reducing long-term risk exposure.