Are You Financially Ready to Handle a Workplace Injury?

Workplace injuries aren’t uncommon. The Bureau of Labor Statistics released data at the end of 2024 that shows us just how common they are:

• 5283 fatal work accidents at work
• 6 million injury and illness cases related to work
• 5 cases of days away from work, job restriction, or transfer per 100 employees

You’ll be pleased to know these numbers are all actually down from the previous year. And, unless you’re in a high-risk job, you’re unlikely to encounter fatalities (we hope). But the issue is the smaller cases. The falls, the trips, and the workplace-related minor injuries and illnesses. Are you financially prepared for them? Read on to find out.

Probably Not

Are you financially prepared for a workplace injury? Probably not. They’re expensive. The big brands like Amazon or Boeing (statistically more likely to experience workplace-related injury claims) obviously have the cash flow to manage it. SMEs don’t.

According to the National Safety Council, the average cost of a medically consulted workplace injury is over $42,000. Are your eyes watering? And that number doesn’t even factor in the cost of missed work, replacing staff, or legal defense.

If an employee suffers a serious injury, there’s a good chance the business won’t have the cash reserves to cover immediate costs. Businesses rely on basic workers’ comp insurance without fully understanding what’s covered. Some policies come with limits or exclusions, and most business owners don’t realize the gap until after the claim hits their desk.

You can use a workers’ comp insurance estimator to find out how much the different levels of coverage cost. Workers’ compensation insurance is a legal requirement managed by the state, and almost all states enforce it.

To add to the issue, 90% of businesses in the U.S. have fewer than 20 employees, according to the SBA. That means fewer layers of protection, fewer backup staff, and less flexibility to absorb a sudden financial blow.

Employee Rights With Workplace Injury

Employees in the U.S. have a legal right to a safe workplace. The Occupational Safety and Health Administration. If an injury happens in the workplace, the employer is expected to cover the cost through workers’ compensation.

But the legal duty doesn’t stop there. If it’s proven that a business ignored safety standards or failed to provide proper training, the potential legal consequences escalate. In some states, employees can file lawsuits for negligence on top of their workers’ comp claims.

And your issue is that workers are more informed than ever. Many know exactly what they’re entitled to, and personal injury lawyers are all over social media offering free consultations. If you think an injured worker will just take it on the chin, you’re kidding yourself.

How to Cover Yourself

First is the correct workers’ compensation insurance in place. Not all policies are created equal, and some industries carry higher risks than others. A general policy might be OK for office work, but not for construction or manufacturing.

Then there’s safety. That means clear protocols, proper signage, staff training, and regular equipment checks. That helps prevent injuries and forms part of your legal protection. If you can show that you took reasonable steps to ensure safety, you’re in a much better position if a claim is filed.

We also recommend a financial buffer. Even if your insurance pays out, you’ll still face delays, deductibles, and indirect costs.

And don’t forget risk assessments. Walk your site. Identify hazards. Fix them before they create legal troubles.

The Most Common Workplace Injuries

The most common workplace injury in the U.S.? Slips, trips, and falls. According to the Bureau of Labor Statistics, they account for more than 25% of all reported work-related injuries.

Overexertion is another big one. That includes lifting, pushing, or pulling heavy objects. OSHA states 36% of workplace injuries are a result of manual handling, resulting in an estimated $156 billion in annual costs.

Other common workplace injuries include:

• Injury from objects or equipment
• Cuts and lacerations
• Burns
• Repetitive stress injuries
• Vehicle-related injuries

Are you financially ready to handle a workplace injury? Essentially, a good level of insurance cover that actually covers all the potential workplace-related injuries should be enough. If it isn’t, we hope you have the money set aside to cover the costs.