Five Key Ways To Reduce Workers' Compensation Liability

Managing workers' compensation exposure in Pennsylvania requires more than filing reported claims with your insurance carrier.

Employers that take a proactive, coordinated approach to workplace safety and post-injury claims management can significantly reduce claim frequency and overall cost. Below are five practical strategies Pennsylvania employers should prioritize.

1. Build and Enforce a Strong Safety Culture: Think Outside the Box

Reducing work injuries starts with clear, written safety policies—but it does not end there. Training must be regular. Supervisors must be engaged. Policies must be enforced consistently. Forward-thinking employers go beyond annual safety videos and implement innovative prevention programs such as:

• Morning stretch-and-flex routines to reduce soft-tissue injuries
• Ergonomic and "learn-to-lift" training focused on body mechanics
• Job-specific safety refreshers
• Voluntary wellness initiatives, including weight management support, to address risk factors contributing to musculoskeletal injuries

These programs are particularly important in industries where strains and sprains drive claim frequency. Research supports combining practical training with ergonomic interventions to reduce musculoskeletal injury risk, rather than relying on education alone. Structured workplace exercise programs have also been shown to reduce pain and improve functional capacity in employees performing repetitive or physically demanding work.

Employers should also strike a thoughtful balance between incentives and accountability. Incentive programs are most effective when they reward proactive safety behaviors—such as hazard reporting and safety participation—rather than simply low injury rates. At the same time, careless or willful violations of safety rules should result in documented, consistent discipline. A balanced "carrot and stick" approach reinforces expectations and supports a sustainable safety culture.

2. Maximize Use of Pennsylvania's 90-Day Panel Physician Period

Pennsylvania law gives employers a valuable claim management tool: the ability to direct medical treatment for the first 90 days after an injury, provided a compliant panel list is properly posted and acknowledged. Too often, this opportunity is underutilized. Employers should:

• Carefully select occupationally focused providers
• Ensure panel lists comply with statutory requirements
• Communicate detailed job descriptions to treating physicians
• Maintain active relationships with panel providers
• Consider directing non-emergent injuries through a triage process with an occupationally focused urgent care provider

Panel physicians should be viewed as partners in return-to-work efforts. When physicians understand the employer's operations and modified duty options, employees are more likely to return to productive work sooner.

3. Use Modified Duty Strategically

Returning an injured employee to work within medical restrictions reduces wage loss exposure and improves outcomes. An effective modified duty program should provide meaningful work that clearly complies with documented restrictions. Written job offers, clear communication with medical providers, and proper supervisor training are critical. This approach is supported by systematic reviews showing that workplace-based return-to-work interventions are associated with faster and more sustained return to work compared to passive approaches.

4. Stay Connected with Employees Who Are Off Work

Employers should implement a structured system for checking in with employees who are out of work. The goal of regular contact is not to interfere with care, but to maintain engagement. Research in occupational disability management consistently demonstrates that early, supportive employer communication is associated with shorter disability duration and reduced risk of prolonged work absence.

5. Coordinate Claims Management from Day One

Workers' compensation claims should never be managed in isolation. Early investigation, supervisor training, accurate injury reporting, and coordination with carriers or third-party administrators all matter. Employers that treat each claim as part of a broader risk-management system—rather than a one-off event—are better positioned to control reserves, evaluate compensability issues, and identify opportunities for early resolution.

Note on Multistate Employers

While these strategies are particularly effective under Pennsylvania's Workers' Compensation Act, employers operating in multiple states must remember that workers' compensation is governed by state law. Medical control rules, compensability standards, wage-loss structures, and litigation procedures vary significantly by jurisdiction. A policy or practice that works well in Pennsylvania may require modification elsewhere. Check the laws of the state in which you operate to determine whether you can employee the strategies described here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.