How Does Alternative Dispute Resolution Help Employers?
December 29, 2020
Running a business in California, a single worker’s comp claim can cripple you. The system favors employees, opening opportunities to unscrupulous individuals who may file fraudulent claims against your business. Even well-founded claims can have long-term effects on a company by absorbing the owner’s time and attention.
To combat the system in California, Samuel Hale partners with businesses to help manage their worker’s comp programs. We offer innovative state-approved solutions to dealing with workers’ comp claims founded on Alternative Dispute Resolution (ADR) with the goal of keeping companies out of litigation and achieving resolution faster.
What is Alternative Dispute Resolution?
ADR refers to several strategies employed to keep conflicts out of litigation. It commonly covers:
Arbitration: involved parties agree to let one or two individuals decide their dispute with a legally binding arbitration award.
Mediation: an impartial third party helps to dispute individuals understand each other’s viewpoints.
Negotiation: both direct and indirect communication directed towards resolving a dispute.
All forms of ADR have a similar foundation. They’re focused not on the two sides arguing to resolve a dispute, but on developing a better understanding between the parties. Individuals are empowered to come up with a resolution agreeable to everyone.
By employing Alternative Dispute Resolution in workers’ comp cases, Samuel Hale reduces the impact of claims against businesses. We act as your partner, providing worker’s compensation insurance without the ongoing and substantial costs to your business.
Key reasons you should use ADR in your workers’ comp cases.
When a workers’ comp claim goes to litigation, you’re already on the hook for substantial expenses. Using Alternative Dispute Resolution techniques, you and your employee work cooperatively to streamline the claims process with a state-approved 3-step strategy.
Ombudsman: we resolve 90% of claims at this point in the process, with an Ombudsman reviewing the presented case and offering a fast resolution.
Mediation: an additional 9.6% of cases are resolved at this stage as both parties work towards a resolution.
Arbitration: a mere 0.4% of cases reach the arbitration hearing stage, with a judgment issued within 30 days.
The system used by Samuel Hale prevents workers’ comp claims from reaching litigation, saving employers years waiting for a decision from the Workers’ Comp Appeals Board. Because collective understanding is the focus, there’s no risk that employees will appeal the decision, as they participated in the development of the resolution.
ADR methods save employers both time and money better spent on your business.
Even when fraudulent claims are denied, workers can appeal the decision. Appeals will keep employers dealing with workers’ comp for years at a time while their insurance premiums creep up. These unexpected and compounding expenses act as a drain on an otherwise promising business. Employers find their attention diverted away from critical areas of their company as they struggle to keep up with litigation developments.
Working with Samuel Hale, you’re able to avoid legal fees and mounting costs from your workers’ comp insurance. At Samuel Hale, we offer competitive rates, plus ex-mod reduction and containment. You don’t have to worry about rising premium rates or fear every workers’ comp claim will devastate your bottom line.
Contact Samuel Hale to reduce your workers’ comp claim costs by over 50 percent.
At Samuel Hale, we use a unique co-employment business solution. By building our methods on Alternative Dispute Resolution, we can advocate for employees while improving workers’ comp claim costs for employers.
If you’re wondering if there’s a better way to handle your worker’s comp claims, contact us for a free claims analysis. We’ll evaluate your current costs and explain how we can offer an alternative solution that protects both you and your employees.