32 AUGUST 2025 WorldWide Drilling Resource® Drilling Into Money Not Boring by Mark E. Battersby Dealing with Workers’ Compensation Workers’ compensation (comp) insurance remains mandatory and expensive for everyone in the drilling industry. Every employer is required to have workers’ comp insurance in most states, even if it has just one part-time employee. Workers’ comp is a program requiring every employer to provide insurance to pay for the treatment of employee injuries or sicknesses which arise out of and in the course of employment. By law, workers’ comp is always no-fault insurance, meaning employers must cover occupational injury or illness even if the employee is at fault. However, while it is the law and there is no way around it, managing or reducing the costs associated with workers’ compensation is a necessity today. Fortunately, keeping workers’ comp costs manageable is feasible - and necessary. Every drilling professional should be serious about workplace safety, posting warnings and safety instructions around the workplace. Also, investing in safety training and requiring employees to wear proper safety gear helps reduce workers’ comp costs. Often, a safety consultation with a state workers’ compensation representative or an independent professional can result in a reduction of the operation’s long-term costs. Every drilling professional can also reduce costs by managing the injury process from beginning to end. Starting with rapidly reporting the claim to controlling the claim throughout its lifespan, every stage should be managed and monitored by the business. In addition, it’s important to: c Communicate regularly with injured employees. Research indicates this lowers costs per claim and encourages employees to return to work faster. c Consider self-insurance for workers’ comp to provide medical benefits via a managed care health provider. c If state law allows it, institute an early return-to-work program. This includes educating your designated physician about the rigors of your business and each employee position. c Finally, review the operation’s workers’ comp claims and costs on a quarterly basis with an eye for addressing safety issues and over-expenditures. There are additional ways to save on the operation’s workers’ compensation policy, such as bundling discounts. Most insurance companies allow individuals and businesses to earn discounts when they bundle more than one type of insurance through them. Finally, every drilling professional should consider the operation’s insurance broker and insurance claims handler or thirdparty administrator as a partner. Together, a cost reduction plan can be developed before workers’ compensation costs climb and cost reduction strategies become necessary. Mark Mark E. Battersby may be contacted via e-mail to michele@worldwidedrillingresource.com Take a break - Get a prize. Get a piece of paper and a pen, or pencil. Sit down, and let us know what you think and what you remember. 1. Which of our writer’s articles do you look for every month to read? 2. Which advertiser was on page 61 of our July issue? 3. When did you sign up for WorldWide Drilling Resource®? 4. Where were you when you signed up for WorldWide Drilling Resource Drilling Resource®? 5. How did you sign up for WorldWide Drilling Resource®? Send your answers to: WWDR PO Box 660, Bonifay FL 32425
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