Want to know how a workplace injury can lead to financial hardship?
Employees miss work due to injury every second of every day. While many recover physically and jump right back into their careers, others aren’t so fortunate.
The physical recovery is only half the battle. The financial stress that comes with being out of work can be overwhelming.
Here’s the thing…
When workers think about injury-related financial hardships, workers’ comp is always the first thing they think of. But worker’s comp isn’t a cure-all.
Sure, it can (and should) help pay for medical expenses while recovering from a workplace injury. But that’s just the beginning.
Injuries can lead to lasting financial hardships that many people don’t think about. Here’s how injuries can impact the wallet.
You’ll learn:
- How Workplace Injuries Can Lead to Financial Hardship
- Why You Can’t Rely on Workers’ Comp Alone
- Financially Devastating Hidden Costs
- Financial Hardships When Your Claim Is Denied or Delayed
- How to Protect Yourself Financially After an Injury Occurs
How Workplace Injuries Can Lead to Financial Hardship
Did you know…
2.5 million nonfatal workplace injuries and illnesses were reported in 2024 alone? And that number doesn’t even include those who suffered an injury but didn’t report it.
While the above statistic from the Bureau of Labor Statistics is lower than previous years, there were still over 500,000 days-away-from-work injuries recorded.
These numbers are high, but reality hits when you really think about all the workers and families who experience financial hardships because of these injuries.
An injury can create immediate financial stress because you can’t work while you recover. That lost income piles up with every day spent recovering.
And what happens if you’re injured to the point that you can’t return to work? Or your injury limits what jobs you can physically do after you recover?
These long-term financial hardships can stick with workers for years — if they’re lucky.
Why You Can’t Rely on Workers’ Comp Alone
Here’s the shocking truth…
Workers’ comp doesn’t come close to paying workers their normal weekly wage.
According to the National Council on Compensation Insurance, most states compensated injured workers at “about two-thirds of their average weekly wages.”
That might not seem so bad at first, but as bills start piling up, that lost income will catch up fast.
A workers compensation claim filing has to be done correctly from day one. Any mistakes or delays in filing the claim can cost time and money. Depending on what state the workplace is located in, it’s worth familiarizing with how workers comp works.
For workplaces in Minnesota, speaking with a Minneapolis workers’ compensation lawyer as soon as possible will ensure the claim is filled out correctly and maximizes benefits.
According to the National Institutes of Health, 29 to 46 percent of lost wages were replaced across studied states.
That’s a huge gap. In fact, that lost income can easily become the start of a financial hardship.
Financially Devastating Hidden Costs
Lost income has been covered. But what other hidden costs come with workplace injuries?
Medical costs. Not every treatment will be covered by workers comp. Referrals to specialists, physical therapy, and even mental health care can come out of pocket.
Long-term career impact. Some injuries force workers to leave their jobs. Whether they can’t physically do their job after they recover or they have to pursue a career that is less physically demanding. Either way, retraining for a new career is a financial and time investment. Not to mention the new career may not pay as well.
PTSD, stress, and depression. It’s common for workers to feel some sort of mental anguish after a workplace injury. This mental barrier can prolong recovery time and make it difficult to want to return to work.
Loss of income for the family. When a worker is out of work, someone else has to pick up the slack. Whether it’s a partner working extra hours or dipping into savings. There are always financial consequences for the family.
Workplace injuries cost Americans $176.5 billion in 2023. That includes costs associated with wage loss, medical bills, and administrative costs.
Those are just the physical injuries that were reported. There’s no doubt that number would be much higher if it included unreported injuries.
Financial Hardships When Your Claim Is Denied or Delayed
Did you know that many workers comp claims are denied?
While it’s not the majority of claims, there are many out there who’ve had their claims denied. When a claim is denied or delayed, the financial hardships can sink in quick.
Bills still have to be paid. But because the claim is denied or delayed, no benefits are coming.
There are several reasons why claims are denied:
- Failure to report the injury to the employer in a reasonable time
- Failure to seek medical treatment right away
- Failure to give sufficient information at the time of injury or in paperwork
- Employer or insurer disputes claim as work-related
Any of these mistakes can result in a claim being denied.
Again, the key is to take quick action and follow the proper workers compensation claim filing process from the start.
How to Protect Yourself Financially After a Workplace Injury
Injured workers should take quick action to protect themselves and their wallet.
Following these tips will ensure the claim is filed correctly and the benefits deserved are received:
- Report the injury to the employer ASAP. The sooner the injury is reported, the harder it is for the employer and/or insurance provider to dispute the claim.
- Get medical treatment ASAP. Medical treatment starts a paper trail. It’s proof that the injury is real and occurred when reported.
- Documentation is a friend. Document everything — take pictures of the injury, get the names of any witnesses, keep all medical records, and track all correspondence related to the injury and claim.
- Know the deadlines. Each state has different time frames in which a workers comp claim can be filed. Missing that window means a denied claim.
- Educate on state workers compensation laws. Each state has different rules when it comes to workers comp. What may apply to a coworker in another state may not apply elsewhere. When in doubt, seek legal counsel to learn the state’s workers compensation rules.
Dealing with a workplace injury is difficult — especially when drowning in stress about lost income. Workers who act fast and protect themselves enjoy the highest chance of success with their claims.
Wrap Up: Workplace Injury to Financial Hardship
Workplace injuries cause more than physical pain. They can create serious financial hardships.
From lost income to hidden costs, injuries can make workers feel stressed and helpless. But understanding the connection between injury and finances is the first step.
Remember…
- Workers comp doesn’t cover the whole paycheck
- Filing a claim incorrectly can lead to denied and/or delayed claims
- Long-term financial hardships from injuries are often unseen
- Taking immediate action after an injury can prevent financial hardships
Don’t get into a financial hardship. Filing a workers comp claim correctly the first time is crucial. Don’t take that chance.
If located in the Minneapolis area and injured at work, contact Meshbesher & Spence today to learn more about rights as an employee.
