Expert Advice from Mark Walls: Tackling Continuous Trauma and Catastrophic Claims in Workers’ Comp

Managing workers’ compensation is a constant challenge for restaurant operators, especially in states like California, where continuous trauma (CT) claims and rising wage rates significantly affect costs.  In a recent interview on the Self Insurance Podcast, Mark Walls, Vice President of Client Engagement at Safety National, shared valuable strategies for reducing workers’ compensation expenses.

With over 30 years of industry experience, Mark outlined key risk mitigation strategies, highlighting loss prevention, California’s unique workers’ comp challenges, and the rising costs of catastrophic claims.

 

Loss Prevention: The Most Effective Strategy

Mark emphasized that loss prevention is employers’ most effective strategy to lower workers’ compensation costs. “The cheapest accident is the one that never happens,” he stated. Employers who build a strong safety culture and invest in accident prevention can significantly reduce their claims exposure.

“Once an accident occurs, you lose control over things,” he explained. Businesses prioritizing safety training and protocols are more likely to avoid costly claims. This is especially important in high-frequency claim areas like slips and falls, which are common in the restaurant industry. Proactive measures—such as non-slip flooring, appropriate footwear, and regular staff training—help prevent these injuries from happening.

At CRMBC, we’ve seen firsthand how collaboration between underwriting, claims, and loss prevention teams can improve outcomes. Mark noted that when these departments work together, they can spot trends early and act swiftly to prevent accidents. “Solve the problem before it becomes a trend,” he said.

 

California’s Continuous Trauma (CT) Claims: A Unique Challenge

One of California’s most significant workers’ compensation challenges is the high prevalence of continuous trauma (CT) claims. These claims, which Mark identified as a key driver of costs in the state, allow workers to file for injuries that develop over time—often from natural aging processes.

“In California, you’re allowed to file a claim saying, over time, I sustained an injury, and that’s somehow related to my employment,” Mark explained. Conditions like knee pain from prolonged standing, typically covered by healthcare in other states, can become workers’ comp claims in California, driving up employer costs.

Mark highlighted that 38% of California workers’ compensation claims are related to continuous trauma, with half of these claims ending up in litigation. This significantly burdens employers, particularly in industries like restaurants where physical labor is common. “Employers in other states don’t face this same challenge,” he added.

 

Catastrophic Claims: A Growing Concern

Beyond continuous trauma, catastrophic claims—those involving severe injuries—are becoming more frequent and costly. Over the past six years, Safety National has seen a 91% increase in claims over $2 million and a 183% increase in claims exceeding $10 million.

Advancements in medical technology have played a significant role in this trend. While medical advances save lives, they also require long-term, expensive care for injured workers. “Medical advances are saving lives, but at a much higher cost,” Mark said.

Seemingly minor accidents, such as slips and falls, can escalate into catastrophic claims if a worker suffers a head or spinal injury. The financial implications are severe, with multimillion-dollar expenses that strain even well-prepared businesses. This is a crucial area of concern for restaurants, where the risk of accidents is always present.

 

Preparing for the Future: Practical Steps for Employers

What can restaurant operators do to manage these increasing risks? Mark’s advice was clear: invest in loss prevention and safety culture to reduce the frequency of claims. Preventing accidents minimizes exposure to workers’ compensation claims and avoids high litigation and long-term care costs.

Businesses in California, in particular, should monitor employee health and injury patterns to mitigate the impact of continuous trauma claims. Working closely with legal teams ensures proper claims handling, reducing financial exposure.

Lastly, employers must prepare for the growing impact of catastrophic claims. While less common, these claims can have a devastating financial impact. By partnering with restaurant insurance companies like CRMBC, restaurant owners can better manage workers’ compensation programs and ensure coverage for high-cost claims.

 

Conclusion: Reducing Costs by Preventing Claims

Mark stressed that prevention is the most effective way to control workers’ compensation costs. Employers can significantly reduce their risk by implementing safety measures, managing claims proactively, and focusing on preventing catastrophic injuries.

For California restaurant owners, understanding the challenges posed by continuous trauma claims and the increasing costs of catastrophic injuries is essential. Partnering with CRMBC and adopting comprehensive risk management strategies can help businesses protect their employees and bottom line.

For more insights into managing workers’ compensation in California, subscribe to the Self Insurance Podcast or contact us at info@CRMBC.com to learn how we can help you navigate these complex challenges.