Business owners have a lot of responsibility on a daily basis. Their primary focus is generating a profit, controlling problems, and maintaining operations. Because of the hectic schedule of an owner, it can go unnoticed when there’s an employee substance abuse issue.
The insurance experts at NorthEast Insurance Services in Freehold, New Jersey, are familiar with this unique business risk. Every business may deal with this problem at some point, and the consequences that can occur from employees misusing drugs and alcohol can be serious.
According to a 2013 study conducted by the National Survey on Drug Use and Health, just under 70% of the U.S. workforce is involved in illicit drug use, and a little over 65% is engaged in binge drinking. These staggering numbers can create serious problems for a business.
Here are some of the most significant ways employers may be affected by this:
- Loss of Productivity: It’s not uncommon for those abusing drugs or alcohol to miss more work than an employee who’s not. This leads to a considerable loss in productivity, as employees are unable to perform their jobs while they’re absent, and are likely to show a decline in performance when they are present.
- Legal Liability: If employees come to the workplace under the influence of drugs or alcohol the potential for accidents increases. In turn, this opens up employers to not just liability but also increased disability and workers compensation premiums. This makes it crucial for businesses to have sufficient coverage.
- Higher Health Insurance Costs: Employers can find themselves paying higher healthcare premiums because of employees with addiction problems. These expenses can be twice as high than for an employee who does not misuse drugs or alcohol.
Once employers realize this is a substantial problem in the workplace, it’s important that they take the proper steps to address it and protect themselves from the negative impact it can have. One of the best ways to do this is by making sure they have an adequate business insurance policy in place. Contact NorthEast Insurance Services at (732) 972-1771 to speak with an insurance agent, or visit them online for additional information.