Brandon Putnam
Vice President, Business Insurance
In sectors like construction and manufacturing, an employee’s first few weeks on the job represent one of the highest liability windows an employer faces, when even small missteps can lead to costly workers’ compensation claims.
When treated as more than a box to check, an established onboarding program can serve as an important line of defense against preventable losses. The right approach influences how well you protect your business from escalating claims that may result in nuclear verdicts, high premium costs, and long-term reputational damage.
Here’s why stronger onboarding can lead to a more resilient, better-protected operation.
Mitigate liability during the first-year risk window.
U.S. employers spend more than $50.8 billion annually on the most serious, nonfatal workplace injuries, many of which stem from preventable causes such as improper handling of equipment, according to Liberty Mutual’s 2025 Workplace Safety Index. Even so, many employers still treat onboarding as a welcome packet or shadow shift.
The problem with leaving training as verbal only, inconsistent, or undocumented is that liability can shift away from the employee and onto the employer. Worse yet, a new hire’s uncertainty doesn’t just endanger their own safety; it can put seasoned employees in harm’s way.
The belief that onboarding exists to simply “get someone up to speed” sells it short. When it’s documented and taken seriously, it can help defuse risks before they turn into injuries and strengthen an employer’s paper trail, keeping experienced crews protected and helping to reduce costly claims.
Strengthen legal defense with documentation.
Most employers don’t imagine a workplace injury escalating into an eight-figure lawsuit, but a jury that believes an organization failed to train, supervise, or protect an employee can push a case into nuclear verdict territory (awards exceeding $10 million).
It’s no longer rare. According to Marathon Strategies, in 2024, U.S. juries issued 135 nuclear verdicts totaling $31.3 billion, which is a 52% increase from the year before.
Assumed or informal training leaves employers struggling to prove that an injured worker was properly instructed, evaluated, or cleared for the task. That gap in documentation can become fertile ground for a negligence narrative — and once it takes hold, it can gain momentum quickly.
A structured onboarding record can help support documentation that shows the company:
- Introduced site or production floor safety protocols
- Delivered personal protective equipment (PPE) requirements
- Trained employees on machinery, tools, and operational hazards
- Verified competency through testing, signoffs, or demonstrated skill
- Took reasonable steps to mitigate foreseeable risks in the work environment
In litigation, this level of recordkeeping signals diligence and accountability, strengthening the employer’s legal position and helping prevent claims from escalating into punitive, high-severity verdicts.
Protect EMOD scores & lower workers’ comp costs.
Workers’ comp premiums respond to injury patterns over time, not isolated incidents. The experience modification rate (EMOD) assigns financial weight to a company’s loss history, and first-year employees often trigger early claims that influence workers’ comp costs for up to three policy years.
Structured training, documented competency checks, and clear role expectations help keep early incidents within the medical-only category, which is a critical factor in protecting EMOD scores and preventing long-term premium inflation.
Carriers are also increasingly factoring onboarding into risk evaluations, especially in high-hazard environments. Employers who can demonstrate documented processes and skill verification are less likely to be categorized as “high-frequency risk,” giving them stronger negotiating leverage, broader carrier access, and a more stable path to premium control.
Build onboarding with reinforcements most employers overlook.
Not all onboarding practices carry the same impact in high-risk environments. Outside of basic orientation, certain elements can help significantly improve safety outcomes, reduce liability, and strengthen defensibility. The following additions can make a measurable difference:
- Job-specific hazard exposure: Task-level orientation should cover site movement patterns, machinery risks, and Occupational Safety and Health Administration-aligned topics such as fall protection, machine guarding, and lockout/tagout, directly tying hazard awareness to job function.
- Post-hire capability alignment: Some employers incorporate post-hire physical capability screenings or functional job testing, conducted only after a conditional offer of employment has been accepted and is in alignment with job-related duties. These assessments can help confirm whether employees can safely perform essential tasks and guide appropriate task assignment to reduce injury risk—when conducted in full compliance with medical privacy and employment regulations.
- Documented certification through a learning system: A learning management system (LMS) provides a centralized, trackable way to train and certify employees on PPE requirements, operational procedures, equipment use, and more. LMS records serve as timestamped proof that employees were properly instructed.
- Return-to-work (RTW) expectations from day one: Introducing RTW expectations early reinforces preparedness. Clear explanation of early reporting, modified duty options, and recovery pathways can shorten claim duration and support long-term EMOD stability.
Upgrade onboarding further with expert loss control support.
Don’t settle for “check-the-box” onboarding. Connect with a Marsh McLennan Agency Arizona representative to help build a structured risk management strategy that demonstrates control to carriers, builds confidence with crews, and helps reduce the likelihood of risk incidents.
