Lowering Your Insurance Costs by Improving Company

Safety

Experience Modification Factor

Experience Modification Factor

What is it? How does it affect your premium? How can you control your mod? Where can you get your exp. mod?

What is it?

Your Experience Mod compares your workers’ compensation claims experience to other employers of similar size operating in the same type of business

Your Experience Mod is calculated by the National Council on Compensation Insurance (NCCI) or in some states an independent agency

What is it? (cont.)

If you are at the industry average, your Experience Mod is a 1.0. If your experience is 20% better than average your Experience Mod would be a .80 or 20% worse 1.20.

It includes 3 years. For instance if your renewal date is 1/1/10, your experience mod will be calculated from your losses in 2006, 2007, and 2008.

How does it affect your premium? Manual Premium - $62,106  Experience Modifier - .73

Discount/Surcharge - $16,769 discountModified Premium - $45,337

Experience Modifier - 1.00Discount/Surcharge - NeitherModified Premium - $62,106

Experience Modifier - 1.43Discount/Surcharge - $26,706 SurchargeModified Premium - $88,812

How can you control your mod?

Establish a safety program and try preventative plans to reduce accidents (i.e. safety training programs)

Accident investigation plan and corrective actions

Report claims promptly An active claims management program Implement a RTW (Return To Work) program

Where can you get your exp. mod?

Typically you will receive an Experience Modification Rating Sheet each year prior to your policy renewal date.

If you are unclear of your company’s current Experience Mod your insurance agent can help you locate this.

Safety Pays

Accidents/injuries cost the U.S. up to $170 billion per year

Successful safety programs can reduce injury and illness costs by 20-40%

The cost of injury prevention is much less than the cost of an injury

Safety Pays (cont.)

A company with safety and health leadership has… fewer injuriesmore satisfied and productive employeesemployees who return to work quickly after an

injury or illnessemployees who produce higher-quality

products and services

Promote an Effective Safety Culture Safety awareness

Safety slogan contest Safety logo contest

Use a team approach Monthly safety meetings Use paycheck stuffers Post safety information on an

intranet or sign-on page Safety & Health newsletter Walk-around inspections Daily, weekly, monthly safety

talk – tailgate talks

Promote an Effective Safety Culture (cont.) Appropriate and immediate

response to accidents Train-the-trainer programs Posted safety statistics Safety bulletin boards Communication and support Clear and obtainable goals Safety box – suggestion box Sticker or pin for promoting

safety Incentive programs Develop a Safety Committee

Reward/incentive programs

What should a safety reward/incentive program focus on? reporting injuries immediately, no matter how minor warning coworkers and reporting hazards submitting safety suggestions attending safety meetings doing hazard analyses reporting near misses practicing safe behaviors

The program should not focus on reducing injury rates in a way that discourages employees from reporting injuries and illnesses

Use smaller incentives that can be awarded more often

Communicate throughout the process, sending clear messages that under-reporting or non-reporting of accidents or incidents will not be tolerated!

Return to Work Program

Objective is to assist an employee in returning to work as soon as it is medically feasible after an injury or illness

Keeps employees active during their recovery and reduces their recovery time

Allows for them to collect full or partial wages and brings their income closer to their wages before their injury or illness

Provides physical conditioning through an active work schedule and increases the probability that the employee will return to work permanently

Provides a feeling of job security

Return to Work Program (cont.)

Direct savings: A reduction in workers’

compensation costs by reducing the length of the disability

Increase in productivity while an injured employee recovers from their injury

Reduction in medical costs and reduced recovery time

Lower workers’ compensation costs may lead to lower insurance premiums

Indirect savings: Costs for recruiting & hiring

new employees may be reduced

Employer is perceived as caring about their employees

Improved relations between employees and management

Improved employee morale and public relations

Receive production for wages being paid to an employee who would otherwise be out of work

Safety Committee Mission

The purpose of a safety committee is to bring workers and management together in a non-adversarial, cooperative effort to

promote safety and health in each workplace. A safety committee assists the employer and makes recommendations for

change.

Safety Committee - Roles

Address employees’ safety and health concerns Review accidents, near miss incidents, and

unsafe workplace conditions Conduct workplace inspections and make

recommendations Help with accident investigations Minutes of meeting should be kept and made

available to all employees

Accident Investigation

Have a plan in place on how to handle the accident before the accident occurs!

Plan procedures: Remember the purpose of the

process (fix the problem not place the blame)

Who should be notified? Who notifies outside agencies

(fire, ambulance, police, etc.)? Who is responsible for

conducting the investigation? Training needed? Who receives and acts on

reports? Timetables set for correcting

the hazards.

Accident Investigation (cont.)

Why should accident investigations be completed? To find out…

details of accident events leading up to the

accident who was involved were proper procedures

not followed; did equipment fail

The information obtained will help to prevent a similar occurrence

Accident Investigation (cont.)

Tools that should be kept on hand Pen/pencil and paper Camera and/or video camera Tape measure Any PPE (personal protective equipment) that is required Accident Investigation Report Rope or tape to secure area if needed List of Accident Investigation procedures

Accident Investigations should be completely ASAP

Steps to an Accident Investigation

Report the accident to the designated person(s) Medical care should be provided if necessary and make

sure to prevent further injuries and/or damage Complete accident investigation Identify all causes Report the findings of the investigation Develop a corrective action plan Implement the plan Evaluate the effectiveness of the corrective action Make any necessary changes

JSA – Job Safety Analysis

Used to define and control the hazards associated with a certain process, job or procedure

The whole job process is broken down into small steps in a table form

The hazards for each step are identified Identify control measures to eliminate, reduce or mitigate

each hazard What’s the value of a JSA?

Results in fewer worker injuries and illnesses, safer, more effective work methods, reduced workers’ compensation costs, and increased worker productivity

They can also be used for training new employees

Jobs for JSA’s

Jobs with the highest injury or illness rates Jobs with the potential to cause severe or

disabling injuries or illness, even though there is no history of this

Jobs in which one simple human error could lead to a severe accident or injury

Jobs that are new to your operation or have undergone changes in processes or procedures

Jobs complex enough to require written instructions

Theft Prevention

Size of the Problem 300 Million to 1 Billion per

Year

(For heavy equipment only) Does not include

Tools Materials Business interruption

Crew downtime Contractual penalties Increased insurance

premiums Replacement or rental costs

3 Key Factors Of Equipment That Is Stolen Value – Primary

factor How much is it worth?

Mobility – Size Can it be moved

easily? Age of equipment

Newer equipment has higher re-sale values.

Cost of new equipment Skid Steers – $15,000 to $30,000 Forklifts - $20,000 - $40,000 Tractors - $30,000 to $50,000 Backhoe Loaders – $45,000 to $70,000

It is estimated that less than 10% of stolen

equipment is recovered.

What can you do?

Protecting your equipment Re-key your

equipment Don’t leave equipment

in remote locations Inventory your

equipment frequently

Have designated storage areas so you know if something is missing

Paint your equipment a unique color

Include your company name & logo

Install & use anti-theft devices

Theft prevention

Equipment Owner applied number Register with NER (National Equipment

Registry) Electronic Article Surveillance (EAS)

Security System Alarm activated if the tool goes past the gate

Equipment locks Device that can disable fuel, hydraulics,

and/or electrical systems GPS tracking devices

Theft prevention (cont.)

Equipment Anchor with either chain or

cable (painted a bright color)

Remove wires or battery Lower all blades or buckets Remove tires if the

equipment will be there for a long time

Disable or remove the hitch on trailers

Place large pieces of equipment around smaller pieces of equipment (i.e. generators, compressors and other small items)

Assign a supervisor to check items

Try to avoid leaving items on an unattended trailer

Theft Prevention (cont.)

Site SecurityPost “Warning; No Trespassing” signsFence area or use barriersLocked gatesLighting, motion sensorsKeep track of all keys for equipment and locks

Driver Safety

Driver safety program Written policies and

procedures

Monitoring programs What to do in case of

an accident Cell phone policy

Written policies and procedures

Hiring practices Interview/application Drug testing/medical

exams Checking MVR/calling

previous employers Written rules for operating

company vehicles Seatbelts usage Obey traffic laws Cell phone policy

Driver Qualification Standards Number of at-fault

accidents Number of traffic violations No serious violations (i.e.

DUI/DWI, wreckless driving, etc.)

Personal usage policy Preventative

maintenance Training Accident procedures

Training

Training Defensive Driving Accident Prevention Equipment Care and Operation Accident and Breakdown

Reporting Road Tests

Monitoring programs

Decal program GPS program In-vehicle video

system

Cell phone policy

Drivers are four times more likely to be in a vehicle accident when they are talking on a cell phone (NSC)

Decide what your policy should state, i.e. banning all cell phone usage, just allowing cell phone usage in emergencies while pulled over safely, or allowing quick phone calls while using a hands-free device, etc.

Have employees sign the company policy

Cell phone policy - links

For more information on cell phone safety please visit the following links: National Safety Council  -  www.nsc.org

Free kit available including posters, a PowerPoint, and a sample written program

Governor’s Highway Safety Association www.ghsa.org

Current laws, articles SafetyXChange -

http://www.safetyxchange.org/tools/sample-company-cell-phone-policy-2

Sample policy

The End

Any Questions ??