Saving Money on Your Workers’ Comp Insurance
Frequently we find a Safety Director, Human Resources Manager or Plant Manager is charged with reducing Workers’ Comp costs through safety training. It is a noble cause that will yield even more dramatic effects on your financial performance and workplace safety than just the reduction in premium.
In order to save a meaningful amount of cost on your Workers’ Comp, you will have to prove that you have a safety system in place that will:
- Mitigate injuries
- Track/document the occupational health and safety training in your workplace (that will hold up to an OSHA inspection)
- Provide on-site procedures for managing risk, injuries, treatment, reporting and remediation.
- Build a team approach by establishing workplace safety training designed to eliminate potential injuries before they occur.
- Create a “Culture of Safety” where everyone has a responsibility to maintain a safe workplace.
The following example shows a five year history from one of our clients who has taken the steps required to ensure a safe workplace.
THREE SIXTY SAFETY™ Program started in 2008 has resulted in a 55% decrease in the experience modification factor that correlates directly to premium reductions.
What’s more important here is that while reducing premium costs will save money, the real time cost of a lost time injury goes far beyond the Workers’ Comp premium.
Real Costs are comprised of:
- Lost production time
- Medical and legal expenses
- Corrective Actions
And that doesn’t take into account the effect injuries have on your other employees.
While this example demonstrates a Workers’ Comp savings of $54,371, the cost savings of reducing workplace injuries is likely to be up to 10 times that amount, or $540,000. Now we are talking about a meaningful effect on financial performance.
Please give us a call so we can demonstrate the enormous value you can generate for your company by running a comprehensive safety system for safety training.