Saving Money on Your Workers’ Comp Insurance

Saving Money on Your Workers Comp InsuranceFrequently 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.

5-Year Chart

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:

  1. Lost production time
  2. Medical and legal expenses
  3. Training
  4. 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.

 

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