What Workers’ Comp Carriers Look for in a Risk Management Program
No matter the size or type of business, all employers are responsible for providing a safe and healthy work environment for their employees. The good news is that many employers have made strides in improving the safety conditions at their organizations to help decrease the number of injuries incurred over the past several years; however, accidents can still occur at any given moment.
These accidents lead to lower employee morale and productivity, both of which
affect an organization’s overall bottom line. This is why it’s so imperative that business owners take measures to manage the specific risks involved with running their operations.
Controlling Workers’ Compensation Costs with Risk Management
Training employees on workplace safety is key for a proactive approach to minimizing injuries, accidents and controlling costs. Workers’ compensation rates are determined, in part, by the individual loss experience of the business. In essence, the fewer accidents an organization has, the more they save on their premiums. It’s important to keep in mind that workers’ comp premiums are a large spend for an employer, so any money saved on their premiums helps give them a competitive advantage over their peers. It allows them to use the savings on investments like new equipment or offering better wages to attract more skilled employees – and to retain them.
Additionally, many states offer a formal workers’ compensation insurance discount if a policyholder implements a
workplace safety program that meets certain criteria as determined by the state. This criteria can include elements such as:
- Written safety policy and safety rules
- Safety inspections
- Preventive maintenance
- Safety training
- First aid
- Accident investigation
- Necessary recordkeeping
Breaking Down What Workers’ Comp Carriers Seek in a Risk Management Program
Every company should have a comprehensive risk management program. Some of the initiatives
workers’ compensation carriers will assess regarding an organization’s risk management program include:
Safety Procedures Matching the Organization’s Needs
When developing safety standards, the business should keep in mind their size, complexity and the types of hazards involved in their everyday operations. Their workplace safety training programs can range from informal or written procedures to highly structured policies and hierarchies depending on their specific needs.
Regular Review and Updating of Safety Procedures
Over time, a business’s needs can change. Operations, tasks and equipment evolve, so safety procedures should be reviewed and updated accordingly. Additionally, employees should be required to complete specific training as required for specific tasks, with ongoing training as needed.
Commitment from All Levels and Departments
Both the leadership team and the employees should be involved in safety efforts and safety training. For example,
safety committees should be established with representation from all departments and all employee levels, not just leaders of the company. These committees should have regular meetings, and safety education should be provided on an ongoing basis to all employees.
Enforcement of Safety Rules
The organization’s safety program and commitment levels should permeate the organization as a part of daily work, not simply as a mention in passing or a manual that is read only once when a new employee is hired. For instance, maintain and enforce rules about wearing
personal protective equipment (PPE) when necessary. A specific individual should be designated to be held responsible and accountable for the implementation of all safety procedures.
Post-Accident Procedures
All managers and supervisors should be trained in post-accident procedures, so they immediately know what to do when an injury occurs. Facilitating appropriate medical treatment is of primary concern but they should also be well-versed in any drug testing policies, and the company’s requirements for timely injury reporting to their insurance carrier. Properly investigating an accident or
near-miss accident, and taking steps to prevent similar events, is key. They should also have a
return to work program set in place that includes how to facilitate
modified or light duty to help ensure the injured employee is able to get back to the workplace in accordance with their physical capabilities as determined by the authorized medical provider.
Manage Risks with Loss Control Services from AmTrust
AmTrust’s
Loss Control Department specializes in risk management solutions. We create customized workplace safety programs, identifying specific hazards and offering solutions that fit your organization. We are dedicated to providing the right
resources to create the most effective loss control program for the specific needs of our insureds. For more information, please
contact us today.
This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.