Managing Workplace Safety to Reduce Costs and Increase Productivity

Transcription

1 Managing Workplace Safety to Reduce Costs and Increase Productivity Presented By Alush Garzon EI, CLCS, AAI Karen Yount, ARM

2 About the Presenters Alush Garzon EI, CLCS, AAI Karen Yount, ARM Studied Engineering at Georgia Tech Former Manufacturing Engineer for a medical device component manufacturer Former Insurance Claims Adjuster Expertise in Commercial Insurance, Workers Compensation, and Employee Benefits for Manufacturers Studied Psychology at SUNY, Fredonia Former Environmental, Health and Safety Manager for Sentry Safe and Pactiv Corporation (Hefty Products) Former Senior Loss Control Consultant for Zenith Insurance. Bouchard Insurance Largest Privately Held Insurance Broker in the State of Florida Founded in 1948 as a Workers Comp Agency 240 Employees We service over 15,000 clients across the US and Internationally

3 Objectives Understanding Comp The financial Impact workplace injuries have on the organizations bottom line What organizations can do to minimize the cost: Post Accident Pre injury Injury Prevention Efforts: formal policies, procedures and performance reviews Foster a safety Culture

4 OK - So Why Do I Care? Workers Compensation claims costs often have a direct correlation to the benefits package or bonus an employee receives Workers Compensation claims create indirect cost issues for everyone (including the supervisor) A safe and organized workplace is also an efficient workplace (safety and profit are not mutually exclusive)

5 Impact of the Experience Modification Rating.80 Ex Mod If the premium is $90,000 the mod would be reduced by 20%. The total would be $72, Mod If the premium is $90,000 the mod would be increased by 20%. The total would be $108,000 A difference of $36,000

6 The Mod is based on losses: 2017 Mod is applied during this policy year Determines the experience modification rating

7 Sample Mod Worksheet Year # of Claims Totals Paid Losses Reserves Mod 1/1/2012-1/1/ $99,839 $99,839 $ /1/2013-1/1/ $72,010 $72,010 $ /1/2014-1/1/ $138,630 $117,668 $20, /1/2015-1/1/ $318,550 $223,623 $94, /1/2016-1/1/ $234,266 $166,296 $67, /1/2017-1/1/ $0 $0 $ /1/2018-1/1/2019 7

8 Lost Time Vs. Medical Only Lost Time Claims - in excess of 7 days of missed wages, benefits must be paid and after 21 days of wages missed, they are also paid benefits for the first 7 days. - Lost time claims costs (medical, lost wages, allocated expenses, etc are all charged towards the experience modification rating. Medical Only Claims - Claims where no lost wages or % of disability/impairments are paid. - Claims costs are discounted when charged towards the experience modification rating. 8

9 Claim Mod Impact Claim Date Medical or Indemnity Claim Medical Paid Indemnity Paid Total Incurred cost 3 yr. Prem. Cost 4/29/15 Indemnity $ $ $10, $20,852 10/31/15 Indemnity $ $224 $ $2,002 10/20/14 Medical $ $0 $ $636 6/21/14 Medical $ $0 $ $444

10 What To Do In The Event Of An Incident Determine the Severity of the Incident Does 911 need to be called? Have the Employee Complete an Incident Report Send the Employee for Treatment Drug test Work Capacity Status Form Complete Supervisor s Accident Investigation Form Obtain as Many Written Witness Statements as Possible Contact the carrier to begin managing the claim

11 Corrected Mod Case Study Steel Frame Manufacturer 1.43 to % decrease in Premium after the policy was issued Medical Component Manufacturer 1.21 to.89 26% decrease in Premium Savings and a refund from the last 2 years 11

12 Prevent Injuries The least expensive claim, it the one that never happened 12

13 Keys to a Successful Safety Program Prevent Injuries Before they occur: Good Hiring Practices Train employees on procedures and written safety rules Holding employees accountable for following procedures Conducting workplace inspections and correcting issues noted Forming a safety team/committee that reviews safety regularly Conduct accident investigations or near miss investigations and take corrective action to prevent the injury from recurring. Implementing an incentive or rewards program

14 Stop the Cycle 14

15 A Good Safety Culture All individuals within the organization believe they have a right to a healthy workplace Each person accepts responsibility for ensuring his or her own safety Everyone believes they have a duty to protect the safety and health of others 15

16 Understanding the Conflicts Between Safety and Productivity Financial Conflict Correcting hazards can cost money Stopping work to conduct an accident investigation or conducting training can cost money Time spent fixing equipment or maintaining equipment is considered non-productive 16

17 Social Conflict The employee that keeps quiet is usually preferred. He just comes in and works and doesn t bother anyone. Taking disciplinary action can be uncomfortable for managers. They don t like to look because they don t want to have to react. 17

18 Measurement Conflict Safety is usually measured in a negative number. We track the number of injuries or failures vs. the number of successes. 18

19 Set New Goals The Safety Budget 19

20 Rewards and recognition Reward behaviors that will lead you to the desired result of fewer injuries: Attendance and frequency of Safety meetings Safety trainings completed on time Hazards identified and corrected Safety orientations completed Safety inspections conducted Safe behaviors observed Safety suggestions 20

21 Top Management Commitment Top managers must be on board. If they are not, safety will compete against core business issues such as profitability and production, a battle that will be lost. Management must understand the need for change and be willing to support it. 21

22 Get Creative Offer a parking spot for the safe worker of the quarter Create a safety dashboard track the behaviors you want to improve Poker runs, fire drills Don t focus on the negative only Communicate, Communicate Change the message if it gets stale Allow employees to submit a Bright Idea

23 Summary 1. Understanding who actually controls the cost of your workers compensation insurance 2. Review the Mod information for accuracy 3. Good post accident follow up and managing claims 4. Good Safety Programs and policies in place 5. Foster a Safety Culture 23

24 Questions and Answers Please feel free to contact: Alush Garzon Bouchard Insurance