Posts Tagged ‘Workers’ Compensation’

The Importance of an Injury and Illness Prevention Program – Part 1

Wednesday, October 21st, 2009

The absence of an Injury and Illness Prevention Program (IIPP) ranks among the most frequent Cal/OSHA (California Occupational Safety and Health Administration) citations against businesses. Fines for the failure to have an IIPP are upwards to $7,000.  Many California employers are not aware that it is mandated by law to have a written IIPP.  The law (Senate Bill 198) enacted in 1989, and effective on July 1, 1991, requires California employers to develop and implement an IIPP.

In this and upcoming posts we will take a look at eight required sections of the IIPP, along with suggestions that will help you get started in creating an effective safety program. Today, we will look at the first two elements to consider:

1. Management commitment/assignment of responsibilities

A demonstration of safety and health begins with top-level management.  Management’s commitment to safety will set the tone for the rest of the organization.  Appointing a safety captain to be in charge of the program is a great start to demonstrating company-wide commitment.  While the safety captain’s primary role is to ensure that safety work-habits are adopted throughout the organization, they may, also, lead a safety committee comprised of employees representing each department/area of the organization.  Members of the committee can assist the safety captain by executing the organization’s safety goals.

2. Safety Communication system

There are many creative ways that you can communicate the importance of safety to your staff.  They may include:  introducing  your safety program during new hire orientations, include examples of safe behaviors in a company newsletter/company-wide communication, post safety posters throughout your facility or communicate a safety tidbit on a regular basis at a start-up/staff meeting.  Remember, empowering your team to develop creative ideas on how to effectively communicate your safety program will go a long way in motivating them to stay committed.

In our next post, we’ll discuss enforcing employee compliance with the safety plan, how to assess hazards in the workplace, and conducting investigations.

Contributed by: Sara Richards, Senior Loss Control Manager, CPEhr

What is Carpal Tunnel Syndrome, and How Can You Avoid It?

Thursday, September 24th, 2009

A bi-product of today’s computer usage (which includes its limitless capabilities of the keyboard) has resulted in an increase of Carpal Tunnel Syndrome (CTS), caused by repetitive movements, like typing on a keyboard. With the average lifetime cost of CTS, including medical bills and lost time from work, estimated to be about $30,000 for each injured worker, employers must make an effort to recognize the causes, and solutions, of CTS.

Expensive Workers’ Compensation Claims

Workers’ Compensation costs can increase substantially with CTS claims. Within the hand and wrist there is a collection of bones, tendons and nerves. If you flex your hand over and over again, you cause these tendons in your wrists to rub against each other, leading to irritation. The irritation can result in swollen tendons pressed against the median nerve, causing tingling, numbness and eventually significant pain. If the symptoms continue to persist without any precautionary changes, this may cause extensive pain and limited hand use.

Other Causes

CTS is not only caused by repetitive motion, but may be caused by genetics, health/lifestyle and trauma to the tendons. While genetics can’t be changed, an ergonomically conducive environment and proper work habits can reduce the chances of developing CTS.

Preventative Measures

Here are some four simple precautions that may be incorporated:

  • Chairs – Wheeled, adjustable height chairs with armrests are ideal, because you’re able to adjust the back rest of the chair giving custom support to your back. While, the armrest allows you to rest your arms and take weight off of your shoulders.
  • Tables – Choose a table/desk height that allows your arms to sit at a 90-degree angle to your body (27 to 29 inches above the floor is recommended).
  • Wrist angle – Adjust your keyboard height or use wrist rest to align your wrists with your forearms while working. Consider changing your style of keyboard, using a track ball or a different mouse if you cannot achieve this position otherwise.
  • Elbow angle – Raise your seat height if your arm angle is less than 90 degrees. Lower it if it is more than 90 degrees.

To learn more about Ergonomic Programs, please contact CPEhr’s Senior Loss Control Manager Sara Richards at 310.270.9876 or srichards@cpehr.com.

Post contributed by: Ernesto Vera, CPEhr Safety Control Specialist

Does Investing in Safety REALLY Pay? – Part 1

Monday, July 6th, 2009

In tough times, when businesses are hunkering down and trimming the fat, one of the most common questions regarding insurance is, “Should I really invest in safety?” After all, things seem to be going just fine. Sure, you’ve had your share of injuries, but who cares? After all, isn’t that what workers’ compensation insurance is there for?

Most employers would rather spend the time talking to brokers, preparing application packets, and shopping insurance carriers in an effort to find the best deal, than invest one dime in safety.

We thought we should step back for a minute and consider how investing time into creating a safe work environment will have a much greater impact on your workers’ compensation rates than shopping carriers.

A Story of Two Warehouses

Let’s take an example of two warehouses, each with $2 million of payroll. One company – let’s call them Warehouse A – spends 3 months choosing a broker and submitting application packets to half-a-dozen insurance carriers. In the end, it receives bids from two carriers. One offers an average rate of 4.6% for a total annual premium of $92,000. The other offers an average rate of 5%, for a total premium of $100,000.

Not bad – an $8000 savings for a couple months of work. Figuring they were set with a great rate, they neglected their safety program, didn’t conduct regular meetings, and were careless around the warehouse. One by one, the injuries started. First a sprained back, then a slip, and eventually a forklift accident that left a worker paralyzed from the waist down. When it came time for renewal, their insurance rates shot up. Why? Because their Experience Modification jumped through the roof.

What is an Experience Modification? That’s another great question, and you should be sure to know the answer. Stay tuned and we’ll get to it on our next post…

Are You Affected? – Employers Direct Insurance Co. To Leave California

Wednesday, July 1st, 2009

Par for the course in California’s volatile Workers’ Compensation market, another insurance company is exiting the state. Citing intense competition and escalating medical costs, Employers Direct will cease writing new business in California on August 1, 2009.

Read the Press Release here.

Unfortunately, this is nothing new. California has faced a turbulent workers’ compensation market over the past decade, with insurance rates swinging wildly from huge increases in the late 1990’s, to plummeting rates in the mid-2000’s, to rising rates again as we approach 2010. Several large insurance companies have also shut their doors over that same time period, most notably Reliance Insurance Company and  Golden Eagle Insurance Company.

What can you do to protect your business?

You can’t control the workers’ compensation market, but you can control your own company. If you take safety seriously, adhere to the required OSHA guidelines, and diligently manage workers’ compensation claims, you will be in a strong position to negotiate good rates upon renewal. If you ever find yourself in the unfortunate position of shopping for a new carrier, a solid safety track record will make it easy to find a new insurance company willing to take your business.

In our next post, we’ll look at some concrete steps you can take to keep your workplace safe, and ultimately reduce your workers’ compensation costs.

2 Steps Closer to Workers’ Compensation Savings

Monday, June 22nd, 2009

In our last Workers’ Compensation post we discussed 3 basic starters to keep your workers’ compensation costs down. To recap:

  1. Focus on keeping a safer work environment
  2. Shop around to different carriers
  3. Consider working with a Professional Employer Organization

Despite the state-wide increases, insurance companies view the loss history of an individual company before bumping rates. Companies can actually achieve a reduction in rates, even while the state bumps them up.

The Loss Ratio (the ratio of losses paid out versus premiums paid in) is the most important factor in determining rate increases. Even while published base rates state-wide may be increasing, a company with a low loss ratio can still experience a decrease. There are two ways to keep your Loss Ratio low: 1) decrease the FREQUENCY of accidents, and 2) decrease the SEVERITY of an injury when it occurs.

Let’s discuss FREQUENCY:

When reviewing loss ratios, the insurance companies analyze how often injuries occur, and if they are of similar type. Similar injuries that repeat themselves time and again (slips and falls, or back strains, for examples) indicate a weakness on the part of the employer in that area. Improved training and awareness will help reduce the frequency of these injuries. On the other hand, common, unrelated injuries may indicate a general lack of training and give the employer reason to pause and assess their workplace safety on a whole. They should review and update their Injury and Illness Prevention Plan, institute regularly scheduled safety meetings, and implement incentive/bonus program that recognize and reward workplace safety.

In our next post we’ll look at SEVERITY, what it means, and how it can impact your rates.