Posts Tagged ‘workers’ compensation savings’

Final Steps to an Effective IIPP – Part 3

Tuesday, October 27th, 2009

In our last post, we discussed the importance of the staff’s compliance with a safety program, hazard assessment and correction, and investigations. We can now look at the final three elements of an effective IIPP:

Hazard Correction

Include methods/procedures for correcting unsafe or unhealthy conditions in a timely manner.

Training

Training is important to not only educate, but to reinforce the requirements listed above (1-6). Training should be done at minimum- when new guidelines are established, to all new hires, and for all supervisors. Additionally, training must be done when new hazards are introduced into the workplace and when employees are assigned new job duties that will expose them to new hazards.

Record Keeping

Record keeping is one of the most important elements of your IIPP. It shows Cal OSHA that you not only have written documentation of your safety program, but that your program is being implemented. Records should be maintained for at least a year. They should include records of scheduled and periodic self inspections as well as safety training. Inspection records should include the name of the person that conducted the inspection, the unsafe conditions or practices identified and the corrective action taken. Safety training records should include the employee name or other identifier, training dates, type(s) of training and the name of the training provider. In addition, while recordkeeping is very important, requirements are less stringent for employers with less than 10 employees.

Conclusions

The IIPP is not only a way to save money, but it also reinforces the importance of workplace safety. A positive attitude towards safety from upper management will go far in promoting safe work habits to all levels of the organization. While all eight requirements are listed, each requirement is extensive. If you have additional questions about the eight requirements, please contact CPEhr’s Risk Management Representative to assist you with creating an effective Injury and Illness Prevention Program for your company.

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.