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Workers Compensation Risk Control: Strategies to Manage the Risk of Workplace Accidents

Direct costs (medical payments and compensation that are mostly paid by insurance) are just the tip of the iceberg when determining the total cost of Workplace Accidents. Because they are difficult to measure, indirect costs are easy to ignore. However, OSHA estimates that indirect costs can actually run between 1 and 4.5 times that of direct costs, which can be a significant amount.

Indirect Costs: Uninsured and Paid Out-of-Pocket

Lost time by injured worker
Lost time by fellow employees
Supervisor’s time to investigate
Training a substitute worker
Poor efficiency due to break-up of crew
Hiring costs
Overtime to make up production
Failure to meet deadline/fill orders
Damage to tools and equipment
Damage from accident: fire, water, chemicals, explosives
Loss of good will
Loss of production
Overhead costs while work disrupted
Downtime

Fortunately, the Ware Company has resources to help you manage both the direct and indirect costs of job-related accidents.

RISK MANAGEMENT STRATEGY	WARE COMPANY/CARRIER RESOURCES
Hiring the right kind of employee	Preferred pricing on background checks, credit reports, employment verification
Risk assessment and planning	Surveys to identify workplace-related hazards, and customized risk control programs Analysis of loss information to identify trends Industrial hygiene surveys (noise, air quality, ergonomics) Emergency preparedness plans
Maintaining a Safe Workplace	Safety training for employees and supervisors, including the OSHA Outreach 10-hour program; Assistance in developing and training safety committees; Participation in/evaluation of safety meetings Drug-free workplace programs An online resource with reference materials, tools and applications
Being known as a Fair Employer	An online resource to minimize your exposure to allegations of wrongful employment practices through access to model HR forms, Web-based training and articles.
Having a Healthy Workforce	A provider of “onsite” wellness coaching with a proven ability to reduce health risks in your employee population
Getting proper care for injured employees	Treatment by a network of medical professionals experienced in occupational injuries and committed to controlling your costs
Helping Injured Workers get back on the job	Effective Return-to-work programs

The federal Occupational Safety & Health Administration’s (OSHA) “Safety Pays” program helps companies estimate the direct and indirect costs of accidents. To try OSHA’s calculator, visit: osha.gov/dcsp/smallbusiness/safetypays/estimator.html

Information reference: Harleysville Insurance Employer’s Guide to Preventing Accidents and All the costs that Come with them.