It’s true that your workers’ compensation insurance and business owners policy (BOP) are designed to protect you in the event that an employee gets injured on your property, but did you know that each time a claim is made against your insurance, your premiums are likely to rise? That’s especially true with workers’ compensation coverage.
In today’s litigious society, workers’ compensation insurance has become an absolute necessity (in addition to being legally required in most states). And, the reality is that it’s often a business’s largest insurance expense. So, the question becomes:
How do you minimize the risk of claims against your workers’ compensation policy – and better protect your employees in the process?
4 Steps Toward Building a Culture of Safety
Regardless of your business model or industry, there are steps you can take to begin building a culture of safety within your company – centered around a well-developed risk mitigation plan.
1. Evaluate Your Risks
Reducing the risk of injury (and, ultimately, workers’ compensation claims) in your company starts by understanding your everyday vulnerabilities. Begin with an analysis of past incidents and close calls – looking for trends and patterns. Is one division, team, or shift of workers experiencing more injuries than others? Are there more incidents during specific time-periods? This process helps you identify any high-risk aspects of your operations that require a closer look.
2. Develop a Risk Mitigation Plan
There are two major factors that play into a risk mitigation plan’s success. First, the solutions need to target the actual problems, which is why the first step is always to analyze your vulnerabilities. Second, it needs to have company-wide buy-in. As you start to develop strategies for reducing hazards and increasing safety, consider involving your management team early in the process. After all, the management team will be integral in implementing the proposed changes, and their early involvement increases the chances that they’ll truly believe in the final plan.
If your evaluation revealed a large number of risks, then it’s important to prioritize your efforts and look for ways to maximize your resources. Focus on the greatest threats first, and brainstorm solutions – both in process and policy – that would have the greatest impact on employees’ behaviors and their commitment to creating a safe work environment.
3. Put the Plan in Action
A risk mitigation plan does nothing for lowering workers’ compensation claims if it simply sits on a shelf. The goal is to have your new plan become a part of everyday life for employees and supervisors. Begin the implementation process with company-wide communications about the changes and the reasons behind them – but don’t stop there. An implementation strategy also requires you to train your teams and commit to ongoing reviews.
4. Reevaluate and Readjust the Plan
As your business environment evolves, so should your risk mitigation plan. Ultimately, it should be a “living document” that is regularly evaluated and updated. Monitor the plan’s impact in reducing injuries and workers’ compensation claims. If the results aren’t living up to expectations, it’s essential to identify why that is. It could be a sign that employees aren’t enacting the new policies/procedures, that the plan didn’t actually solve the root issues, or that new risks have emerged and need to be addressed.
Of course, building a culture of safety into your company isn’t simply about reducing the cost of your workers’ compensation insurance (although that is a major benefit). As your business environment becomes safer and you celebrate your team’s safety successes, you’ll find you’re also creating a more productive, more engaged workforce.
We Can Help You with Your Risk Management and Workers’ Compensation Needs
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
