Seems I write a lot on this blog about the experience modification rating, EMR, and how it effects an employers workers compensation premium. Many of these posts are geared towards readers from the construction industry where I often mention work comp claims and their direct effect on the EMR but lets look further ahead. Let’s talk about safety programs, how and where they fit into the whole process.
An employer with an increasing or out of control experience modification rate should not expect an overnight fix! It just doesn’t happen. It can take up to three years before steps taken to control claims today, have a measurable effect reducing an experience modification rate. Yes, I did say steps to reduce claims! You should read that as “the development and implementation of a working safety program!”
An active safety program, designed and implemented by an employer, may have several general goals and may include:
- To Provide a Safe Work Place
- To Reduce On The Job Lost Time Injuries
- To Improve Safe Working Practices
- Implement an Active Return To Work Program For Injured Employees
But a safety program may also have more specific goals, for example:
- To reduce our lost time injuries to 50% of our industry average;
- To reduce our frequency of work place accidents by 50% over a 1 year period;
- To establish an active employee accident review board;
- To achieve our “perfect EMod or EMR” within 3 years!
Do you see the underlying theme here? An active safety program is the place to start controlling workers compensation claims. Claims, translate into injured employees and which are the primary driving factor in workers comp experience rating which has a direct impact on the premium an employer pays for workers compensation insurance!
A safety program is important for all employers in the construction industry regardless of size or number of workers. There are plenty of folks out there selling safety services and who do a good job at it but there are also a great many resources available for free. OSHA is a good place to start. Visit their website. It’s full of helpful data and safety guidelines for many industries. But if your business is construction related, it’s a great place to go.
It’s true, many employers look at OSHA as a bad thing. But those employers who want to make improvements in their EMR and institute a working safety plan should look at OSHA as a great resource.
So, when the goal is workers compensation claim control you must remember, it goes hand in hand with a working safety program. It’s the tool used to get a handle on claims and ultimately control over the EMR. So if you have a current safety plan, pull it off the shelf, dust it off, update it, circulate it to your employees and start gaining control over your ERM!
Be sure to contact our office if you have any questions about your Experience Modification Rate, EMR or Safety Program.
Hope this helps you out!
