Reduce Your Insurance ClaimsWritten By Sentry Insurance
Article Date: 02-01-2007
Copyright (C) 2007 Associated Equipment Distributors. All Rights Reserved.
The best way to lower claims and their related costs is to establish a safety program.
Did you know a $600 insurance claim could end up costing your business more than $2,400? It can. Studies have shown that the ratio of direct-to-indirect claims costs is nearly 1:4. While insurance companies cover direct costs of employee injuries, or stolen or damaged property, indirect costs are often overlooked. These costs include lost productivity and reduced revenue, recruiting and training costs, loss of use from damaged equipment and loss of customers caused by the inability to meet expectations or deadlines.
Any business, regardless of size, can benefit from an established and effective safety program. Benefits include greater efficiency and productivity from employees, an improved business image and confidence that state and federal OSHA requirements are met. However, a safety
program's success is greatly dependent on the support received from your management team.
A safety program can't eliminate all risk; but it can help you anticipate risk and lessen the likelihood of loss due to accidents. Effective training and reinforcement can help make safety part of the culture of your business.
Safety Program Essentials
A safety program should consider the safety of customers, salespeople, and outside contractors and should include certain essential activities:
All safety programs require the same basic steps to begin. First, issue a written policy to communicate management's intent and define overall responsibilities for the program. Appoint a safety coordinator to be accountable for the entire program and a safety committee to foster employee involvement.
- Developing and enforcing safety measures
- Training managers, supervisors and employees on workplace hazards
- Conducting periodic and timely safety inspections
- Investigating all workplace accidents to determine cause and implementing corrective measures
- Establishing procedures for emergencies, including medical emergencies
- Designating emergency responders and training them on their duties and responsibilities
- Understanding and complying with required state and federal OSHA standards affecting your business
Adequate resources should be allocated to support the program. And periodic reviews of the program's activities and results should be held to determine its effectiveness.
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