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GAWDA Professional Compliance Seminar 1. 2 Workers Compensation Loss Prevention.

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Presentation on theme: "GAWDA Professional Compliance Seminar 1. 2 Workers Compensation Loss Prevention."— Presentation transcript:

1 GAWDA Professional Compliance Seminar 1

2 2 Workers Compensation Loss Prevention

3 GAWDA Professional Compliance Seminar 3 Safety as a profit center

4 GAWDA Professional Compliance Seminar 4 What is the single most important factor to prevent employee injuries and vehicle accidents? Stop Injuries

5 GAWDA Professional Compliance Seminar 5 Overt management commitment When the employees believe that you are committed to their safety, they will stop having accidents…Uncomfortable? Stop Injuries

6 GAWDA Professional Compliance Seminar 6 Case studies Fatality investigation Fingers crushed Internal audit response… disappointed Steel Pigment manufacturer Eastern Region… post fatality Stop Injuries

7 GAWDA Professional Compliance Seminar 7 Tommy Brubaker Machinist Midnight shift Lathe Warnings? Jackets Accountability? Case History #1 – Fatality

8 GAWDA Professional Compliance Seminar 8 Trailer manufacturer Punch press operator Dual actuator buttons Three fingers crushed Warnings? Accountability? Case History #2 – Crushed Fingers

9 GAWDA Professional Compliance Seminar 9 Bhopal tragedy UCC internal audit Cleanup True commitment? Case History #3 – Audit Response

10 GAWDA Professional Compliance Seminar 10 High quality rail road wheels Poor labor relations Emerged from bankruptcy Projection of $1.1 million in workers compensation losses per year. Case History #4 – Steel Company

11 GAWDA Professional Compliance Seminar 11 $38M sales, $3.5M W/C premium Significant evidence: Exaggeration Misapplication of benefits …workers compensation was used in lieu of health or unemployment benefits Case History #4 – Steel Company

12 GAWDA Professional Compliance Seminar 12 The Solution Successful proactive loss prevention program Supervisors trained in accident investigations, modified duty, and profit consequences Safety committee was refocused from complaint evaluation to injury prevention Case History #4 – Steel Company

13 GAWDA Professional Compliance Seminar 13 Results… First year: 50% reduction in injuries 66% reduction in costs $1M premium reduction Case History #4 – Steel Company

14 GAWDA Professional Compliance Seminar 14 PA company bought similar VA company Due diligence – W/C insurance Zero reported injuries True? Case History #5 – Pigment Manufacturer

15 GAWDA Professional Compliance Seminar 15 Facility inspection FX, floor holes, open vats, bicycle chains/gears, housekeeping, machine guarding Owner interview – 0 injuries Case History #5 – Pigment Manufacturer

16 GAWDA Professional Compliance Seminar 16 How was injury rate so low? Onsite owner impact, owner attention Remote owner… prediction Case History #5 – Pigment Manufacturer

17 GAWDA Professional Compliance Seminar 17 Fatality New safety consultant 12 months (training, investigations, STOP, etc.) Worst to first Case History #6 – Eastern Region

18 GAWDA Professional Compliance Seminar 18 The maximization of profits comes from the minimization of losses Proactive Loss Prevention Peter Drucker

19 GAWDA Professional Compliance Seminar 19 Proactive risk management vs. traditional loss control Applies to Workers Compensation Vehicle Liability Two Safety Paradigms

20 GAWDA Professional Compliance Seminar 20 Security Services Grocery Delivery Fleets Temporary Service Employers Restaurants Iron & Steel Manufacturing Hospitality & Healthcare Institutions Welding Gas Distributors Where proactive risk management works?

21 GAWDA Professional Compliance Seminar 21 The Complete Risk Management Program

22 GAWDA Professional Compliance Seminar 22 Loss Control (Traditional Approach) Manages Costs After Loss Experience In Short, Reactive Insurance company responsibility Risk Control (Alternative Approach) Manages Performance Before Experience In Short, Proactive Your responsibility Loss Control vs Risk Control

23 GAWDA Professional Compliance Seminar 23 If Common Today Poor Planning Lack of Training Unsafe Conditions Possible Tomorrow On Site Accidents Injury/Death

24 GAWDA Professional Compliance Seminar 24 Client – Midsize Welding Gas Distributor Problem 30 vehicle units - 6 months 9 preventable accidents 2 non-preventable accidents Solution - A structured program Outcome 0 preventable accidents 2 non-preventable accidents Case Study #1

25 GAWDA Professional Compliance Seminar 25 What made the difference? Commitment! Accountability First Executive Safety Committee meeting – all OK Second meeting – commitment Third meeting - performance Case Study #1

26 GAWDA Professional Compliance Seminar 26 Preventing losses IS possible! Always less expensive than traditional loss control approaches Less equipment damage and downtime Fewer customer issues Professionalism rises Profit is improved Why Practice Prevention???

27 GAWDA Professional Compliance Seminar 27 1.Management leadership 2.Assignment of responsibility and accountability 3.Maintenance of vehicles, equipment 4.Pre-employment checks 5.Establishment of effective safety committees and training 10 essential elements

28 GAWDA Professional Compliance Seminar 28 6.Accident record keeping system 7.Medical and first aid systems 8.Acceptance of personal responsibility by employees 9.Post loss management activity 10. Results monitoring and program evaluation 10 Essential Elements

29 GAWDA Professional Compliance Seminar 29 Systematic accident investigations Major, minor, near miss National Safety Council guidelines for determining preventability Operator and driver/supervisor training Personnel and vehicle safety incentives & communication Discipline & accountability Management Techniques

30 GAWDA Professional Compliance Seminar 30 Humanitarian Less pain Regulatory Compliance Avoid OSHA/DOT hassles, citations Financial Lower costs, liabilities, down time Business/Officer Protection Documentation, manual, program Benefits of Prevention

31 GAWDA Professional Compliance Seminar 31 How to measure the companys real safety performance? Whose performance? How to measure…

32 GAWDA Professional Compliance Seminar 32 Your performance You (owners, line managers) are accountable … or can become accountable Case Study – Temporary Service Employees Case Study – Fraud, Pasadena, CA How to measure…

33 GAWDA Professional Compliance Seminar 33 Industry Comparison

34 GAWDA Professional Compliance Seminar 34 How to measure your real safety performance? Long term – W/C rate Professional, unbiased numerical appraisal How to measure…

35 GAWDA Professional Compliance Seminar 35 How to measure your real safety performance? Short term Non-injury incidents (near misses) First Aid Cases Recordable injuries Lost workday cases How to measure…

36 GAWDA Professional Compliance Seminar 36 Unsafe Behaviors/Unsafe Acts Fatalities Lost Time Cases Recordable Injuries Medical Visits/First Aid Cases

37 GAWDA Professional Compliance Seminar 37 Insurance company structures (policy, rent-a-captive, captive, self) Premiums adjust for 3 years plus 1 Do some insurance companies care about your performance? W/C Insurance

38 GAWDA Professional Compliance Seminar 38 Insurance companies are designed to make more money when you have more injuries Case Study - Rapid City W/C Insurance

39 GAWDA Professional Compliance Seminar 39 Experience Modification Factor (XMod) Frequency – each injury counts as 1x Severity – Lost workday cases count about 10x W/C Insurance

40 GAWDA Professional Compliance Seminar 40 Control your frequency by stopping accidents Accountability Measurement Training Overt commitment W/C Insurance - Frequency

41 GAWDA Professional Compliance Seminar 41 Dupont STOP Program

42 GAWDA Professional Compliance Seminar 42 STOP For Employees Concepts

43 GAWDA Professional Compliance Seminar 43 STOP Safety Cycle

44 GAWDA Professional Compliance Seminar 44 Control your severity by managing the case: Assertive return-to-work Professional medical treatment Trusted doctors (2-way trust) Fight suspected fraud W/C Insurance - Severity

45 GAWDA Professional Compliance Seminar 45 The maximization of profits comes from the minimization of losses Proactive Loss Prevention Peter Drucker

46 GAWDA Professional Compliance Seminar 46 Q&A


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