“Your Complete Outsourcing Employers Solution” Loss Control is Cost Control A Safety Management Presentation By Tri-State’s Risk Management Department Tri-State Employer Services

Risk Management Mission Statement Risk Management Mission Statement Tri-State Employment Services, Inc. (and affiliated companies) Mission Statement for Risk Management (Loss Control, Underwriting & Claims Management) is to develop and maintain an integrated multi-disciplinary program to effectively manage and preserve Tri-State Employment Services, Inc. (and affiliated companies) and our client companies’ resources, assets and liabilities. Tri-State Risk Management

Vision Statement Vision Statement The vision of the Risk Management Department is to: The vision of the Risk Management Department is to: continually improve services to our organization and client companies,continually improve services to our organization and client companies, protect human, physical and financial assets and resources,protect human, physical and financial assets and resources, help maintain a safe and healthy work environment,help maintain a safe and healthy work environment, assist and educate others in meeting regulatory compliance-related responsibilities, andassist and educate others in meeting regulatory compliance-related responsibilities, and promote a risk-conscious climate in a manner consistent with the mission and vision of Tri-State Employment Services, Inc., its affiliated companies and our client companies.promote a risk-conscious climate in a manner consistent with the mission and vision of Tri-State Employment Services, Inc., its affiliated companies and our client companies.

Tri-State Risk Management Industry Types Serviced: Assisted Living HomesOffices Auto MechanicsPainters Car DealershipsPhysician Offices CarpentryPrinting Ops. ConstructionRestaurants Day care CentersRetail Stores HospitalsSchool Bus Ops. IT SpecialistsTrucking Janitorial servicesWarehouse Ops. Manufacturing And many more…

Tri-State Risk Management Is your business at risk ? Is your business at risk ? Human Resources, e.g., retrain/replace employeesHuman Resources, e.g., retrain/replace employees Fixed assets, e.g., damage to equipment/materialFixed assets, e.g., damage to equipment/material Continuity of operations, e.g., investigate incidentContinuity of operations, e.g., investigate incident Market position, e.g., delayed deliveriesMarket position, e.g., delayed deliveries Regulatory compliance, e.g., OSHA, DOT, SECRegulatory compliance, e.g., OSHA, DOT, SEC Financial stability, e.g., decreased revenue /increased expensesFinancial stability, e.g., decreased revenue /increased expenses Liability, e.g., corporate / personal responsibilityLiability, e.g., corporate / personal responsibility Image to employees & public, e.g., news articles, SEC investigations, and competitors derogatory statementsImage to employees & public, e.g., news articles, SEC investigations, and competitors derogatory statements

Tri-State Risk Management Management’s Safety Misconceptions Management’s Safety Misconceptions Internal conditionsInternal conditions –It never happened before! Why do anything? –We’re OK. We have insurance coverage. –Our Insurance Carrier will not increase our costs or cancel our policy! –Our company’s Experience Modification will not be impacted! –We don’t have time to implement safety policies and procedures! –It always happens to the next guy!

Tri-State Risk Management  Management’s Safety Misconceptions (continued…) Production PrioritiesProduction Priorities –No time or manpower to get safety things done –No time for safety meetings; training, etc. –Senior management will not support safety policies and procedures –Safety policies and procedures will cost to much $$$$$ –The “Law” does require companies to implement safety policies and procedures

Tri-State Risk Management Direct Worker’s Compensation Components Direct Worker’s Compensation Components Medical Expenses (Unlimited)Medical Expenses (Unlimited) Disability / Indemnity (Statutory Limits)Disability / Indemnity (Statutory Limits) Temporary Total Temporary Total Permanent Total Permanent Total Temporary Partial Temporary Partial Permanent Partial Permanent Partial Death Benefits (Statutory Limits)Death Benefits (Statutory Limits) Rehabilitation Benefits (Statutory Limits)Rehabilitation Benefits (Statutory Limits) Benefit AdministrationBenefit Administration Legal Costs (Coverage “B”)Legal Costs (Coverage “B”) Defense Costs Defense Costs

Tri-State Risk Management Indirect losses Indirect losses Down time – other employees assisting injured employee, time and expense to investigate accident, and potentially lower employee production performanceDown time – other employees assisting injured employee, time and expense to investigate accident, and potentially lower employee production performance Replacement and training of injured employee(s) – additional overtime expense and or learning curve for new employeesReplacement and training of injured employee(s) – additional overtime expense and or learning curve for new employees Damaged material and equipmentDamaged material and equipment Decreased production goalsDecreased production goals Delayed deliveryDelayed delivery Potential loss of customersPotential loss of customers Loss of profit/salesLoss of profit/sales Increased expensesIncreased expenses OSHA finesOSHA fines

Tri-State Risk Management Indirect losses (Continued…) Indirect losses (Continued…) There are as many as 100 ways indirect loss is incurred with each accident.There are as many as 100 ways indirect loss is incurred with each accident. Total Indirect Loss = 4 to 10 x Total Direct LossTotal Indirect Loss = 4 to 10 x Total Direct Loss The proof is too costly and time consuming to learn from experience

Tri-State Risk Management Human behavior control Human behavior control Stress importance of safety as a way of doing the job – Management MUST lead by example.Stress importance of safety as a way of doing the job – Management MUST lead by example. Establish and enforce safety rules and regulationsEstablish and enforce safety rules and regulations Provide awareness and trainingProvide awareness and training Diligent managerial supervisionDiligent managerial supervision Unsafe act inspections (Job Safety Analysis)Unsafe act inspections (Job Safety Analysis) Consider incentive, award / rewardConsider incentive, award / reward

Tri-State Risk Management  Loss Control Services Include: Developing or increasing the effectiveness of safety program elementsDeveloping or increasing the effectiveness of safety program elements –e.g., Company Policies and Procedures, Accident Investigations and self inspectionsInvestigations and self inspections Safety committee roles and activitiesSafety committee roles and activities Early Return to Work Program or Modified / Transitional Duty PositionsEarly Return to Work Program or Modified / Transitional Duty Positions

Tri-State Risk Management  Loss Control Services: (Continued) Accident InvestigationAccident Investigation – Accident Trending – Unsafe Acts/Conditions – Accident Loss Leaders  NOTE: Too many accident investigation reports falsely show the main cause to be “employee carelessness.”

Tri-State Risk Management  Loss Control Services: (Continued) Regulatory ComplianceRegulatory Compliance –Occupational Safety & Health Administration (OSHA) (home page) –Department Of Transportation (DOT) (home page) –California Division of Occupational Safety and Health(DOSH) or Cal/OSHA –California Division of Occupational Safety and Health(DOSH) or Cal/OSHA –Environmental Protection Agency (EPA) (home page) –And more… the law! it's

Tri-State Risk Management Hazard Assessment: Inspection and Evaluation Procedures Hazard Assessment: Inspection and Evaluation Procedures On-site facility surveysOn-site facility surveys Life Safety (NFPA 101)Life Safety (NFPA 101) Machine Guarding (OSHA ) Point of Operation Guards (OSHA )Machine Guarding (OSHA ) Point of Operation Guards (OSHA ) Personal Protective Equipment (OSHA )Personal Protective Equipment (OSHA ) And more…And more…

Tri-State Risk Management Tri-State Risk Management Specialized Surveys Specialized Surveys ErgonomicsErgonomics Industrial Hygiene, Indoor Air QualityIndustrial Hygiene, Indoor Air Quality Occupational HealthOccupational Health OSHA-Type surveysOSHA-Type surveys And more…And more…

Tri-State Risk Management Assist in developing effective safety program elements: Assist in developing effective safety program elements: Emergency Action Plan (OSHA )Emergency Action Plan (OSHA ) Disaster RecoveryDisaster Recovery Bloodborne Pathogens (OSHA )Bloodborne Pathogens (OSHA ) Violence in the Workplace (OSHA 5(a)(1))Violence in the Workplace (OSHA 5(a)(1)) Hazardous Waste Operations and Emergency Response Standard (OSHA )Hazardous Waste Operations and Emergency Response Standard (OSHA ) Hazard Communication (OSHA )Hazard Communication (OSHA ) Confined Spaces Policy (OSHA )Confined Spaces Policy (OSHA ) Respiratory Protection Policy (OSHA )Respiratory Protection Policy (OSHA )

Tri-State Risk Management Assist in developing effective safety program elements (Continued…) Assist in developing effective safety program elements (Continued…) Hearing Conservation Program (OSHA )Hearing Conservation Program (OSHA ) Stairway and Ladder Safety Fall ProtectionStairway and Ladder Safety Fall Protection Forklift OperationForklift Operation Scaffolding/Aerial Lift SafetyScaffolding/Aerial Lift Safety Excavation SafetyExcavation Safety Hot Work Safety PolicyHot Work Safety Policy Electrical SafetyElectrical Safety CPR & First AidCPR & First Aid Driver Safety PolicyDriver Safety Policy And more…And more…

Tri-State Risk Management  Emergency Action Plan OSHA Subpart E: 29CFR (a) Authority and responsibility Early warning (alarms) and communications Emergency response plan / evacuation Designated evacuation team – trained Rescue; medical duties - designated employees

Tri-State Risk Management Training Methodology Training Methodology Classroom LectureClassroom Lecture VideotapeVideotape Computer, CDComputer, CD WebinarsWebinars News LettersNews Letters Professional PublicationsProfessional Publications

Tri-State Risk Management Let’s do it ! Let’s contact Tri-State now! Loss Control is Cost Control!

Tri-State Risk Management Contact Us Contact Us –Phone: –Fax: Phillip Bok, CPCU, CWCP, CFSA, CIPA, APA, ARMPhillip Bok, CPCU, CWCP, CFSA, CIPA, APA, ARM Vice President of Risk Management & Insurance Operations Vice President of Risk Management & Insurance Operations Marvin Tricanowicz, Loss Control ManagerMarvin Tricanowicz, Loss Control Manager “Your Complete Outsourcing Employers Solution”