Workers compensation insurance is one of the largest cost drivers for staffing agencies. It can make the difference between one agency being able to fill a position profitably, and another losing money on the same deal. Fortunately, many proven strategies exist to control workers compensation costs. In this letter, we will discuss how to reduce claims.
One of the largest influences on workers compensation costs is your company’s claims history. Preventing claims should be a strategic initiative of every staffing agency. In addition, reducing the likelihood of injury is simply the right thing to do. Follow a three-step process of 1) Assess, 2) Address, and 3) Enforce.
Assess
Identify the risks.
Safety Inspections
Regular safety inspections are a simple means to ensure your employees are working in a safe manner and in a safe environment. Inspect each workplace prior to filling positions at it. Even if filling a position for an existing client that is opening a new location, make no assumptions. Require a thorough safety inspection.
Safety Inspector
The person performing the safety inspections should be aware of the hazards normally associated with the industry. For example, it would do little good to send someone only familiar with the hazards of the healthcare industry to a construction site. The inspector should be trained to look for hazards and ensure they are fixed before positions can be filled. For smaller agencies, this task will likely be a part-time position. Larger agencies hire a full-time safety manager who handles inspections and reviews claims to determine adjustments to prevent recurrence. The savings on insurance premiums will greatly outweigh the money spent on these efforts.
Address
Safety Plan
Maintaining a written and documented safety plan for your business is a huge step toward prevention. Don’t relegate this responsibility to your clients. Their safety plan should augment your own, not be a crutch upon which you lean. Don’t have a safety plan? Your Bankers Insurance agent can provide you with safety plan templates for many industries to get you started. We can also provide additional safety materials to aid in claims prevention.
Toolbox Talks
Keeping safety in the mind of your employees is critical to reducing accidents. Regular safety chats, termed toolbox talks, will help in this. Bankers Insurance can provide ready-to-print materials for these talks.
Proper safety equipment
For each job filled, determine what safety equipment is appropriate.
- Steel-toed boots have saved thousands of toes and millions of dollars of claims expense.
- Back injuries are some of the most common, most expensive, but most easily preventable. They can be debilitating to the employee and cost hundreds of thousands of dollars to treat. If the job requires lifting, provide employees with back support belts.
- Proper eye protection is inexpensive and practical. If working outside, sunglasses can protect eyes from debris and from harmful rays.
- Do your jobs require work in dusty conditions? Cutting stone or block? Sawdust? Work-related respiratory ailments and disease are easily preventable with proper respirators.
- If the environment is loud, provide earplugs or muffs.
Training
Never assume someone knows how to safely perform a job. Train employees on:
- Proper use of tools, including safety devices.
- How to use safety equipment.
- How to lift properly. How and when to team lift.
Enforce
Re-inspect
Job sites can be altered. Working conditions vary over time. The environment changes. Re-inspect periodically to ensure a safe working environment is maintained. Pay attention to whether your employees are using the safety equipment and following proper procedures.
Noncompliance
There will be certain employees who will passively non-comply. Even after training and warnings, they will stubbornly continue to lift incorrectly or operate machinery without safety guards. Expect it, but don’t accept it. If they are endangering others, correct them immediately. Fire them if they become a repeat offender. If they are only endangering themselves, resist the temptation to be non-confrontational. If they hurt themselves, even due to their own negligence, the claim will still go on your policy and increase your rates.
If a claim occurs, learn how to reduce the claim impact by 70%.
Temporary Staffing Agency Insurance
For more safety information, contact your Bankers Insurance agent. Not a client of ours? Let us compete for your business. Bankers Insurance not only delivers quality insurance products at competitive prices, but we provide our clients with an entire suite of Tools and Resources to help them manage their business more profitably. Each one of our clients is assigned a personal agent in our office. Give us a call at (877) 606-1375 or email us at sales@bankersinsurance.net.
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