GAWDA Professional Compliance Seminar 1. 2 Workers Compensation Loss Prevention.
-
Upload
angelina-gorman -
Category
Documents
-
view
213 -
download
1
Transcript of GAWDA Professional Compliance Seminar 1. 2 Workers Compensation Loss Prevention.
1
GAWDA Professional Compliance Seminar
2
GAWDA Professional Compliance Seminar
Workers’ Compensation Loss
Prevention
3
GAWDA Professional Compliance Seminar
Safety as a profit center
4
GAWDA Professional Compliance Seminar
• What is the single most important factor to prevent employee injuries and vehicle accidents?
Stop Injuries
5
GAWDA Professional Compliance Seminar
• 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
• Case studies• Fatality investigation• Fingers crushed• Internal audit response…
disappointed• Steel• Pigment manufacturer• Eastern Region… post fatality
Stop Injuries
7
GAWDA Professional Compliance Seminar
• Tommy Brubaker• Machinist • Midnight shift• Lathe• Warnings? Jackets• Accountability?
Case History #1 – Fatality
8
GAWDA Professional Compliance Seminar
• Trailer manufacturer• Punch press operator• Dual actuator buttons• Three fingers crushed• Warnings? • Accountability?
Case History #2 – Crushed Fingers
9
GAWDA Professional Compliance Seminar
• Bhopal tragedy• UCC internal audit• Cleanup• True commitment?
Case History #3 – Audit Response
10
GAWDA Professional Compliance Seminar
• 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
• $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
• 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
• Results…• First year:
• 50% reduction in injuries• 66% reduction in costs• $1M premium reduction
Case History #4 – Steel Company
14
GAWDA Professional Compliance Seminar
• 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
• 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
• How was injury rate so low?• Onsite owner impact, owner
attention• Remote owner… prediction
Case History #5 – Pigment Manufacturer
17
GAWDA Professional Compliance Seminar
• Fatality• New safety consultant• 12 months (training,
investigations, STOP, etc.)• Worst to first
Case History #6 – Eastern Region
18
GAWDA Professional Compliance Seminar
• The maximization of profits comes from the minimization of losses
• Proactive Loss Prevention
Peter Drucker
19
GAWDA Professional Compliance Seminar
• Proactive risk management vs. traditional loss control
• Applies to • Workers’
Compensation• Vehicle Liability
Two Safety Paradigms
20
GAWDA Professional Compliance Seminar
• 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
The Complete Risk Management Program
22
GAWDA Professional Compliance Seminar
• 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
If Common Today
•Poor Planning
•Lack of Training
•Unsafe Conditions
Possible Tomorrow
•On Site Accidents
•Injury/Death
24
GAWDA Professional Compliance Seminar
• 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
• 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
• 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
1. Management leadership2. Assignment of responsibility
and accountability3. Maintenance of vehicles,
equipment4. Pre-employment checks5. Establishment of effective
safety committees and training
10 essential elements
28
GAWDA Professional Compliance Seminar
6. Accident record keeping system7. Medical and first aid systems8. Acceptance of personal
responsibility by employees9. Post loss management activity10. Results monitoring and
program evaluation
10 Essential Elements
29
GAWDA Professional Compliance Seminar
• 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
• 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
• How to measure the company’s real safety performance?
• Whose performance?
How to measure…
32
GAWDA Professional Compliance Seminar
• 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
Industry Comparison
34
GAWDA Professional Compliance Seminar
• How to measure your real safety performance?• Long term – W/C rate
• Professional, unbiased numerical appraisal
How to measure…
35
GAWDA Professional Compliance Seminar
• 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
Unsafe Behaviors/Unsafe Acts
Fatalities
LostTime Cases
Recordable Injuries
Medical Visits/First Aid Cases
37
GAWDA Professional Compliance Seminar
• 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
• 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
• 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
• Control your frequency by stopping accidents• Accountability• Measurement• Training• Overt commitment
W/C Insurance - Frequency
41
GAWDA Professional Compliance Seminar
Dupont STOP Program
42
GAWDA Professional Compliance Seminar
STOP For Employees Concepts
43
GAWDA Professional Compliance Seminar
STOP Safety Cycle
44
GAWDA Professional Compliance Seminar
• 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
• The maximization of profits comes from the minimization of losses
• Proactive Loss Prevention
Peter Drucker
46
GAWDA Professional Compliance Seminar
Q&A