witc safety day

WITC WITC Safety DaySafety Day

March 15, 2012March 15, 2012

The Importance of Safety Programs

Show Me Show Me the Money!the Money!

Scott HubertyNorthwest ChapterAmerican Society of Safety Engineers

HazardsHazardsExisting or potential

conditions or operations that can result in damage to people or property…

HazardsHazardsWhat do hazards look

like?

HazardsHazardsExisting or potential

conditions or operations that can result in damage to people or property…

HazardsHazardsThe Importance of Safety Programs

““Three Three Buttons”Buttons”

RegulatoryMoral

Financial

Show Me Show Me the Money!the Money!

The Importance of Safety Programs

Show Me Show Me the Money!the Money!

The Importance of Safety Programs

Financial

Show Me Show Me the Money!the Money!

The Importance of Safety Programs

Financial

How ya doin’

The Cost of Accidents

• Direct Costs

•Indirect Costs

• Uninsured costs

• Deductibles & expenses

• Fines and litigation costs

• Claim administration

Direct Costs of Accidents

• Equipment damage

• Product damage / delays

• Clean-up time and expense

• Hiring expense to replace worker

• Supervisor time to assist

Indirect Costs of Accidents

Experience Modification

What is an Experience Modifier?

A number that reflects a comparison of your company’s workers compensation claims

history to a statistical average for your industry.

Experience Modification

- This number is adjusted annually and coincides with your policy renewal date.

Experience Modification

Three important features of the Experience Modifier:

1. The significance of the modifier.

2. The timeframe covered in the calculation of the modifier.

3. The impact of individual claims on the modifier.

Experience Modification

1. Understand the significance of the Modifier.

1.00 1.45.65

Experience Modification

2. Understand the timeframe reflected in the calculation of the modifier. ?1.45

1/1/111/1/10 1/1/121/1/091/1/08 1/1/13

Three years of losses

New three-year window

Experience Modification

3. Understand the impact of individual claims on the Modifier.

Two general categories of benefits paid under WC claims:

1) Medical costs

2) Wages (Indemnity)

Experience Modification

3. Understand the impact of individual claims on the Modifier.

When calculating the modifier, claims that are medical-only are reduced by

70%.

Experience Modification

3. Understand the impact of individual claims on the Modifier.

Illustration:

Employee A: $1,000 claim (Medical-only)

Employee B: $1,000 claim

($900 in medical bills, $100 in wages)

Summary

The Experience Modifier is a number that reflects a

comparison of your company’s WC claims history with a

statistical average.

Summary

The Experience Modifier is a long-term measure of your company’s safety success!

SummarySummaryExisting or potential

conditions or operations that can result in damage to people or property…

Be Safe!Be Safe!