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With workplace safety playing such an important role in increasing productivity, reducing turnover, and reducing workers’ compensation insurance costs, companies are flocking to implement new safety programs. With a plethora of training and information available from insurance companies, consultants, and trade associations, why are some companies succeeding in creating a safety culture and some are not?
Like it or not, you pay for injuries. The insurance companies just finances them. In fact, on less severe claim, you will pay them back through an increase in premium 100% up to over 250%! They simply cover the initial costs of the claim so it’s impact on your company is not all at once. The total incurred cost of the claim, total paid & total reserves, are then included in the calculation of your experience mod, which will increase or decrease based up on the costs & type of the claims.
It has been estimated that employers pay almost $1 billion per WEEK in direct costs related to workers’ compensation. What’s even more astounding a great cause of concern is according to the National Safety Council, the indirect costs surpass the $1 billion to a tune of $4 billion per week! Is this really the time to cut the safety budget?
Believe it or not, all of you employers are the biggest resistor of all. Why is that? Studies have shown that a properly developed and implemented return to work process, which includes transitional duty positions, can have dramatic benefits such as decreased employee rehabilitation time and state specific claim cost reductions.
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