Workplace Safety

The conditions enumerated in a workers’ compensation policy define rights and obligations to the parties. They outline governance of the day to day relationship between a carrier and an insured.

Typical conditions include:

1. The first named insured is solely responsible for all insured parties concerning premium payment, communications such as cancellations, refunds, or additional audits.

2. The insured cannot transfer rights or duties to a third party without written consent from the insurance provider. For example, in the case of a merger of two companies, the selling company cannot assign coverage to the buying company, or transfer a favorable experience modification.

3. Policies are considered as one year terms for administrative purposes. Premium rates, modifications or any administrative concern is handled as though the term were one year. Three year policies are fairly rare in the modern era of workers’ compensation. Fixed rate three-year policies have a modifying clause to eliminate this condition. Three-year retrospective plans are calculated on an annual basis, and as such, have lost their appeal to potential buyers.

4. Inspections. The insured must allow inspections of premises and operations so the insurance company can assess safety and loss control concerns.

5. Cancellation. Policies can be cancelled, for example non-payment of premium, under conditions outlined by the state authority. Usually, the cancellation condition includes a front end period, like two months, for the insurance company to decline the risk. The carrier usually must cancel at least some minimum time prior to renewal or the policy automatically renews. Of course, non-payment has a statutory warning and time to correct.

These conditions are important to understand and honor. They protect the insured and the carrier so the governance of the policy is smooth. Typically, conditions establish a mutual respect between the insured and carrier. The right to inspect but the obligation to report back, and offer advice. Mutually beneficial management.

Exercising regularly. Create a fitness culture in your company, maybe provide gym benefits. For back pain prevention, weight control, abdominal muscles and stretching are key.

Stop smoking. Smokeless workplaces have gained in popularity for environmental reasons, but an additional consequence is fewer back issues.

Take a break. Repetitive motion or long periods of idleness create back stress. Sitting for an hour or lifting for an hour can cause back pain. Bending and twisting should be avoided. Bend at the knees and pivot, don’t twist the back, particularly when lifting.

Take a break while driving too. A short walk awakens your mind and neutralizes the cumulative effect of road vibration on your body.

Proper posture. Whether driving, lifting, or completing repetitive tasks, use the proper posture to protect your back.

Safe Lifting. The lower back is particularly susceptible to injury and pain from poor lifting techniques.

* Lift with your legs. Squat and lift rather than bending forward and lifting.
* Proper posture means a straight upper back with a natural lower back arch.
* Test load weight. Push the load with your foot first. Do you need a helper?
* Lift close to your torso, waist level.
* Do not twist your back while carrying anything.
* Use devices like dollies, forklifts, or conveyors.

Back injuries occur in the morning more frequently. Stretch and start light. Get your back ready for more strenuous work.

Back injury prevention requires awareness, so train your employees properly. Those workers who will likely lift should do stretching exercises first.

Design your operation for lighter lifts. Create smaller loads of frequently purchased, used or stored. Don’t store heavy objects higher than the waist.

Pre-hire qualifying should include assessing the weight which can be safely lifted and carried by the individual. And, use a mandatory weight restriction for lifting for all employees.

One truth about Worker’s Compensation (WC) insurance premiums is that it is an expense that affects your profitability. Every business does its best to limit these expenses and there are three simple things to do to lower your worker’s compensation premiums.

1. Shop Around

Like everything your business buys, comparison shopping helps to keep premiums lower. Certainly, much of your premium is determined by the number of employees you have, your claims experience and your business’ risk exposure. But, associations you belong to often offer cheaper worker’s comp insurance than the open market. So shop around creatively, get quotes from more than one insurance company – but make sure they are financially sound.

2. Prevent Workplace Injuries and

3. Manage Injuries in the Workplace When They Happen

Why do tips number two and three go together? To understand, you first have to know how injury claims affect your worker’s comp insurance premiums. Worker’s Compensation employment classifications and base rates are determined by an organization known as the National Commission on Compensation Insurance (NCCI).

Your annual premium comes from the NCCI calculation and your estimated payroll annual payroll expense. Of course, if you have been in business awhile, debits and credits adjust your rates based on your business’s injury history and claims costs.

Experience Modification Factor

Insurance professionals refer to this as the E-mod. The NCCI calculates the modifier if your premium payments exceed a certain threshold for the most recent two years. The calculation compares your claims (costs) and injury history for the past three years to the expected injury rates for your employer classification. For example, your 2015 premium uses 2012, 2013, and 2014 injury history and losses to calculate the modifier. If your history is better than average your E-mod is lower 1.0, companies with worse than average losses have an E-mod that is more than 1.0. The higher your E-mod is over 1.0 the more expensive your WC premiums are.

How much you pay for an injured worker’s claim is another part of the calculation. By managing workplace injuries the intent is to return the employee to work as soon as possible, to avoid disability costs. For instance, an employee who works in a warehouse hurts his back and cannot do his or her job for six months. Physical therapy costs are unavoidable, but reassigning the employee to a desk job avoids paying disability. Providing quality contracted care for employee work related illness or injury also helps to manage an illness or injury. Your carrier can help you with these programs.

Since worker’s compensation is a cost that is risk related, institute safety programs and supply correct safety equipment to your workers as part of a total effort to control WC premium premiums.

Offices are not as safe as many people believe. There are many injuries and illnesses that workers suffer in an office environment. The amount of paper, cloth chairs, and drapes are fire hazards. Wastebaskets or chairs in hallways or walkways in the office cubicle setting are tripping hazards. Wet break room or bathroom floors cause slip and fall accidents leading to an injury. Computer users, just like others who do constant repetitive hand motions often develop carpal tunnel syndrome. In addition, office automation promotes employees sitting at their desks for long stretches of time.

With these and many other situations giving rise to injury or illness, how can an employer of office workers help prevent office work related claims? There are many preventive measures to take for you and your employees.

Ergonomics

Ergonomics is the use of furniture or equipment designed to help workers get the correct range of motion or position while working. For instance, desk workers have chairs that adjust to the proper height, and tilt for worker comfort and good posture.

Computer keyboards slant slightly down, and users have wrist rests for their hands when using a mouse or typing on a keyboard.

Employees who sit all day need breaks to stretch their muscles. Stretching relieves muscle fatigue and a change in position prevents disorders such as carpal tunnel.

Remove or Repair Safety Hazards

Teach employees that desk and file drawers are not left open when not in use. Aisles and walkways must not have chairs, wastebaskets, or any obstacles in them. Use extension cords sparingly and then place them behind furniture next to walls to avoid them, causing workers to trip. A worker who spills something in the break room should immediately wipe the spill up. Employees should report other dangerous conditions to a manager.

Maintenance should insure that lighting works in all walkways and stairwells so that workers see and avoid falling hazards. Loose floor tiles and frayed carpeting need immediate repair — until finished, place floor stanchions that say “caution” around the area of disrepair.

Designate a periodic “inspection” time for employees to look around the work areas and adjacent space for safety hazards.

Management and employees who work together to find hazards before they cause injuries have excellent safety records. Employees are happy, more productive, and feel more loyalty to their employers.

Did you know that the average work related car crash costs $74,000. That includes medical bills and time off from work. It does not include the emotional turmoil of the worker, his or her family, or the employer.

If you drive as part of your job, or you employ people who must drive as part of their work, following are five tips to share with them so that they drive more safely.

Focus on Driving

Each time you are behind the wheel, the most important thing you do is keep your focus. If your work includes driving or operating heavy equipment focus is even more important to you. Taking a sip of coffee, a bite of a sandwich, or adjusting the radio tuner steals your focus long enough to involve you in a crash that injures you and others.

Stay Alert

In addition to staying focused, you must stay alert. According to the National Sleep Foundation, 60 percent of American Drivers admit they drive while drowsy. Even scarier, is that 37 percent of United States drivers admit they have fallen asleep behind the wheel. Drowsy driving is dangerous, especially so for long-distance truckers, delivery people, and others who spend a great deal of time behind the wheel for work. If you do become sleepy, get off the road and take a nap. If it happens often talk with your employer about a shift change.

Do Not Use Your Cell Phone

Cell phones, like alcohol, and driving do not mix. According to the United States Centers for Disease Control, cell phones have responsibility for more than 1,000 traffic deaths each year, as well as 24,000 injuries. Because of the known dangers of using a cell phone while driving many states have outlawed using one while driving, a few even if it is hands free. In 2010, laws passed that prohibit texting while driving.

Recognize Impaired Drivers

Whether sleepy, high on drugs or drunk, the behavior of an impaired driver is consistent. They tend to vary their speeds, drive very slowly, weave and swerve. If you see some a person driving this way, keep your distance. If possible, pull off the road and call the police. You just might save the driver and innocent people from injury or death.

Use a Global Positioning Device (GPS)

Use a GPS with voice navigation. These devices can plot your route and using an artificial voice give you directions as you drive. No longer is it necessary to drive and try to read a map – a very unsafe practice.

Use these tips and travel safe!

If you want to find dangerous chemicals in the workplace, you either need to read obscure technical journals with language and jargon that is impossible for lay people to understand. Your other option is to look at the Manufacturer’s Safety Data Sheet (MSDS) that under the Occupational Health and Safety Administration rules and regulations every employer keeps for hazardous chemicals. Here too, the information is usually in highly technical language, inaccurate and incomplete. Hazards for long-term effects such as reproductive system damage, cancer and other injuries or illnesses are usually lacking from the MSDS.

While having every chemical’s MSDS on hand complies with the letter of the law, out of date or inaccurate data is often worse than no information.

Getting the valuable information needed by employees about the substances they come into contact with shows them that your business has concerns for their health and safety. Here are some tips on how to find out which materials are hazardous and what to do if an employee has dangerous exposure.

Starting with the MSDS sheets that manufacturers supply under OSHA find the hazardous materials your employees have exposure to.

Review and evaluate scientific literature to understand the possible implications of toxic chemicals on employee’s and your own health.

If the task is beyond your or your employees’ abilities, contact your vendors and tell them the MSDS has insufficient information. You want them or the manufacturer to give you clear, easy to understand information about the hazards of immediate and long-term exposure as well as preventive measures to take.

The United States Department of Health and Human Services runs the Agency for Toxic Substances and Disease Registry. On their website is a section called ToxFAQs that has a lot of information on hazardous materials. It is free and available in both document and PDF form. Every substance in their directory has a summary that is a quick and easy guide. It is available in both English and Spanish and is a wonderful information source.

Workers’ compensation premium calculations begin with payroll, either estimated or audited. But for the purpose of this discussion, let’s assume perfect knowledge of the annual payroll amount and sources.

Regular payroll is divided into classification codes. Less risky jobs, like clerical operations, enjoy a lower premium rate than higher risk jobs like bridge painting.

Consult with your professional agent for help in auditing your class codes for accuracy. Time and technology can change your code. Recheck them every three years at a minimum. You can go back three years to adjust audits and receive return premiums.

Premium for overtime payroll can be reduced if overtime pay is kept separately. Auditors will discount the overtime payroll substantially, keeping your premium lower.

Consider subcontracting more hazardous operations. For example, many manufacturers keep a fleet of delivery vehicles. Review the cost and benefits of in-house shipping versus common carrier service. Bad claims experience with one driver can adversely affect the experience modification of one hundred factory workers. Loss control for the manufacturing staff is much more straightforward than the randomness of events on the road.

Isolate potential operations which are more likely to create loss issues. Loss control the operations thoroughly or transfer the risk by subcontracting.

Insist subcontractors provide their own insurance by keeping a certificate of insurance on each subcontractor. Auditors pick up uninsured subcontractors and charge premium accordingly.

Consider all subcontractors: HVAC repairs, caterer, installers, contract electrician, temporary help agencies, any independent contractor or hauler.

Prepare for audits constantly. Compile a list of certificates of insurance and have them handy for the auditor.

If workers’ compensation charges premium based on payroll, are volunteers covered? And how is premium charged?

Each jurisdiction, that is each state, has its own rules. This post will give general rules and background.

Municipal volunteers, for example: firemen, emergency medical technicians, some police or crosswalk guards, and board members, generally receive coverage under state workers’ compensation laws.

Some states require workers’ compensation for emergency responders such as the Red Cross or Salvation Army volunteers.

The definition of remuneration differs from state to state. Cash payroll is the sole determinant sometimes, and room, board, meals, or free services count in other cases.

Of course, any claim made is subject to court interpretation of the state statutes.

Businesses should be mindful of their workers’ compensation laws when considering offering an internship or other volunteer labor position. Is experience remuneration? Do you provide a gift, travel, per diem, uniforms, or anything of value to your interns? If so, your state may confer employee status on interns.

Do you want interns covered under workers’ compensation? You have a moral obligation to pay for the cost of injuries on your site. Would you prefer to be sued under your general liability, have a no-fault coverage like workers’ compensation or premises medical payments handle the claim, or offer an accident policy to volunteers?

No matter your standard operating procedure, it pays to have a protocol in place to handle interns and volunteers potential injuries before the claim occurs. Check your state regulations to assure proper definition of volunteer labor.

Workers’ compensation injuries fall into one of six categories, given in their order of severity:

Medical Only – Simple first aid or minor medical services required to tend to this injury type. Most workers’ compensation claims fall into this category – splinter removal, disinfectant and bandage, negative x-ray, or tetanus shot typify these claims. The frequency of these claims, however, most directly affect your experience modification and premium. Frequency is a greater factor than severity of claim.

Temporary Partial Disability – These claims include an element of lost time from work. Typical claims are sprained ankles, broken bones, or perhaps an eye injury. The “partial” disability suggests a change in work duties rather than laying off the job for a period of time. Perhaps a driver works as a dispatcher due to a foot injury.

Temporary Total Disability – Implies time off the job completely. Injuries which do not allow light duty alternatives, such as concussions. The injury prevents working, but only temporarily.

Permanent Partial Disability – Suggests an injury with lasting consequences, but allows the injured to work. Finger amputations, loss of eyesight or hearing, joint problems caused by injuries or occupational disease fall into this category. Usually, the injured is compensated with a prescribed number of weeks pay, and they can return to work.

Permanent Total Disability – An injury so bad the injured will not be able to work again. Double amputations, occupational diseases that affect breathing or sight, catastrophic car accidents typify this group of injuries. These injuries are compensated with a statutory number of weeks remuneration.

Death – Needs no further explanation. Death claims usually pay the statutory maximum number of weeks remuneration.

Study the list. How much is a great safety program worth in this context?

An employee is injured on the job while carelessly texting their buddy. What are your duties under the workers’ compensation law?

First, you must provide for immediate medical care, including first aid, and/or emergency services. Stop the bleeding, get them breathing. If necessary, call 911 or transport the employee to your pre-arranged medical facility, or directly to the hospital emergency room, whichever is appropriate.

Second, begin an initial investigation by gathering the injured party contact information along with witness contact information, and a brief description of the accident. Forward this information to your insurance carrier.

Upon any receipt of legal papers, lawsuits, or information regarding the loss, forward originals immediately to the insurance company. Keep copies for your records.

Cooperate with your insurance company investigation, settlement, court proceedings, or payments. This coverage is no-fault, don’t create procedural issues which can remove that status.

Do not interfere with the insurance company right to recover from third parties. The insurance company will seek subrogation from at-fault drivers, products manufacturers, or others. Allow them to do their jobs. They deal with these situations everyday.

Do not make payments or assume liability unless doing so at your own cost. Remember: this coverage is no fault. Demonstrating obligation creates confusion over statutory benefits.

Okay, so essentially your obligation is:

1. Get medical help quickly and to triage the level of medical services needed for the injury.
2. Report to the company information necessary to initiate a claim and forward legal correspondence.
3. Get out of the way.

Getting back to the texting issue. Not relevant to the claims procedure for this injury, but think about your rules involving employee cell phone use and texting. Employees need to focus on their tasks to stay safe.