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Workers Compensation Safety Programs – Are They Really Worth It?


Workers Compensation Safety Programs – Best Way To Save $$$

Workers Compensation safety programs are always worth the expended funds.   One of the areas in which employers seem to sharply decrease their budgets during economic downturns is safety. As Treasurer of the NC Mid State Safety Council, I can attest to this fact. The number of safety personnel has shrunk heavily in the last few months

Graphic of Employee With Umbrella workers compensation Safety Programs Under The Rain
(c) 123rf.com

One of the main ways to reduce an employer’s E-Mod is with a good safety program. I have previously posted on how safety programs will reduce E-Mods quite a few times. One of the most misunderstood areas of the Workers Comp safety program is the effect on Schedule Debits/Credits.

Employers will sometimes “throw in the towel” on their safety programs if it does not show immediate results. As I have posted very often, the E-Mod system and even the LDF estimations are delayed measurements. An excellent safety program may not show great results for up to four years after it is revamped or established.

The main goal of a safety program is to avoid or reduce repetitive accidents. Repetition is the killer of any decent E-Mod or LDF. The E-Mod/X-Mod system allows for one serious accident. It does not allow for a series of accidents that even cost as little as $5,000.

Businessman Embracing Workers Compensation Safety Programs Dollar Sign

For instance, 10 $5,000 accidents are much more detrimental to the E-Mod/X-Mod or LDF than one $50,000 claim. NCCI and the Rating Bureaus have established that when you have 10 accidents, there is a much higher risk of more than one of those claims becoming very large claims. I agree with this concept.

Safety programs have always been the best way to avoid a large number of accidents in a given period. There are many post-accident loss reduction strategies. Reducing a Workers Comp loss is a very difficult task. The old saying “A loss is still a loss” applies here.

The bottom line is the best way to lower an E-Mod or LDF is the accident that did not happen. Safety programs are very well worth the investment if allowed to work over a longer period.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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