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Safety Statistics Shows Failure of Basic Risk Management


Basic Risk Management Failure Shown By Safety Statistics

A recent Safety Statistics article was not kind to basic risk management.  I was reading through a large amount of workers comp publications over the weekend. I came across what to me were astounding statistics on safety and risk management. The survey was produced by Staples(r)

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Staples had surveyed 412 different small businesses with less than 50 employees.

The survey showed that:

  • 70% of all managers knew an emergency communication plan existed in their company
  • 50% of the employees were unsure if a plan existed or said their company does not even have a plan in place
  • 19% of employees thought their company was prepared for a medical emergency
  • Managers were almost 50% more likely than non-managers to be able to locate their company’s defibrillators, eye wash, dust masks, and caution and wet floor signs.

This led me to the following conclusions:

  • Managers are not properly communicating their safety programs to their employees
  • Small companies are not ready to handle emergencies whatsoever
  • These companies are likely going to pay much more in Workers comp premiums if they do not know how to handle a medical emergency.
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There are many safety programs for smaller employers that are free or low-cost such as the Safety and Education Department for the North Carolina Industrial Commission. Almost every state has a department similar to this in state government. They are not OSHA related and do not report companies to OSHA or hand out fines.

One of the most disturbing statistics from the above list is only 19% of the employees feel they are ready for a medical emergency. One of the areas to consider is where does a company transport an employee to for emergencies? Keeping medical control of a Workers Comp claim is a critical key to workers comp savings in emergencies and non-emergencies.

I performed a study a few years ago on how much more expensive is a claim with or without medical control. I found that claims without medical control are 400% more expensive than claims with medical control.

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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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