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Safety Program Evaluation Secret – Takes 5 Minutes Maximum


Internal Safety Program Evaluation From A Non-safety Professional

Computer Safety Program Evaluation Hand Gesture

My safety program evaluation starts with a very simple process.   This secret method has been used by myself and a few other non-safety professionals to examine a company’s safety program.   Please remember this is from a premium audit, claims handling, and claim reserve expert.

I did receive a lifetime achievement award by the North Carolina Industrial Commission Safety Department.  That was for my volunteer work to a local Safety Council, not my safety expertise.

The method is one that I give away only to Risk and Safety Managers when I do presentations on the subject.   I stop first at the safety manager’s desk (can be on the phone or by email also).  I ask the safety manager – What is your E-Mod or LDF (Experience Modification Factor or Loss Development Factor).   The Loss  Development Factors are calculated for Self Insureds.   If you are self insured and do not have one, consult with an expert (such as J&L) to stop operating in the dark.

The responses  I receive are from very bad to excellent are:

  1. That is not my area – very bad – operating in the dark
  2. I do not know – bad, but not as serious as #1
  3. The LDF or E-Mod is X but I am not sure how it was calculated – well, at least they knew the number
  4. I have the E-Mod Sheets or LDF calculation right here, but I do not know how they calculated the number – at least they asked for the report. 
  5. #3 or #4 above and the Safety Manager asks me if I know how it was calculated – cares about the number
  6. The Safety Manager knows the number and how it was calculated, and what accidents caused the number to be where it is at the present. – Wow, impressive
Man Safety Program Evaluation Whispering

The #6 Risk or Safety Manager situation rarely occurs.  In my five minute Safety Program evaluation, I  become concerned with response #1 or #2 from the above list – why?

The E-Mod or LDF represents that company’s safety program.  These two factors produce hellish results often for Safety and Risk Managers.   As with a personal credit report score, your company has one number that represents your efforts to provide a safe workplace.

Is it often unfair  –  of course, but so is your personal credit score.  Running a safety program without knowing the how and why of that score is like trying to apply for a mortgage and not knowing your credit score.    You may end up with a tragic surprise.

Over the past twenty years, companies have terminated Safety and Risk Managers even though their current great efforts reduced the E-Mod or LDF but not in the current timeframe. 

Safety/Risk Managers – listen up -you are judged on  what happened four to 10 years ago when you were not even in charge of safety or Risk Management  Once again, you are likely being judged on data that you are not responsible for overall.  

Woman Safety Program Evaluation Moving Boxes

Look back at #1 and #2 – those forecast a company operating in the dark.  Schedule Rating Factors come into play.   You can look that one up in the articles – use the Search Box above on the right or follow the link.  Schedule Rating Factors operate in the present.  E-Mods X-Mods or LDF’s operate in the past.

If a company or organization Senior Level Management asks me to evaluate their Safety or Risk Management Program on a brief basis –  I ask – what is your LDF or E-Mod / X-Mod?   The nature of the beast appears without a full evaluation of the current loss situation such as our Synth-Mods(c).

People chuckle at my Safety Program Evaluation sometimes, but not for long.

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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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