Our Safety Consultant Glen Disagrees With Using Mod As Only Bellwether
Our safety consultant, Glen, sent over an article in response to a recent article by me. I always like to hear from the Safety realm as that is where a company can save on Workers Compensation premiums on the front end.
Several weeks ago, an article was written on this blog stating that the experience modifier number (X-Mod) was the single best data element to determine if a company has a good safety program. While I don’t disagree with this statement, I am reluctant to embrace it fully.
When passing judgment on the merits or lack of merits of anything, one must find more than one data point. One item is like a dot on a piece of paper, but if we have three or more data points we can connect them into a meaningful shape.
Here are a few other things to look at in the analysis.
- The number of safety trainings being done each year.
- Does anyone at the company inspect and sign off on the fire extinguisher monthly tags?
- Does the company have an up to date injury and illness prevention plan (IIPP)?
- Does it cover all recognized hazards for that entities industry?
- Do the people working there even know who is responsible for the IIPP?
The law requires this document to name a specific person as the IIPP coordinator. If people in the company knows who the IIPP Coordinator is, chances are he/she is bringing his/her message to them in an effective way.
There are more than a few reasons why a company with a poor safety program may have a low EMR. For example, a small company who has had no claims in the past five years. On the flip side, a company with a stellar safety program may have a poor EMR because they had one large claim. Another problem might be Claims Examiner who over-reserved a claim.
In closing, I think of the expression, “one drop of rain does not make a storm.” In like manner one number is not enough to lead to a solid conclusion.
Please note that any articles written by outside sources, other than James J Moore, are not necessarily the opinions of James J Moore, J&L Risk Management Consultants, or J&L Insurance Consultants,as should be treated as such.
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