Workers Comp Safety Programs – One Of The Big Justification Secrets
Most workers comp safety programs have been reduced or cut back to a minimum.
As the economy has tanked, companies such as yours are looking for ways to save on workers comp safety programs more than ever.
I have seen many blog posts and heard many discussions where everyone equates safety and the E-Mod. However, there are discounts or debits that can sway your Workers Comp premiums up to 50% (+25% or -25%).
The discount or debit (egad!) can be up to 25% and is directly related into your safety program. Instead of making up a simulated schedule, I will use the state of Pennsylvania’s schedule of debits and credits. I have noticed that the Scheduled Debits and Credits are almost the same for each state.
Many Risk Managers and Safety Personnel Departments are being scaled back in this economy. Look below to see what safety and Risk Management can bring to the table, so to speak.
Safety and Risk Management may help your company’s E-Mod, but there is also a possible 50% swing in your Workers Comp budget. As they say, the proof is in the pudding. Please refer to the pudding below. I highlighted a few things in the schedule.
|RISK CHARACTERISTIC||ALLOWABLE RANGE OF|
CREDITS OR DEBITS
|Features of workplace maintenance or operation||-10% to +10%|
|Risk elements not addressed in the Classification Plan||-10% to +10%|
|Availability of medical facilities in or near workplace||-5% to +5%|
|Safety equipment/devices present in/missing from workplace||-5% to +5%|
|Extraordinary safety programs applicable to workplace||-5% to +5%|
|Qualifications of employees||-10% to +10%|
|Accommodations/cooperation with carrier by management||-5% to +5%|
|Considerations related to policy expenses||-5% to +5%|
|Other risk characteristics not addressed above (specified)||-10% to +10%|
The maximum schedule rating credit permissible for any risk under this plan is – 25%.
The above chart should justify most workers comp safety programs.
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