Reduce Your Risk of Claims

The total cost of workers' compensation claims in the United States for the most recent year surveyed (2004) was a staggering $48.6 billion, according to the 2006 Liberty Mutual Workplace Safety Index Survey, and a significant increase from prior surveys. Yet the same study found that the leading causes of workplace injury have not changed significantly since 1998.

Though sobering, the survey does contain good news for employers: it's no secret what causes injuries in the workplace and armed with that knowledge, smart employers can take action to reduce their risk of injury, avoid workers compensation claims, keep employees safe and keep costs under control.

Leading Causes of Workers' Compensation Claims

The Liberty Mutual Survey revealed the top 10 causes of workers' compensation claims in U.S. workplaces:

1. Overexertion: Injuries caused by excessive lifting, pushing, pulling, holding, carrying or throwing of an object
2. Falls on same level
3. Bodily reaction: Injuries from bending, climbing, tripping or slipping (without falling)
4. Falls to a lower level
5. Struck by object: Injuries from being struck by an object, such as a tool falling from above
6. Highway incidents
7. Repetitive motion: Injuries from repeated stress or pain, such as ergonomic injuries to assembly line or data entry workers
8. Caught in or compressed by equipment
9. Struck against object: Injuries sustained by the worker striking against or walking into an object, such as a protruding door
10. Assaults and violent acts

Of these, the top five causes constituted 69.2 percent of all workers' compensation claims. Overexertion alone represented 27.9 percent of claims and a whopping $13.9 billion in workers' compensation costs.

The good news is that injuries from these causes, and others, can be prevented when employers examine their workplaces for risk and take constructive steps to reduce it.

Establishing a Program to Prevent Injury and Illness

In California, preventing injuries and illness is more than just good business - it's the law. All California employers, by law, must provide a safe and healthful workplace and an effective Injury and Illness Prevention Program (IIPP), in writing, that meets certain minimum state requirements.

The typical IIPP contains the following elements:

• Management commitment/assignment of responsibilities
• Safety communications system with employees
• System for assuring employee compliance with safe-work practices
• Scheduled inspections/evaluation system
• Accident investigation
• Procedures for correcting unsafe/unhealthy conditions
• Safety and health training and instruction
• Recordkeeping and documentation

Detailed information on legal requirements for IIPPs is available on HRCalifornia and is available from Cal/OSHA. Cal/OSHA also provides model programs for specific industries, as well as consultation and program implementation services separate from Cal/OSHA's enforcement section and available to all California employers. Other good sources of assistance include:

Other businesses in the industry/area: Similar businesses may have encountered similar problems with injuries and may have found innovative solutions. Many managers will share information in the area of workplace safety and health. Ask around at chamber of commerce or association meetings, or check online forums and blogs for advice.

Equipment suppliers: Due in part to liability concerns, equipment manufacturers have become quite concerned with safety in the use of their products, and will typically offer advice to promote safe use of their equipment. If an employer encounters trouble creating good safety protocols for a particular piece of equipment, talk to the vendor that supplied the equipment to determine if the vendor will help develop a solution.

Insurers: Many workers' compensation carriers, as well as liability and fire insurance companies, conduct periodic inspections and visits to evaluate safety and health hazards and give guidance and assistance in establishing and monitoring your program. Employers should contact their carriers to ask what the carrier has to offer.

Unions: If employees belong to a union, coordinate with their unions for taking joint action to solve problems and correct hazards. Many trade unions possess safety and health expertise they will share.

Once an employer understands what's required in an IIPP and the available resources to create one, consider following these steps to put a program in place that will not only comply with state law but also help continually bring the risk of injuries and workers' compensation claims, and costs, down.

Assign Responsibilities

Decide whom in a company will be given responsibility and authority to manage the safety program. In many small businesses this will be the owner, but that's not required by law. Don't rush to a decision on this issue. Putting the right person in charge of a safety program can make all the difference in whether the program is a minimum requirements compliance effort vs. a best practices safety tool that really recognizes the unique needs of the workplace and responds directly to those needs.

Don't assume that the safety program leader must come from management. Sometimes a foreperson or senior staff member possesses the best understanding of the real safety issues on the floor. Ignore titles and choose the person with the best background, training, temperament and workplace understanding to do a good job. Once that person is chosen, make sure he or she clearly and openly has the needed authority to do the assigned task. A program's success hinges on the individual chosen, and he or she can't succeed without full cooperation and support.

Look at What May Already be in Place

Cal/OSHA advises that before changing safety and health operations, employers should always gather as much information as possible about current conditions at the workplace, as well as work practices that are already part of an existing IIPP. This information can help employers identify workplace problems and determine what's involved in solving them.

The workplace assessment should be conducted by the person responsible for the IIPP, and/or a professional occupational safety and health consultant. The assessment generally consists of the following:

1. Safety and Health Survey

A comprehensive safety and health survey of a facility helps employers identify existing or potential safety and health hazards. The survey should evaluate workplace conditions with respect to safety and health regulations and generally recognized safe work practices and physical hazards; use of any hazardous materials; employee work habits; and a discussion of safety and health problems with employees. The survey must be documented if it will be used to establish an employer's IIPP for purposes of complying with California law. The survey should examine:

• Equipment - Make a list of equipment and tools, including the principle locations of their use. Special attention should be given to inspection schedules, maintenance activities and a facility's layout.
• Chemicals - Make a list of all chemicals used in the workplace, obtain material safety data sheets on the materials used and identify where they are used.
• Work practices - Detail specific work practices associated with equipment, tools and chemical use. Special attention should be given to personal protective equipment, guarding, ventilation, emergency procedures and use of appropriate tools.
• Cal/OSHA Standards - Review standards applicable to operation, equipment, processes, materials and the like. These standards set minimum requirements for workplace safety and health. Most workplaces come under Title 8, California Code of Regulations, General Industry Safety Orders. If a company is involved with construction, petroleum, mining or tunneling, that company will need the specific standards applicable to that industry as well.

2. Workplace Assessment

Once finished surveying conditions in the workplace, employers' next step toward reducing risk is to evaluate any existing injury and illness prevention measures in place to identify what's working well and what could be improved. Analyze as many of the following factors as you can:

• Accident, injury or illness data
• Current workers' compensation costs
• Rates of employee turnover or absenteeism due to illness and injury
• Information on safety and health activities ongoing or previously tried
• Company policy statements
• Existing workplace and safety rules and guidelines
• Records of training programs
• Compliance with requirements of California's Right to Know Law and Hazards Communications Standard
• Employee capabilities; make an alphabetical list of all employees, showing the dates of hire, their jobs, and their experience and training. Special attention should be given to new employees and employees with handicaps.
• Joint labor-management safety and health committee activities
• Other safety-related programs

Take Action as To Identified Risks

After evaluating the specific risks in the workplace, the programs currently in place and past claims history, an employer should have a pretty good idea of the areas for improvement. Develop an action plan to address and reduce the risk factors uncovered by a safety audit.

Once You Have Developed a Safety Program, Communicate It Clearly

One of the most important things an employer can do to reduce workplace injuries is to clearly communicate expectations regarding workplace safety and the reporting of injuries or illness.

Once finished developing a strong IIPP, the most important thing employers can do is to make sure employees know the rules and how to follow them. Include a detailed statement of safety rules in the employee handbook, discuss these rules during new employee orientation and reinforce them during safety meetings. Enforce safety rules with disciplinary action where necessary. The importance of safety in the workplace can't be overstated.

Clear, consistent, constant communication on this issue will keep it "top of mind" for employees and reinforce safe workplace behavior. In some cases, the fact that an employer maintained and publicized its safety policy may provide evidence to challenge a doubtful injury that was not reported in a timely fashion.