WITC WITC Safety DaySafety Day
March 15, 2012March 15, 2012
The Importance of Safety Programs
Show Me Show Me the Money!the Money!
Scott HubertyNorthwest ChapterAmerican Society of Safety Engineers
HazardsHazardsExisting or potential
conditions or operations that can result in damage to people or property…
HazardsHazardsWhat do hazards look
like?
HazardsHazardsExisting or potential
conditions or operations that can result in damage to people or property…
HazardsHazardsThe Importance of Safety Programs
““Three Three Buttons”Buttons”
RegulatoryMoral
Financial
Show Me Show Me the Money!the Money!
The Importance of Safety Programs
Show Me Show Me the Money!the Money!
The Importance of Safety Programs
Financial
Show Me Show Me the Money!the Money!
The Importance of Safety Programs
Financial
How ya doin’
The Cost of Accidents
• Direct Costs
•Indirect Costs
• Uninsured costs
• Deductibles & expenses
• Fines and litigation costs
• Claim administration
Direct Costs of Accidents
• Equipment damage
• Product damage / delays
• Clean-up time and expense
• Hiring expense to replace worker
• Supervisor time to assist
Indirect Costs of Accidents
Experience Modification
What is an Experience Modifier?
A number that reflects a comparison of your company’s workers compensation claims
history to a statistical average for your industry.
Experience Modification
- This number is adjusted annually and coincides with your policy renewal date.
Experience Modification
Three important features of the Experience Modifier:
1. The significance of the modifier.
2. The timeframe covered in the calculation of the modifier.
3. The impact of individual claims on the modifier.
Experience Modification
1. Understand the significance of the Modifier.
1.00 1.45.65
Experience Modification
2. Understand the timeframe reflected in the calculation of the modifier. ?1.45
1/1/111/1/10 1/1/121/1/091/1/08 1/1/13
Three years of losses
New three-year window
Experience Modification
3. Understand the impact of individual claims on the Modifier.
Two general categories of benefits paid under WC claims:
1) Medical costs
2) Wages (Indemnity)
Experience Modification
3. Understand the impact of individual claims on the Modifier.
When calculating the modifier, claims that are medical-only are reduced by
70%.
Experience Modification
3. Understand the impact of individual claims on the Modifier.
Illustration:
Employee A: $1,000 claim (Medical-only)
Employee B: $1,000 claim
($900 in medical bills, $100 in wages)
Summary
The Experience Modifier is a number that reflects a
comparison of your company’s WC claims history with a
statistical average.
Summary
The Experience Modifier is a long-term measure of your company’s safety success!
SummarySummaryExisting or potential
conditions or operations that can result in damage to people or property…
Be Safe!Be Safe!
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