The goal of any good business is to minimize the potential for loss that may arise on the job. According to the Occupational Safety and Health Administration (OSHA) in Washington, D.C., 4,585 workers were killed on the job in 2013, with 16 percent of these fatal work incidents (734) involving contractors. In 2014, OSHA reported the following leading standards that have been cited as violations of applicable federal laws and regulations: fall protection, hazard communication standard, scaffolding, respiratory protection, powered industrial trucks, control of hazardous energy (lockout/tagout), ladders, electrical, wiring methods for components and equipment, machinery and machine guarding and electrical systems design.
These numbers and citations suggest the need for risk management solutions and safety training programs designed to minimize the potential for loss and limit your financial exposure should accidents occur. The use of loss control insurance helps further mitigate your loss risk and provide you with the financial capability to address your loss and continue to operate your business.
Here are some guidelines on how you may be able to lower your risk on the job and the costs associated with loss. These include establishing a culture of safety within your body that stems from management to the employees and other associated persons; the implementation of a safety training program for both regular and new employees; and, the use of loss control insurance coverage as an important risk management tool to mitigate against financial loss.
Establishing a Culture of Safety for the Business
One of the first methods that will help you lower on the job risk is the establishment of a culture of safety. Working with the senior management team, policies and procedures should be considered and drafted that take into account the nature of the wok you are engaged in, the type of risks present that may enhance the potential for loss, and the practices your staff and workers engage in that may increase the potential for loss. Once discussed, these policies should be announced and acknowledged by everyone associated with the company. Obtaining buy-in is important in order to affect a cultural shift toward safer workplace practices.
When establishing a plan for safety, it is important to solicit as wide a range of opinions regarding the standards you hope to implement and how they will impact productivity and employee morale. You may choose to work from a safety planning template, however, make sure that the cultural change you are looking to impact is meaningful to the type of work that you are engaged to and specific to your industry.
Implementing a Safety Training Program
A safety training program is an ideal way to not only implement the changes you want to see take place in the workplace regarding safety but also to reaffirm everyone’s commitment toward safety. Such a program, which should be administered no less than annually, provides you with an opportunity to discuss safety trends and data that affect the type of work you do and to incentivize workers to continue to observe the safest practices on the job.
New employees should also be required to attend or engage in an initial safety program that is designed to establish a mindset toward safe practices early on. This type of training can set the beginning tone toward reducing accidents and reinforce the reporting procedures and protocols that you have in place when an accident occurs.
The Use of Loss Control Insurance as a Risk Management Tool
Insurance is an important risk management tool. While insurance cannot eliminate risk and thus the resulting financial loss associated with risk, it can reduce your financial exposure as a result of the loss. Loss control insurance works to provide you with the financial resources necessary to pay for the financial cost that comes from property damage or personal injury arising from an accident or other safety issues on the job. This protection works hand-in-hand with other insurance that you may have in place, such as property and equipment and general liability insurance. It can also complement your worker’s compensation coverage, which is mandated by most every state.
The type and amount of loss control insurance that you need depend on the type of business you are in and the types of preventive measures taking to lower the potential for loss. If you follow these general guidelines as set forth, you may find that cost of loss control insurance both affordable and a necessary tool in order to protect your financial assets and create a safer work environment.
With over 15 years of experience providing customized risk management solutions to the construction industry, the Pittsburgh insurance brokers at Allied Insurance understand just how damaging loss can be for your company. That’s why our team offers comprehensive OSHA logs, safety seminars, and loss control services to help you minimize your company’s exposure and build your bottom line. Discover how our Solutions Driven approach can help you keep your company protected and contact Allied Insurance today.
*Allied does not deem this list as a complete and thorough listing of all risk management issues and solutions, and does not recommend it be primarily relied on . It only highlights some common issues and resolutions. For a thorough overview, please contact Allied’s Risk Engineering Division.