Strategies To Reduce Workplace Risks Same in Soft Market

Loss and safety management can help companies to save money by reducing workers’ compensation insurance claims, according to Tim East, director of risk management for The Disney Co., Woody Hill, vice president of loss control for Employers Compensation Insurance Co., and Bill Zachary, vice president of risk management for Safeway Inc. Speaking on a panel titled “Loss Control and Safety Management in a Soft Market,” East, Hill and Zachary shared the following practices that can be used to keep claims costs down.

• Don’t shop around. East recommended companies not shop a lot for new workers’ comp coverage, but instead build long-term relationships with carriers so they have knowledge about the account. At most, he said employers can seek to improve terms and conditions of their policies during a soft market.
• Make sure operations are safe. Whether business is slow or booming, it’s important to strive for a hazard free environment and develop a thorough safety training program. At Disney theme parks, for example, employees receive training on medical response, law enforcement exercises, evacuation drills, and emergency operation procedures.
• Safety is everyone’s responsibility. East said his risk management philosophy is to have safe facilities then hire and train the best people. “All accidental losses are preventable,” he said. Thus, once employees are trained, they share responsibility for maintaining safe workplaces. Especially for a company like Disney that is a trusted brand among families and children, East said employees must be conscious of safety to uphold that reputation.
• Emphasize a substance-free workplace. Zachary said Safeway recently implemented post-accident drug testing. Once this policy was implemented in the company’s Oregon stores, Safeway saw a 27 percent drop in the frequency rate of accidents.

Employers may think such testing is not appropriate, but Zachary said the program creates a safer workplace. And, he added, “Providing a safer work environment means the company is providing a safer work environment for customers.”

• Put policies in writing. Hill said having a formal policy on risk management and safety emphasizes the importance of the program, which helps to reduce claims.
• Form partnerships. Hill recommended companies look at loss control as a partnership between the underwriter, claims examiner and client. Then, the workers’ comp insurance policy is no longer about cost, it’s about service.

East, Hill and Zachary were speakers at the recent Insurance Industry Charitable Foundation and the Child Abuse Prevention Program 9th Annual Educational Forum.