WORKMAN'S COMPENSATION SHOULD NOT DRIVE YOU OUT OF BUSINESS

With the economy on everyone?s minds, many companies are forced to cut corners in their operations. One area that should never be cut is keeping up with safety procedures.
A decision to cut safety from a budget can lead to many more serious issues, such as increased injuries that are otherwise preventable, a rise in Experience Modification Rates (EMRs), and an increase in illegitimate workman?s compensation claims. While workman?s comp was put into place to protect employees getting hurt on the job, there are many instances where individuals abuse it and attempt to extract money for personal gain.

Keeping a safety culture up front and visible during poor economic times could help decrease false workman?s comp claims. By developing and sustaining a relationship with an independent safety consulting firm, a company can keep unnecessary injuries and workman?s comp claims at bay.
It is common to see a large increase in workman?s comp claims when unemployment and job loss threats are on the rise. Because employees are concerned with losing their jobs, claims are often created and falsified. In addition, employees that fake or exaggerate claims do not attempt to improve upon their "condition" because it is not in their greatest benefit to get well while they are collecting undeserved workman?s comp.

Too often, companies fall into a trap and pay claims because of lack of investigation. A safety consulting firm can put an end to these unethical situations by hosting a complete investigation as soon as an accident occurs, providing a company with much more than standard protocol.
A typical situation within a company lacking a safety program is as follows: an employee is injured. He then reports to his supervisor, the supervisor reports to the company?s office, the office reports to the insurance company, and the insurance company pays. Unless there is an investigation, it is usually a done deal and a claim is settled.

This typical scenario can be improved upon by working with an independent safety consulting firm. They get to know the insurance agent, underwriter, case manager, and everyone else involved in a specific claim. By serving as a liaison and thoroughly gathering evidence and investigating, they also reserve the right to tell an insurance company to deny a claim, and nine times out of ten, the insurance company will listen to a safety professional.

When a claim is legitimate, a safety consultant will remain in contact with the internal Human Resource department as well as the injured person, encouraging therapy and rehabilitation in order to get them back to work as soon as possible. They also keep confidential loss-run insurance information and EMR?s to help monitor and reduce accident exposures and potential raises in premiums when it comes time to renew business insurance the following year.

Safety cultures are ever-evolving and unlike a safety program, it is not a one-time accomplishment. A safety culture is a philosophy to keep at the center of daily activity for everyone involved in your company and on your jobsites to avoid injuries and false claims.

Rather than simply writing a set of policies, procedures and reports, it?s important for companies to include safety in the everyday mission and strategic plans. A safety culture is an investment which every company should take seriously and when done properly, should implement the following strategies:
? safety programs
? drug free workplace
? risk management
? accident investigations
? continual training
? material safety data updates
? knowledge of how to handle OSHA visits
? jobsite daily checklists

Through thorough implementation of the above strategies, many accidents can be easily avoided. By accessing a company?s operational activities and past workman?s comp claims, a safety consultant firm can pinpoint the areas where increased safety is necessary.

For example, if hand injuries that involved cuts and stitches are common, it should be made mandatory that every employee wear gloves. If eye injuries are frequent, all employees must wear protective goggles. This sounds simple, but it often takes an expert to access and point out what needs to be done in terms of safety.

In-house personnel are often too busy to deal with safety and must rely on an outside source. Safety consultants can provide counsel on protocols to implement while offering guidance on many safety laws and regulations specific to your state.

One crucial part of a safety culture and avoiding unnecessary workman?s comp claims is to execute and insist upon a drug-free workplace. About 50 percent of all claims can be traced back to abuse of illegal drugs and/or misuse of alcohol. Many states have enacted drug-free workplace and/or drug-testing laws, and some have laws that provide workers' compensation insurance premium discounts to companies that have drug-free workplace programs that meet certain criteria. (In states without such laws, some workers' compensation insurance carriers still opt to offer discount incentives.)

In summation, when and if an accident occurs, a safety consultant firm can help ensure an employer pays only for legitimate injuries. They work beyond the insurance company that is already working with hundreds of claims to ensure individual handling of the matter.

Workman?s comp is a wonderful benefit when it is used properly. A safety consulting firm will help to assure all claims are legitimate, protecting a company from paying into falsified claims. While it is unfortunate to say, employees cannot always be trusted and it takes an expert to evaluate which claims are real and which ones are not.

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Donna Pearson Chadwick, CSP, founder of Pearson Safety Services (PSS), a division of Jabezco Industrial Group, Inc., www.pearsonsafety.com.