The cost of workers’ comp remains a
top concern for most employers.
These costs continue to increase and, in fact,
the problem is so vexing that 35 states
enacted reforms to their workers’ comp
laws in 2006.
But, what are the biggest issues
for contractors, and how can CFMs
control these rising costs?
Since its origination 96 years ago, the workers’ comp
system has provided millions of injured employees
with benefits for on-the-job accidents. The system has
also protected many employers from lawsuits.
However, the system has also evolved into a complicated and expensive one that often places the injured
worker, the employer, and the employer’s insurer in
conflict. And, the costs employers pay to fund the
workers’ comp system have escalated during recent
However, contractors and their CFMs are not without
recourse in trying to control these costs. Understanding where your company stands in the workers’ comp
macrocosm is critical to success.
The bottom line is that the variable costs of workers’
comp claims (retained losses and related claims-han-dling expenses) are nonproductive dollars – money
unavailable for any number of corporate initiatives.
So, it pays to reduce the number and frequency of
your workers’ comp claims. When you pay attention to
all aspects of these claims (from pre-loss issues to data
collection), your company can reduce its costs, while
establishing a best-in-class safety record.
The least expensive accident is the one that never
happens. Contractors have access to many techniques
that prevent injuries. Specifically, they can: 1) use
workplace diagnostics and benchmarking to discover
areas for improvement, 2) make smart hiring decisions, 3) apply ergonomics, and 4) develop top-notch
WORKPLACE DIAGNOSTICS & BENCHMARKING
Before you can repair or improve a workplace safety program, you need to understand it thoroughly.
Where should company resources be concentrated?
What’s really happening on your company’s construction jobsites?
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