The experience modification indicates relative claims experience by offering a credit modification, lower premium, for positive claims experience and higher premiums, debit modification, for poor experience.
But does an experience modification help you understand the rate of injuries in your operations rather than the raw cost? Frequency of claims correlates to safety more so than the costs associated with those claims.
According to the Bureau of Labor Statistics (http://www.bls.gov/iag/tgs/iag23.htm), full-time construction professionals suffer four injuries per year for every 100 employees on average. Half of those injuries result in loss of time or light duty assignments.
The average time lost is one and one-half days.
First, four injuries out of 100 employees may not sound like a high average, but that rate makes construction a very hazardous occupation. Personal protective gear and safety awareness over the past few decades has helped reduce jobsite claims, but this rate can be reduced further.
Slips and falls are the most common claims and yet very avoidable using proper techniques for ladder safety and spill clean-up. Tie ladders off or use a buddy to steady it; clean spills immediately and thoroughly.
Back pain from lifting incorrectly or excessively is common in the construction industry. Again, avoidable using a weight limit per lift and a buddy system for heavier loads.
Use your insurance carrier resources to reduce and eliminate injuries through advanced and aggressive loss control techniques. Use government resources like the Occupational Safety and Health Administration (www.OSHA.gov) which can provide safety regulation awareness or instructions in Spanish and other languages.
Workplace safety is an employee benefit. Can you prove your work sites are safer than average? Do you have light duty options for unfortunate injuries? Do you investigate all injuries and find a cause of and prevention for each incident?
Worker safety pays in cash and improved morale.
