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Reduce Your Workers’ Compensation Insurance Cost

Tuesday, July 21, 2009
Reduce Your Workers’ Compensation Insurance Cost

For most companies, the cost of workers’ compensation insurance is a major expense. However, there is a way to reduce that expense. Forming a safety committee can provide real savings for your company. A well-designed and administered safety committee can help to reduce the burden of running a safety program and increase the return on the investment.

The benefits to forming an effective safety committee include:

  • Increased employee involvement
  • Increased productivity
  • Increased morale
  • Decreased injuries and illnesses
  • Decreased waste of materials
  • Decreased cost of insurance coverage

In reviewing the benefits, let’s begin at the bottom and work our way up. Pennsylvania provides a 5 percent reduction in your workers’ compensation premium if you have an effective safety committee that meets the state’s criteria. Pennsylvania offers this savings in recognition that having an effective safety committee typically reduces workers’ compensation costs by much more than the 5 percent. If an employer has an effective committee, both the employer and the state win. It’s a good return on investment for both parties.

Both material waste and injury and illness rates are reduced. Morale is increased through the improvement in both the ability to be involved in decision-making and improvement in workplace conditions. Productivity is improved as people are working smarter and safer. The burden of running the safety program is reduced as the responsibility for safety is switched from a selected few to all employees served by the safety committee.

The safety committee can serve as the H.E.A.R.T. (Hazard Evaluation Accident Review Team) of your safety and health program. It can help to strengthen the body of the program by detecting conditions that could or have caused harm, and then pumping information into the program to protect it from that harm or to repair the harm that has occurred. Using the heart and body analogy, if one hazard that you have is chemical use and your program to address hazardous chemicals is weak, you need to strengthen that “muscle” by having the H.E.A.R.T. remove the weak parts of the program, and then rebuild it.

  • How do you establish an effective safety committee?
  • Why is a committee needed?
  • Who should be involved?
  • What should their responsibilities be?
  • When should they meet?
  • Where should they meet?

For answers to these and other questions, or for assistance in establishing or revitalizing a safety committee, please contact Colin J. Brigham, CIH, CSP, CPE, CPEA, Vice President, at 610.524.5525, ext. 24, or email.



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