Knowledge Center > Insurance Advice and Tips >

Loss Control

An Effective Safety Plan Can Reduce Your Workers' Compensation Costs
By Phil Ogata

A construction job site is one of the most hazardous work environments around, from a risk management perspective. You may already realize that your workers'compensation insurance cost is heavily influenced by your ability to control and minimize employee injuries at each of your projects. As such, your safety program can have a direct impact on your company's bottom line. Creating an effective safety program should be considered an essential management concern.

Direct supervisors, such as foremen, typically are more familiar than other management personnel with the work habits and attitudes of the field employees. Supervisors are considered the key to controlling practices and conditions leading to jobsite injuries. The following list outlines responsibilities which should be made a part of every supervisor's performance objectives and evaluation:

1. Perform a Job Safety Analysis
• Identify duties and hazards of each position.
• Evaluate if the hazards are properly controlled.
• Determine what controls, safeguards and personal protective equipment are needed.
  
  
2. Instruct personnel in Safe Work Practices
• Complete prior to starting project and daily work.
• Train employees based on hazards and results of job safety analysis.
• Ensure information is understood.
• Periodically test and retrain your employees.
  
  
3. Monitor Employees and Work Area For Hazardous Practices & Conditions
• Perform daily walk-through assessments.
• Use a systematic approach (checklist helpful).
• Develop your own awareness and hazard recognition skills (helpful resources include training seminars, Internet Web sites, safety professionals and consultants).
  
  
4. Conduct Accident Investigations and Develop Corrective Action
• Identify accident "cause factors" (usually unsafe behavior).
• Develop corrective action to prevent accident recurrence.
• Ensure action is completed and monitor for effectiveness.
  
  
5. Hold Regular Meetings to Review
• Unsafe practices and conditions observed.
• Jobsite accidents and corrective action taken. Target areas for improvement.
• Employee safety suggestions.
  
  
6. Set a Good Example
• Practice what you preach.
• Majority of employees will mirror the attitudes of their supervisors.
• Workers will care about safety if they perceive their supervisors do.

Ensuring that these supervisor responsibilities are implemented and followed makes good business sense, and can eventually lead to a reduction in your accidents and insurance costs. A safety program should be viewed as a profit center and as a priority in your daily operations.

Phil Ogata is manager of the Risk Management Department with American Pacific Insurance Company, Inc., a member of the AIG Hawaii family of companies.