WITC Safety Day

1. March 15, 2012 WITC Safety Day

2. Show Me the Money! Scott Huberty Northwest Chapter American Society of Safety Engineers The Importance of Safety Programs

3. Hazards Existing or potential conditions or operations that can result in damage to people or property…

4. Hazards What do hazards look like?

10. Hazards Existing or potential conditions or operations that can result in damage to people or property…

11. Hazards The Importance of Safety Programs

12. “Three Buttons” Regulatory Moral Financial

13. Show Me the Money! The Importance of Safety Programs

14. Show Me the Money! Financial The Importance of Safety Programs

15. Show Me the Money! Financial The Importance of Safety Programs How ya doin’

16. The Cost of Accidents • Direct Costs • Indirect Costs

17. Direct Costs of Accidents • Uninsured costs • Deductibles & expenses • Fines and litigation costs • Claim administration

18. Indirect Costs of Accidents • Equipment damage • Product damage / delays • Clean-up time and expense • Hiring expense to replace worker • Supervisor time to assist

19. Experience Modification What is an Experience Modifier? A number that reflects a comparison of your company’s workers compensation claims history to a statistical average for your industry.

20. Experience Modification - This number is adjusted annually and coincides with your policy renewal date.

21. Experience Modification Three important features of the Experience Modifier: 1. The significance of the modifier. 2. The timeframe covered in the calculation of the modifier. 3. The impact of individual claims on the modifier.

22. 1.45 .65 Experience Modification 1. Understand the significance of the Modifier. 1.00

23. ? 1.45 New three-year window Three years of losses Experience Modification • 2. Understand the timeframe reflected in the calculation of the modifier. 1/1/08 1/1/09 1/1/10 1/1/11 1/1/12 1/1/13

24. Experience Modification 3. Understand the impact of individual claims on the Modifier. • Two general categories of benefits paid under WC claims: • Medical costs • Wages (Indemnity)

25. Experience Modification 3. Understand the impact of individual claims on the Modifier. When calculating the modifier, claims that are medical-only are reduced by 70%.

26. Experience Modification 3. Understand the impact of individual claims on the Modifier. Illustration: Employee A: $1,000 claim (Medical-only) Employee B: $1,000 claim ($900 in medical bills, $100 in wages)

27. Summary The Experience Modifier is a number that reflects a comparison of your company’s WC claims history with a statistical average.

28. Summary The Experience Modifier is a long-term measure of your company’s safety success!

29. Summary Existing or potential conditions or operations that can result in damage to people or property…

30. Be Safe!