Few issues stir up as much genuine frustration among business owners as insurance costs. Single out the cost of workers' compensation
insurance, and you're likely to feel you've rattled a hornet's nest. In just the last four years, the cost of a premium for
workers compensation has risen dramatically. Nationally, the average cost is up by 50 percent. In California, where premium
hikes were the most severe, many business owners simply packed up and moved their companies elsewhere.
These hikes come at a time when workplaces arguably are safer than ever. That matters little, say insurance industry analysts
such as the Insurance Information Institute (III). They instead point to the escalating costs of medical care and, in particular,
to factors such as the number of follow-up visits prescribed by many medical professionals.
Based on this fact, it would seem there's little business owners such as repairers can do to manage their workers' comp costs.
After all, they'd essentially be battling against a nationwide tidal wave of factors.
Not true, say insurers. Shops, like any small business, can take measures to cut their premium costs. While they may not roll
back those 50 percent increases, taking the right steps can help repairers save money where possible and avoid further increases.
Read on. Step 1: Improve safety
You believe you've taken every step possible to make your shop safe. Is there anything more you can do? Absolutely.
Did You Know?
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Most accidents don't fall into the exotic or unimaginable categories. Most are the results of falls or involve back injuries
(sprained backs are the most common workplace injury). Stress proper lifting techniques and modify work processes to reduce
the number of times employees must lift. Keep tools and other workplace items on convenient shelves where they can be easily
moved to carts.
Shelving equipment and parts also addresses another safety concern: clearing your floor space. Workspaces are for working
and walking, and should be clear of boxes, tools, etc. On this same note, spills of any kind need to be cleaned up immediately.
Red Flags
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Also needing immediate attention are cuts and gashes. You're operating in an age of antibiotic-resistant microbes, which can
turn a minor cut into a serious infection requiring long-term treatment. Similarly address other safety areas you or your
workers might not be taking seriously enough. Make sure you stick to dress codes requiring coveralls, non-slip shoes with
steel toes and work gloves. Make sure hair is pulled back and safety goggles are worn wherever recommended. Finally, check
your first aid kits, eyewash kits and shop phones to make sure they are stocked, up-to-date and working. Verify that your
employees know where to find them. Hold a safety meeting at least monthly to discuss these issues.
Ensure your safety procedures are put to work by delegating responsibility for oversight. Institute a disciplinary policy
for anyone who violates your safety protocols, and stick to it. Hold training sessions that review the basics of your policies.
Make safety a priority, and your employees will take notice.
TIP: Get some help. Contact industry experts and consultants from government agencies like the U.S. Occupational Safety and
Health Administration (OSHA). Your insurer also can help. Insurance companies often staff or keep contact lists of experts
who can walk through your facility and spot potential problems or provide advice. Use these resources. If you're not taking
every precaution, your shop isn't safe enough.
