Save your business money by taking an active role in employee safety.

The main pricing component of your workers’ compensation policy is your Experience MOD (Experience Modification). This number shows whether your workers’ compensation losses are better or worse than expected.

• If your MOD is less than 1.00, your business compares favorably to other businesses in your industry.
• If your MOD is more than 1.00, your workers’ compensation premium will be higher than if your MOD is below 1.00.

The National Council on Compensation Insurance (NCCI), an organization that administers workers’ compensation on behalf of most states, evaluates your business’ loss and payroll history and compares that experience with the average experience in your industry. From there, your ex-mod is calculated.

A few things to keep in mind:

1. Not all businesses will qualify for an experience rating. Your eligibility is based on premium size, which varies by state.
2. The experience rating period usually consists of the prior three policy years, not including the most recent expiring policy.
3. Each loss will typically impact your mod for a three-year period.
4. The frequency of losses tends to impact your mod more than the severity of a single loss.
5. Getting injured employees back to work as soon as possible saves you mod points and money.

There are actions you can take to improve your MOD today.

Institute a solid hiring & orientation program

Perform a job analysis that includes specific tasks and any physical requirements. Hire employees who are both mentally and physically fit for the job. Train each employee on the requirements of the job as well as their responsibility for safety, and enforce compliance with these responsibilities.

Create a written safety program

A written safety program should include, but not be limited to: safe vehicle operation, proper lifting techniques, safe use of tools and equipment, warehouse/dock safety and regulatory compliance. Identify who is responsible for the program and communicate the requirements to workers. Most importantly, the policy should include rewards and disciplinary measures with worker sign off.

Hold regular training and safety meetings about specific topics such as safe driving, lifting, slips and falls, etc.

The main objective of a safety meeting is either to remind employees of safe practices they have already learned, or to introduce and build awareness of new techniques, new equipment or new regulations that must be observed. Conducting a successful and interesting safety meeting takes planning on the part of the individual in charge. Be sure to document attendance with a sign-in sheet.

Investigate all incidents using root cause analysis and corrective action techniques

The scene of the accident or injury is the best place to gather information for later analysis. The incident analysis should be conducted by someone with a solid understanding of what facts to gather, what to look for, how to determine root causes and what steps to take next. Use a form to document your findings.

Start a behavior observation program and provide on-the-spot feedback to workers

Observe workers on the road driving and while walking and working to determine if they are taking safety training to heart. It also creates an opportunity to provide feedback on performance and correct unsafe behaviors as they happen. Use a form to document your findings.

Require seatbelt usage and/or have high visibility seatbelts

An alarming number of contractors are killed, paralyzed or seriously injured in motor vehicle accidents because of not wearing their seatbelts. Seatbelt usage should be mandatory. Consider installing high visibility seatbelts or use retrofit sleeves to heighten awareness.

Require slip-resistant shoes

Slips and falls may seem like minor incidents but they can escalate into very serious injuries that can keep you off the road and cost you a significant amount of money. Even a small spot of water on smooth concrete is as slippery as walking on ice. Wear appropriate slip-resistant shoes, periodically check the condition of the soles and replace them as they wear down.

Create a formal written return-to-work program

Implement a return-to-work program that is appropriate for the scope of the injured employee. Provide transitional duty programs that help injured employees return to a productive position as soon as medically approved. Work closely with your claims adjuster to understand what’s available under law in your state.

An investment in the safety of your employees is a smart investment in your business.