3 Steps for Creating Safety Plans...
Small businesses know that insurance costs of all types continue to rise year after year. The growing cost for workers compensation, property and casualty coverage, and health plans, is often the number one concern of small businesses. But there are ways to keep premiums down. One easy and inexpensive way is to use safety plans to help reduce your claims, which in turn will keep your premiums down.
Perform an inspection of your existing facilities and operations. Review your physical layout and the way your employees do their jobs. Look for lighting, electrical outlets, machine guarding and personal protective equipment. Try to identify risk factors that can lead to accidents, fires and other events that call insurance into play.
Your common sense alone may not be sufficient to help you identify potential hazards or to devise necessary solutions. Here’s where the help of your insurance agent or carrier comes in. According to Rich Kalina, senior vice president of commercial lines at General Casualty and Southern Guaranty Insurance Companies (www.gencas.com), the best place to start is with your local agent. Through the carrier, your agent has access to a wide array of resources to help in your safety plan efforts. For instance, you can be put in touch with the insurer’s loss control person, who can personally assist you.
Create safety procedures.Devise a plan for safety. Include not only safe operations for machines and other obvious safety measures, but also plans for fire emergencies, severe weather and other contingencies that pose safety hazards.
Again, your agent or the carrier can provide you with reference materials or even help you draft your loss prevention procedures.
Start with tips on disaster-proofing your business from the Insurance Information Institute (www.iii.org/individuals/business/basics/disaster). Also use a preformatted program such as the Model Safety Program created by the Property Casualty Insurers Association of America (www.pciaa.net), which can be tailored to your needs. This free program is available through your agent or insurer.
Also check out resources available to you through the Occupational Safety and Health Administration (OSHA). While OSHA is geared toward the legal obligations of employers to provide safe working conditions, the dividend to employers in following OSHA standards is to reduce incidents and lower insurance premiums (go to www.osha.gov).
Small businesses can use OSHA’s consultation service to review their workplace conditions. OSHA will make recommendations for solving safety and health problems it identifies and provide training and education for employees. Other benefit: A one-year exclusion from a programmed inspection. For information, go to www.osha.gov/dcsp/smallbusiness/consult.html.
Build in ongoing checks. Having a plan won’t prevent incidents if it isn’t used.
Where appropriate, use safety training videos to educate your staff about procedures. These videos are usually available free of charge through your agent.
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