January 2009
In This Issue
Manage Cost of Risk, Control Price
Identification of Exposures
Implementation of Control Measures
 
 
New Year 2009 
 
 
Insurance

Property
General Liability
Professional Liability
Directors & Officers Liability
Automobile
Workers Comp
Umbrella
Home
Auto
Recreational Vehicles
Bonds
Life & Disability
Group Health
401K
Investment & Retirement Planning 
 
Risk Management Services
 
My Wave
CompClaims Online
Disaster Planning
Safety Procedures
Safety Program Planning
Web Based Safety Training
Pre-employment Screening
OSHA Compliance
 Quick Links
 
EMA Website
 
OSHA Website
 
 
 
 
 

Winter Safety for Your Car
  • Create a winter safety plan for communicating with each other in case road conditions make it difficult to get home.  Ask about the snow-closure policies for employers, schools, and daycare centers, and keep all numbers handy.
  • If you don't already have cell phones, consider getting them so you can communicate if you get stranded.
  • Check your tires.  Whether you use all-season tires or snow tires, make sure the tread is sufficient and the tires are properly inflated.  This will give you more control on slippery roads.
  • Make sure your spare tire is in good condition and properly inflated; carry a jack and other tire-changing tools with you.
  • Flush and fill the radiator with the proper antifreeze/water combination.
  • Make sure your car is running properly and the engine is tuned.  Cold weather reduces performance.
  • Keep the gas tank full.  This helps to avoid moisture buildup and fuel-line freezing.
  • Replace the windshield wiper blades, and keep the washer reservoir filled with fluid made especially for windshield washers.  Do not use plain water; it will freeze.
 
 
 
The State of New York Mandates
 
 
If you have employees working or living in the state, you must carry a Workers Compensation Policy and Disability Policy for the State of New York. 
 
Please contact our office today for a quote and visit the New York website for additional information:  www.nysif.com 
 
 
 
 
 
 
Remember, We Are Always Looking for Referrals!

We will send you a small Thank You gift for each referral we receive. 

 
 
Call us today to review all of your insurance and financial needs:
(586) 778-9900 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Eastern Michigan
Agencies Inc
24220 Jefferson Ave
St Clair Shores MI 48080
586-778-9900
Fax 586-778-9915

Five Steps to Reducing Workers' Compensation Costs
 
When a company experiences significant increases in worker's compensation costs, it usually triggers internal activities aimed at reducing insurance costs and reduce spending.  The key to spending fewer dollars is more than just stopping a few accidents; the key is having a sound safety program designed to continuously improve.  This is where a safety program that, at a minimum, is compliant with the OSHA standards can yield significant savings for every company by reducing injuries and illnesses, and saving workers' compensation dollars. 
Building a solid OSHA program requires putting programs into practice
 
From an entry-level standpoint, there are five steps your company can take to have a well-rounded safety program that produces a safe work environment, achieves OSHA compliance and reduces accidents.  These steps are:
 
1.  Develop the various programs required by the OSHA standards 
2.  Integrate those programs into the daily operations
3.  Investigate all injuries and illnesses
4.  Provide training to develop safety competence in all employees
5.  Audit your programs and your work areas on a regular basis to stimulate continuous improvement
 
With those steps in mind, let's start with OSHA compliance.  Aside from being a requirement for general industry, the OSHA standards provide a good pathway to incident reductions.
 
A good number of accidents stem from poorly developed, poorly trained, or poorly implemented OSHA programs.  Slips or trips may come from poor housekeeping efforts or not keeping walking and working surfaces clear.  Not using personal protective equipment may result in excessive lacerations.  Poor lifting techniques can result in strains.
 
Many of the OSHA standards require some type of written program be developed and then communicated to employees.  Experience shows that companies with thoroughly developed OSHA-compliant programs have fewer accidents, more productive employees and lower workers' compensation costs.
 
But policies alone won't get results; the program must move from paper to practice to succeed.  Putting a policy into practice requires a strategic plan clearly communicated to key participants, good execution of that plan based on developed competencies, and a culture that inspires and rewards people to do their best.
 
When developing any business initiative there must be an emphasis on frontline supervisors and helping them succeed.  Every good business person knows that any new program, be it safety, quality or anything else, lives and dies with the frontline supervisor.  If the frontline supervisor knows the program and wants to make it happen, the program succeeds; if not, the program is a source of constant struggle and an endless drain on resources and energies.  Providing supervisors with knowledge and skills through training is critical to the success of any program.
 
A solid OSHA program, integrated into the daily operation and led by competent supervisors is just the beginning.  Successful safety programs focus on being proactive instead of always reacting to issues.  Accident investigations provide an excellent source of information on real or potential issues present in the workplace.
The role of accident investigation
 
Worker's compensation is designed to recompense employees for injuries or illnesses that result in or out of the course of employment.  This should not come as a surprise, but increasing claims drive up workers' compensation costs.  To reduce those costs, you must reduce your accidents; it's just that simple.  The ability to reduce accidents is significantly enhanced when those accidents are fully investigated instead of simply being reported.
 
Accident reports are historical records only citing facts while accident investigations go deeper to find the root cause and make improvements.  Businesses that stop rising work comp costs have an effective accident investigation process that ferrets out the root cause of the problem.  Unless the root cause is discovered, recommendations for improvement will remain fruitless.  Again training proves beneficial because a supervisor skilled in incident analysis is a better problem solver for all types of production-related issues; not just safety.
 
Which accidents should be investigated?  All accidents should be investigated to find out what went wrong and why.  Some may suggest investigating every accident is a bit over the edge and only those that incur significant costs are worthy of scrutiny.  But ask yourself this question:  If you only investigated serious quality concerns instead of every little deviation, would your quality program still be a effective as it is?  Companies with solid quality programs investigate and resolve every deviation from quality standards.  Here's the key:  accidents are deviations from your safety program and warrant your full attention to find the root cause.
 
You will reduce your workers' compensation costs if you investigate all accidents.  If your emphasis is only on those incidents that have to be 'recorded' on the OSHA 300 Log, you close your eyes to the biggest accident category of 'first aid only' incidents.  Many companies get upset about 'recordables' or 'lost time incidents' because of the significant costs involved but then they don't go far enough with problem resolutions.  Recordable and lost time incidents don't make up the largest block of of incidents; it is first aid only incidents that are the largest category.
 
Statistically it is proven that for every 100 accidents, 10 will be recordable and one a lost time incident.  If you investigate only recordable or lost time accidents, 89 of your incidents go unnoticed.  Again, using the Quality Program Analogy, would you consider a quality program that allows an 89% failure rate successful?  Hardly!  It doesn't take a PhD in mathematics to see that reducing serious accidents means you must reduce your overall base of all accidents - including first aid incidents.  That only happens when every incident is fully investigated to find the root cause and remedial actions are identified and integrated into the daily operation.
Training and auditing for continuous improvement 

The final steps focus on training and auditing your program for continuous improvement.  Training plays a significant role in safety and in reducing work comp costs.  The goal of training is to develop competent people.  What is competency?  Competency is when people have the knowledge, skill, and understanding to perform assigned job responsibilities.  Competence, more than anything else, will improve all aspects of your business and drive down costs.  Supervisors must have the knowledge and ability to integrate every safety program into their specific areas of responsibility.  Every employee must know what is expected of them when it comes to implementing safe work procedures.  Once the programs are developed and implemented, they must be reviewed on a regular basis to make sure they are still relevant and effective.

Might all of this require a change in how you manage your safety program?  Well, if your workers' compensation rates are high because you have a poor safety program, you better change how you manage your safety program.  Back in the 1980s when 'quality' went through its renaissance, was it necessary for companies to make some changes in how their quality programs were managed?  The same thing is necessary with 'safety' and having an effective safety program.

Tangible benefits 

  • A return on investment and direct bottom-line benefits can be seen when a safety program is properly designed, implemented and integrated into the daily operation.
  • A competency-based safety program is compliant with OSHA requirements and therefore reduces the threat of OSHA fines.
  • A competency-based safety program lowers accidents and fewer accidents lowers workers' compensation costs.  When incidents do occur, a competency-based safety program fully evaluates the issue and finds the root cause to prevent reoccurrence and provides a workplace that is free from recognized hazards that injure people.
  • A safer workplace creates better morale and improves employee retention.  Auditing keeps your programs fresh and effective and drives continuous improvement.
  • Finally, a competency-based program produces people who are fully engaged in every aspect of their job and are satisfied and fulfilled producing high-quality good and services.
 
Dollar-Cost Averaging 

Most people are quick to agree that volatile markets present buying opportunities for investors with a long-term horizon.  But mustering the discipline to make purchases during a volatile market can be difficult.  You can't help wondering "Is it really the right time to buy?"

Dollar-Cost averaging can help reduce anxiety about the investment process.  Simply put, dollar-cost averaging is committing a fixed amount of money at regular intervals to an investment.  You buy more shares when prices are low and fewer shares when prices are high, and over time, your average cost per share may be less than the average price per share.  Dollar-Cost averaging involves a continuous, disciplined investment in fund shares, regardless of fluctuating price levels.  Investors should consider their financial ability to continue purchases through periods of low price levels or changing economic conditions.  Such a plan does not assure a profit and does not protect against loss in a declining market.
 
Now May Be a Great Time for a Portfolio Checkup
 
Is your portfolio as diversified as you think it is?  Remember that your portfolio's weightings in different asset classes may shift over time as one investment performs better or worse than another.  Together with a financial advisor, you can re-examine your portfolio to see if you are properly diversified.  You can also determine whether your current portfolio mix is still a suitable match with your goals and risk tolerance.
 
Believe Your Beliefs and Doubt Your Doubts
 
There are no real secrets to managing volatility.  Most investors already know the best way to navigate a choppy market is to have a good long term plan and a well-diversified portfolio.  But sticking to these fundamental beliefs is sometimes easier said than done.  When put to the test, you sometimes begin doubting your beliefs and believing your doubts, which can lead to short-term moves that divert your from your long-term goals.  To keep from falling into this trap, give us a call for a free portfolio analysis before making any changes to your portfolio.