Risk management is the process of identifying, evaluating, and controlling threats. These risks can be dangers to your company, personnel, or financial well-being. They can be natural disasters, for which you can assign probability ratios.
Security threats and on-the-job accidents are risks you can minimize or even eliminate with strategic management. Construction safety is a risk you can manage. And it might even reduce your insurance costs.
Construction Safety Prioritization and Better Workers’ Comp Costs
Construction is usually considered a high-risk liability for insurance companies. When accidents and injuries occur, it can take years to settle because of the numerous, complex contracts between contractors, which usually include liability assumptions language.
RBN Insurance professionals Blair Koorsen and Jeff Greenhalgh say one way for contractors to offset rising insurance costs is to secure more favorable workers’ compensation premiums. Proactive management and workplace risk reductions are key.
Documented Safety Programs
This gives you an advantage in recruiting new hires, especially in a competitive market. But it can actually enhance safety protocols and awareness. It can protect workers. When employees feel valued, you’ll see greater productivity. Implementing documented safety programs can reduce injuries by 15%-35%.
Steps To Lower Insurance Costs
Read OSHA (Occupational Safety and Health Administration) standards pertaining to your company, your workforce, and your state. Safety programs should be customized to fit your company’s size and culture. Share your safety program information with your insurance carrier(s) and OSHA. Your safety program should include:
- Employee inclusion
- Hazard identification/assessment
- Hazard prevention
- How to report concerns
- Procedures for injury reporting
- Leadership investment
- Program evaluation/ongoing improvement
“Documented safety programs can help insurance carriers view your organization more favorably,” say Koorsen and Greenhalgh. “Most importantly, make sure to partner with an insurance and risk management professional who understands your business and its unique risks…and will advocate on your behalf.”
Construction Monitor: Your Business Development Resource
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