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Minimizing California Workmans' Compensation Costs with an Effective Safety Plan

Guest post by: Ari Rosenstein

Article Overview: With just about all businesses looking to reduce costs, it is no surprise that workmans' compensation in California is frequently discussed by managers and small business owners. While the general trend has been increasing insurance premiums, the good news is that there are some very simple methods to minimize the costs associated with California workmans' comp.

Minimizing California Workmans' Compensation Costs with an Effective Safety Plan

With just about all businesses looking to reduce costs in the current economic climate, it is no surprise that the issue of workmans' compensation in California is frequently discussed by managers and small business owners in the state. While the general trend has been increasing insurance premiums, the good news is that there are some simple methods to minimize the costs associated with California workmans' comp. Many California employers are not aware that a written Injury and Illness Prevention Program (IIPP), more commonly referred to as a safety plan, is mandated by law. The law, known as Senate Bill 198, was enacted in 1989. Effective on July 1, 1991, SB 198 requires California employers to develop and implement an IIPP. The absence of an IIPP ranks among the most frequent Cal/OSHA (California Occupational Safety and Health Administration) citations against businesses. Fines for the failure to have an IIPP are upwards to $7,000.

In this article we review three of the most important sections of the IIPP, along with suggestions that will help you get started in creating an effective safety program. These measures will benefit small businesses, by helping them to reduce their California workmans' compensation insurance costs.

1. Management commitment/assignment of responsibilities

A demonstration of safety and health begins with top-level management. Management's commitment to safety will set the tone for the rest of the organization. Appointing a safety captain to be in charge of the program is a great start to demonstrating company-wide commitment. While the safety captain's primary role is to ensure that safety work-habits are adopted throughout the organization, they may also lead a safety committee comprised of employees representing each department/area of the organization. Members of the committee can assist the safety captain by executing the organization's safety goals.

2. Safety Communication system

There are many creative ways that you can communicate the importance of safety to your staff. They may include: introducing your safety program during new hire orientations, include examples of safe behaviors in a company newsletter/company-wide communication, post safety posters throughout your facility or communicate a safety tidbit on a regular basis at a start-up/staff meeting. Empowering your team to develop creative ideas on how to effectively communicate your safety program will go a long way in motivating them to stay committed.

3. Return Too Work Programs

It is in the best interest of the employer to return the employee to work as soon as possible. If an employee is unable to resume their previous job function due to injuries, the employer is encouraged to incorporate a "Modified Return To Work" Program whereby the employee can return to payroll while performing permitted job functions. This can significantly reduce the indemnity costs and minimizes the negative impact to the employer's insurance policy. An employer should also be vigilant in reviewing open claims with the insurance carriers and to have them closed and removed from the record as soon as possible.

Safety Professionals Can Help

While most employers earnestly want to reduce their California workmans' compensation insurance rates, creating a legally compliant, and effective, Injury and Illness Prevention Plan is often beyond the scope of expertise for the average business owner. Many of the complex guidelines and regulations require an in-depth knowledge of the law, and most businesses do not employ experts on staff to manage the process.

However, don't despair! There are many resources available that assist small employers create, implement and administer effective safety programs. While you may not want to invest the time or money in such a service, consider the long term savings you will enjoy by reducing your Experience Modification and rates. Suddenly, the upfront expense of hiring a professional will be an easy investment choice.

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Article Tags: California workers comp, IIPP, safety program, workmans compensation



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