Adviser LeadingAge New York Summer 2015 July 2015 | Page 19

Safety Programs... (continued from page 17)
• Administrative expenses
• Worker stress in the aftermath of an accident resulting in lost productivity, low
employee morale and increased absenteeism
• Training and compensating replacement workers
• Reduced quality of care due to inexperienced workers
• Poor reputation, which translates to difficulty attracting skilled workers and lost
business share.
When calculating soft costs, minor accidents costs are about four times greater than direct
costs, and serious accidents about 10 to 15 times greater, especially if the accident generates
OSHA fines or litigation costs.
According to the International Risk Management Institute, just the act of measuring costs will
drive improvement. In theory, those providing the data become more aware of the costs and
begin managing them. This supports the common business belief that what gets measured gets
managed. And, as costs go down, what gets rewarded gets repeated.
Safety as a Core Business Strategy
Industry studies report that companies who focus on safety as a core business strategy
come out ahead. Consider the following as reported by the Occupational Safety and Health
Administration:
• A West Virginia nursing home had an OSHA injury and illness rate that was 6 times the
national average for skilled nursing facilities. A concerted effort was begun in conjunction
with Labor Department consultants to bring occupational safety up to the same levels as
resident safety.
• After initiating a comprehensive safety program, forming a safety committee, and instituting
a safe resident handling program (which included both mechanical lift devices, assist
devices and workplace modification), a 62 percent drop in recordable injuries was realized
in the first two years. Over a 12 year period, the injury rate dropped from 31 injuries
annually per 100 full-time workers to 2.1 injuries per 100 full-time workers.
• Workers compensation costs also dropped, from $330,000 when the safety initiative began
to a 10 year average of $210,000 annually. This amounted to a 10 year savings of nearly
$2,000,000.
• Other safety and health program success stories can be found at: www.osha.gov/dcsp/
smallbusiness/index.html
Considering the statistics, there is abundant evidence that there is direct correlation between
safety and cost savings. We are committed to helping you establish a strong safety, health and
environmental program that protects both your workers and your financial future. Contact us
today at 800-233-0115 to learn more about our value-added services.
Provided by Cool Insuring Agency, Inc. This Risk Insights is not intended to be exhaustive nor should any
discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance
professional for appropriate advice. © 2011 Zywave, Inc. All rights reserved.
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