Technology in the Trucking Industry

Impacts of Improving Safety in the Trucking Industry and how it impacts Insurance

With the prevalence of online shopping, the Trucking Industry is booming like never before. The need for more truckers is ever present throughout the industry. The demands of the industry are forcing drivers to be behind the wheel for more days and more hours then ever. With this demand comes an immense amount of risk. These risks can lead to more insurance claims throughout the industry which can lead to rising insurance premiums. Fortunately, this rise in demand for truckers is coinciding with amazing advancements in technology throughout the Trucking Industry. These advancements, in many ways, is leading to a safer experience for drivers. Here are five ways technology is impacting the Trucking Industry and three ways technology is impacting insurance for trucking businesses.

Trucking Industry provides a service many people in the US benefit from.

How is Technology impacting the Trucking Industry?

Fuel Efficiency
Driver monitoring
Traffic Coordination
Recruiting
Comforting Drivers

Fuel Efficiency in the Trucking Industry

One major cost for everyone involved in the Trucking Industry is the cost of fuel. Unfortunately, fuel prices fluctuate from year to year. This makes it extremely difficult for businesses to predict what costs will be for their business. Because of this disparity in prices for fuel from year to year, improving fuel efficiency is of utmost importance to businesses within the Trucking Industry.

Using GPS Technology to get from point A to point B without getting lost means less time finding loads. When you consider many companies have dozens or even hundreds of drivers on the road at any particular time, costs can add up quickly. Every minute on the road saved can add to bigger profits for the company. In addition to less time looking for a load, GPS Technology is helping drivers reduce idling time by avoiding traffic jams.

The American Trucking Association (ATA) suggests that the best way to reduce fuel consumption is to reduce speed. According to this study by the American Trucking Association found a truck traveling at 75 mph consumes 27% more fuel than one going 65 mph; so limiting truck speed to 65 mph would save 2.8 billion gals. of diesel fuel over a decade. More experienced drivers know this and can save the business and the industry as a whole as much as 27% yearly by driving at an appropriate speed.

Driver monitoring

ELD’s or electronic logging devices are helping fleet managers monitor driving habits to benefit safety and fuel efficiency. Monitoring drivers with ELD’s allows companies to more effectively manage driving habits and more quickly offer extensive training to new drivers. When new drivers are evaluated remotely, it can lead to better safety outcomes and better fuel efficiency for the business and the industry as a whole.

Traffic Coordination in the Trucking Industry

With the ability to communicate and access fleet information remotely, many companies are able to improve delivery times. Drivers can now coordinating driving patterns to miss traffic and bad weather. Some technology are good enough to warn a driver about a risk they face in their blind spot in realtime. This leads to less time spent idling and less instances of Distracted Driving.

Recruiting and staffing

Technology and the internet allow trucking companies to find more drivers in more areas of the country then ever before. Many drivers find jobs through online job boards over their phone while sitting at a rest stop. Because of this accessibility, drivers and owner operators have more access to better jobs and better pay rates then ever before. Also, staffing agencies are now able to source positions out to only the most qualified drivers more effectively. The process of matching drivers with the companies looking for their skills is better and more efficient. This benefits everyone within the industry and allows the industry to keep shipping rates low.

Comforting Drivers in the Trucking Industry

Technology benefits the driver in many ways then just the efficiency of their driving. With streaming services, there are better music listening options and more ways for drivers to communicating with their family and friends while they are away from home. This adds to the quality of life for drivers who live a different work schedule than pretty much any other industry.

Truck Driver unloading his rig.

How is Technology Impacting Insurance?

Less Frequent Claims

Improvements in the Trucking Industry, through better technology, lower the frequency of claims the insurance industry has to process and pay for. Less insurance claims usually results in improving rates for multiple types of commercial insurance.

Less Severe Claims

When the Trucking Industry benefits from technology, it also results in the claims that are filed being less severe. When the claims are less severe, insurance carriers do not have to fork over as much money to cover these less severe claims. When a trend of less severe claims occurs throughout an area or an industry, it results in lower insurance premium for those states and industries.

Better Data

Technology allows insurance carriers to process more and better data. Processing data more efficiently allows insurance carriers to save time and man hours processing policies, renewals, and claims. The insurance industry has decades of data to use in order to make am underwriting decision. This data allows them to more effectively recommend coverages and limits to businesses within the Trucking Industry. Technology allows more people within the insurance industry to have more information at the hands to make decisions more effectively.

Workplace Injuries Spike In Spring

Especially Following the Spring Switch to Daylight Saving Time

There are many changes that take place during the second quarter of the year. Winter gives way to Spring, temperatures begin to rise, plants begin to bloom, and critters come out from hibernation. With each of these changes come additional risks to your business. During the time change to day light savings time the Average American gets 40 minutes less sleep the night after the time change. Coincidentally, on-the-job injuries increase the week after this takes place. Here are five ways your business faces risk in the Spring Months.

Spring Dandelion Bloom

Severe Spring Weather

There are risks associated with the weather during all months of the year, but extreme weather is especially problematic in the Spring months. Depending upon where your business is located, there can be snow, rain, sleet, hail, thunderstorms, or even tornadoes. If you have employees who work out in the elements, you need to have crystal clear procedures for how they should proceed during certain weather related scenarios.

Insects and Vegetation

There are many types of insects and vegetation that are just springing to life during the Spring Months. Many of the critters coming to life carry a number of diseases. In addition to insects and rodents, there are also plants like poison ivy that can cause a number of rashes. Because of these issues, it is important to have all employees wear proper clothes to prevent exposure to these dangerous insects, rodents, and plants.

Sun Exposure

Sun exposure becomes more of an issue as the warm weather appears more often. If you have employees who work out in the elements, it is important to prepare them for heat stress and sunburns. It can be easy to forget about the dangers of the sun when the temperatures are more mild. Sunburns in April are just as dangerous as sunburns in July. Help your staff deal with these exposures by providing proper breaks, shade and plenty of access to water.

Dust and Allergies

Seasonal Allergies can be a debilitating problem for many people. In some instances the problem is so severe it can cause some suffers to have problems with asthma. These problems intensify in the Spring Months because of the high levels of pollen. If you have employees who work primarily indoors, improving the indoor air quality with proper ventilation, maintaining the HVAC System, and using non-toxic cleaning supplies. If you have employees working out in the elements, it is wise to have morning toolbox talks about what elements your staff are dealing with this time of year and how they can prepare to deal with those elements.

Slips, Trips, and Falls

In many parts of the country, Spring is a time when enormous amounts of snow melt. This creates a very muddy environment for your employees. If the area of the country your business operates in deals with snow melt, it is important to prepare your staff for slippery conditions. This preparation is paramount to creating a safe work environment during the Spring Months. If your business is open to the public, there is extra liability if customers are hurt on your property. Dealing with these issues in advance should reduce the frequency and severity of insurance claims.

9 Winter Driving Safety Tips

Tips for how to make Winter Driving safe for you and your employees

Safe driving begins long before a driver gets behind the wheel of a car. This is true in Winter as well as any other time of year. It is especially important when it comes to the Winter Driving Season. The Winter Driving Season is especially dangerous because of the conditions presented out on the roads and the presence of ice. Preparing for these risky conditions occurs before, during, and after getting behind the wheel. Here are nine Winter Driving Tips to help you, your family, and your employees safe out on the roads for the rest of this Winter.

Winter Driving on Snow and Ice

Before Winter Driving

Prepare your car

Safety when it comes to Winter Driving begins long before a person gets behind the wheel. Preparing your car in the Fall before the weather turns bad is a good idea to prepare for a saving Winter Driving Season.

Check under the hood

When you have an oil change during the Fall and Winter, it is important to have the mechanic looking under the hood to check to make sure your car is prepared for the Temperatures the car is facing. It is important to ask them double check the levels of your cars antifreeze, the hoses, the heater, the defroster, windshield wipers, the washer fluid, the lights, and the battery.

Stock a Winter Weather Survival Kit

Stocking your car with a Winter Weather Survival Kit is a great idea to prepare yourself for the unfortunate event that you are stuck in your car for an extended period of time. What is included in the kit depends upon how extreme the weather is where you live. No matter where you live the kit should include: blankets, gloves, socks and a hat. Also included should be an ice scraper, a flashlight, jumper cables, water, snacks and road flares or reflective warning triangles. Additionally, you should consider adding kitty lidder or a bag of sand to help with traction, tire chains, hand warmers, and duct tape because every situation runs a tad bit smoother with duct tape.

During Winter Driving

Slow Down

When behind the wheel, it is important to slow down and increase space when driving. Many people make the mistake of thinking a four wheel drive vehicle allows them to drive faster at a normal speed during Winter Conditions. This is a mistake far too many drivers make in Winter. The only way to safely drive on ice is to take your time and give yourself plenty of room between other vehicles.

Dont panic

If you do start to slip on ice while driving, it is best to let your foot off of the excelerator in order to slow down as opposed to slamming on the brakes. Remember to steer in the direction you want to go. Steering may be more important than braking in some conditions.

Be conscious of the three main types of distractions

There are three types of distracted driving: Cognitive, Manual, and Visual. A cognitive distraction deals with a drivers cognitive ability to pay attention to the task of driving. A manual distraction is anything that causes a driver to take one or both hands off of the steering wheel. Finally, a visual distraction is anything visually appealing that takes the drivers view away from the task of driving the car.

After Winter Driving

After an accident, contact the carrier quickly

It is important to contact your insurance carrier quickly after an accident. First and foremost, you need to take care of the health and well-being of anyone involved in an accident. Once everyones safety is accounted for it is important to give the insurance carrier a call. It is important to realize that this part of the insurance process is the responsibility of the carrier and not the insurance agent. It is a good idea to keep the agency in the loop, but do not be surprised and do not become upset when they direct you to call the carrier. This is how the insurance process works.

Take photos

If you have a mobile device with the ability to take and save pictures, it is important to take pictures of your damaged vehicle and of any other vehicles involved in the accident.

Keep Receipts

Damages may be reimbursed for repairs to your car, but the insurance carrier is going to require receipts for anything you purchase related to the repair of your vehicle. This is why it is important to call the insurance carrier quickly. The carrier can guide you through the insurance claims process and help prevent any unnecessary spending on your part.

My Insurance Question: 10 Summer Safety Tips

10 Summer Safety Tips for your Business.

Summer Safety begins and ends with dealing with the Summer Heat. Depending upon where your business is located and the industry you operate in, how you deal with the Summer Heat may be drastically different. Here are ten tips to help you protect your employees while dealing with the Summer Heat.

Have your A/C Unit checked

Most people think that heat related injuries only concern businesses that have employees who work out side, but when an A/C Unit goes out during the month of July it can have an extremely negative impact on your office and your employees. Having your A/C Unit checked in the Spring can prevent a bad situation from happening. The earlier in the year you get this done, the better.

Communicate with employees

Employees listen to their managers and key employees within your organization. If you communicate through those key employees what is important to the organization, the employees are much more likely to follow through with actions you want them to follow. Communication should be direct and ongoing. The more your employees hear something, the more likely they are to follow through.

Hydration

Drinking adequate amounts of water is important for all employees at all levels of your organization. That is true if they work primarily out in the elements or if they are an office employee. In the Summer this is especially true for employees who work out in the elements. Periodically providing cool drinks for your employees is always a good idea. Talking about hydration with your staff is also important to get them to take hydration seriously.

Sunscreen

Sunscreen is necessary during the Summer Months. It is important for you to provide sunscreen for your employees and to talk about using it. Encourage your managers and key employees to model the types of activities you want the rest of your staff to copy.

Proper Clothing

Depending upon the industry your business operates in and the climate of the area, adequate clothing may defer depending upon the weather your employees face. Preventing sunburn and other types of heat exposure is crucial to keeping your employees healthy and happy.

Adjust your operating hours

It is important for your acclimate your employees to the weather as the Summer heat begins. Gradually increasing exposure to the environment is the best way to help your employees deal with heat exposure throughout the entire Summer. Depending upon how hot the weather actually is and the type of activities your employees partake in, it may be necessary for your business to adjust the operating hours during the Summer months.

Take Extra Breaks

Taking additional breaks is a great way to deal with an increase in the temperatures during the Summer. When the temperatures rise, it is not a time for your employees to attempt to show how tough they are. More often than not this will result in someone dealing with a heat related illness. Protect your employees by taking additional breaks.

Notice the signs of Heat Related Illness

According to the Center for Disease Control, ‘From 1999 to 2010, 8,081 heat-related deaths were reported in the United States’. That is more than 800 people each year who die from heat related illnesses. Familiarizing yourself and your managers with the early signs of heat exhaustion can go a long way towards preventing your employees from becoming a victim of a heat related illness.

Mosquitoes

Mosquitoes and other insects come out in great numbers during the Summer Months. Helping your employees deal with them will keep those employees happy and healthy. If your employees stay at your facility, there are steps you can take throughout the property to limit exposure to insects. When employees are working at third party locations, it is important to periodically talk to the employees about how to prevent insect bites.

Prepare Your Vehicles

If you have employees who operate automobiles as part of their job, it is important to help those employees maintain the vehicle so that they will be able to withstand the extreme temperatures all Summer long. It may be necessary for your business to buy car windshield sunshade and to require all employees to use them if they are going to be away from the vehicle for a certain amount of time. Making sure the AC Unit in the car is in tip top shape is important to keep your employees cool and the cars operating throughout the year.

June is National Safety Month

What are you doing during National Safety Month to make sure your Business is as Safe as possible?

Every year National Safety Month is recognized during the month of June and according to the National Safety Council, ‘National Safety Month focuses on reducing leading causes of injury and death at work, on the road and in our homes and communities’. Safety should be at the top of the priority list for any successful business. Not focusing on safety is a very short-sided way to run a business. Businesses with an extra emphasis on safety tend to experience less frequent and less severe injuries to their employees. This leads to less lost time by injured employees, less insurance claims reported by the business, and lower insurance premiums as a result of the safe environment.

June is National Safety Month

Why is safety important?

Having a safety workplace can help your business in many ways. First and foremost it is the right thing to do for your organization, your customers, and your employees. If you operate a safe business it will save your business time and money by not having to deal with injured employees as frequently. It also will save your business when purchasing commercial insurance. Safe workplaces typically have a better experience modification rating than other businesses who do not emphasize safety.

How does a business design a safety program?

The design stage of a safety program will depend upon the location of your business and the industry you operate in. Obviously, if your business operates in Florida there is not much of a need for you to train employees how to operate in the snow. If you are located in Iowa, you may not need to prepare for hurricane season. The same can be said for the industry you operate in. A construction company will not need the same protocols in place as an accounting firm. Because of the uniqueness of each individual business, it is important to consult with your key employees, advisers, and even your insurance agent. All of these people can bring their own experiences to the design of any safety program and make it more complete.

June is National Safety Month and in honor of this celebration of safety this is an infograph about slips trips falls-

What should be included in all safety plans?

Heavy lifting

Any employee who has to lift heavy objects should be prepared to lift with their legs and not with their back. Many employees want to show a can-do attitude, but it is important to let all employees know that safety and their health are more important than impressing anyone with brute strength.

Slips, trips, and falls

Slips, trips, and falls are the most common insurance claim. Especially for retail and restaurant businesses that are open to the public. Even if your business is not open to the public, it is important to prevent employees and any third parties who come on to the property to be prepared for slips, trips, and falls.

Ergonomics of the workplace

Most businesses operate in the technological age. Because of this fact, many employees spend a majority of their time sitting at a desk and typing or staring at a computer. Repetition injuries like carpal tunnel can be severe and so can eyesight damage from long-term damage from computer usage. Being mindful of the ergonomics of the chair a person is sitting in, the equipment surrounding their computer, and the light that is being emulated from the computers can do a lot to prevent long-term damage due to ergonomics within your staff.

Tips for implementing a safety program.

Once you have designed a safety program, it is equally important to effectively implement it. This must start from the top of your organization. The more involved the owner and key employees are in the implementation of a safety program, the more likely all employees will take it seriously. There should be a schedule for ongoing meetings and they should be documented. These meetings do not have to be extremely time-consuming. Typically 15-30 minutes a week is adequate. It is important to periodically request feedback from all employees and to have some sort of open door policy for employees who may not feel comfortable speaking up in front of their coworkers. No matter what implementation you find is right for your business, it is important to document it and to stick with it. Documentation will come in handy when or if you experience an injured employee. Your insurance agent will be able to use the safety program as a way to show the insurance carrier you are taking the proper steps to prevent this occurrence from becoming a regular part of your business.

Portrait of young engineer taking notes for National Safety Month.

Common Types of injuries

Fatigue

Fatigue is an enormous problem in today’s business climate. Especially for businesses that operate in an have employees doing physical work. Adults need seven to nine hours of sleep each day to reach peak performance, but nearly one-third report averaging less than six hours.

Driving

IF you have employees who drive to multiple locations throughout the work day as part of their normal duties, you need to train those employees how to drive when they are on the job. It is a good idea to pull their motor vehicle records on a yearly basis as well. Never assume a responsible employee is also a responsible driver.

Workplace Violence

Unfortunately, workplace violence is more common than most business owners think. Each year more than two million people report being a victim of workplace violence. For this reason, it is extremely important for you as a small business owner to come up with a plan to prevent and how to deal with any and all forms of workplace violence.

Slips, trips, and falls

Slips, trips, and falls are the most common form of insurance claim. Especially for businesses that are open to the public like a restaurant. Fortunately for these types of businesses, these claims are also typically not very severe, just frequent. No matter what type of industry your business operates in, it is worth your while to address slips, trips, and falls that may happen at your facility.

Drugs in the workplace

According to the Surgeon General, nearly 21 million Americans live with a substance use problem. The same study showed three-quarters of these people are employed and as a result of their addiction, they miss 50% more time than employees without a substance abuse disorder. Construction, entertainment, recreation, and food service are four industries that have twice the national average of drug abuse in the workplace. If your business operates in one of these areas, drug abuse in the workplace is something you should address with your staff.

Winter Driving Safety Tips

This Winter has been a colder then average year for a majority of the country. When the temperatures plummet life keeps churning along. For this reason, many people are forced to get out and driving in dangerous conditions in order to get to work. Here are several tips to help you get to where your going safe and sound.

Preparing Your Vehicle

Stocking your car with a Winter Weather Survival Kit is a great idea to prepare yourself for the unfortunate event that you are stuck in your car for an extended period of time. Additionally you should have proper maintenance done to prepare your vehicle for the colder months. Much of the maintenance that needs to be done depends upon the area in which you live and how cold it actually gets. Additional antifreeze is needed in many parts of the country as well as keeping chains available for when ice is on the roads.

Watching the Weather

Keeping an eye on the weather forecast is important during the Winter Months. Most snow and Winter Weather Storms are known a few days in advance. If you are at work and you know a storm is coming in at 5:00 PM. It might be a good day to leave the office at 3:00 PM. Keeping an eye on the weather can help you be prepared when the conditions are less than ideal.

Drive Slowly

The only way to drive safely on ice is to go slow. Four wheel drive will help you get out when you are stuck in the ditch, but it will not make your brakes miraculously work when you hit a patch of black ice. When you do hit ice it will only mean you have four tires slipping instead of two. Driving slowly and giving yourself plenty of distance is always the best way to drive when you are dealing with snow and ice.

Breaking Down or Getting Stuck

Having a Winter Safety Kit in your car is the first step to dealing with a situation where you are stuck on the roads when the temperatures are cold. Many sporting goods stores have many of the supplies you may need to keep handy. An emergency sleeping bag or at least a blanket should be available. Some snacks and bottled water are a good idea as well.

Stay Home

The best way to prevent having to use any of these tips is to stay off the roads and do not drive unless you absolutely have to.

5 Ways a Safety Program Can Help Your Business

Insurance is one of the biggest expenses for a small business. If there is a way to save, the extra cash flow can help a business immensely. A well-documented safety program are a solid way to lower what a business pays for insurance coverage. An effective safety program does not have to take an enormous amount of time away from your business. If implemented properly the program can cause your business to have less injured workers, lower your insurance premium, lower the amount and severity of claims, prevent your businesses insurance rates from increasing when a claim does occur and it can prevent your business from being dropped from coverage altogether. If a well-documented safety program is implemented properly it will be a win-win situation for both your employees and the bottom-line of your company.

How can a safety program help with your commercial insurance premium?

Here are five ways a well-documented safety program can benefit your business.

Less Inured Workers

Safety and preventing injuries is simply the right thing to do. Safety is the right thing for your employees because they will experience less injuries on the job. Safety is the right thing for your business because you will experience less injured workers having to take time away from the job. This will decrease the stress on the rest of your workforce and it will lower or eliminate costly insurance claims that can be a financial disaster for your business. Doing the right thing may seem simple and obvious to most business owners, but many businesses do not take the time to implement a thorough safety program and in the long run it costs them immensely.

Your business can get a better rate on insurance premium

Insurance carriers are more likely to offer your business better credits and discounts if your organization has a well-documented safety program in place. The program shows that your business operates more like a well-oiled machine and less like a rusty old farm tractor. Documentation is especially important to this program. If you do not have documentation of this program, you might as well not have one for insurance purposes. The documentation will help your agent to negotiate better coverage and for the underwriter at your carrier to offer deeper discounts on premium and more credits toward your policy.

Less Severe Claims

When a thorough safety program is in place, the business will experience less accidents. The severity of those accidents will be less. Additionally, if you incorporate a return to work program as a part of the program; injured workers will return to work more quickly. This is extremely important for your insurance policy because the quicker a worker returns to work, even in a limited capacity, the more likely they are to return to work permanently. This can impact the amount of a claim. How much your insurance carrier has to pay out for claims in a given term impacts your businesses experience modification rating. This is one of the few factors that carriers use to determine what they will charge your business for insurance premium. When injured workers do not return to work and stay on workers’ compensation for extended times, it can negatively impact your experience modification rating. This rating along with the industry your business operates in are the two most important factors that determine your rate for insurance premium.

When incidents occur, your business is less likely to have insurance premium rates go up.

When accidents occur; more than likely, your rates for commercial insurance are going to increase. They are less likely to be increased because of just one accident or a string of minor claims, but in the landscaping business eventually a large claim will occur. This is simply the nature of the business. If you have a strong safety program in place, your insurance agent can use the program to explain how the claim is more of an outlier and not a signal of how your organization does business. When a large claim does occur; if a safety program is in place and it is well documented, your insurance agent can use the program to show the underwriter that this incident is not a sign that your business will have more claims in the future.

Safety programs can prevent your business from being dropped altogether.

If you have several claims or one large claim during one insurance term, the insurance carrier may consider refusing to offer coverage moving forward. If this happens and your business cannot find a carrier on the open market to offer coverage for your business you may be forced to buy some coverages from the state provider. For instance, if your business is looking for workers compensation insurance in California you are already operating in the most expensive state in the country to purchase coverage. The assigned risk provider is sometimes referred to as the provider of last resort, the state fund or the state pool. This provider of last resort is typically significantly more expensive than the open market. In most states once you are forced to purchase coverage from the state provider you must continue purchasing from that provider for a period of usually two or three years. This is designed to deter businesses form having excessive claims. A safety program can help prevent this from happening to your business. Just like how your insurance agent can use a well-documented safety program to prevent an increase in premium they can also use it to find some coverage on the open market.

How to create a return to work program that is a win-win

A return to work program is part of a businesses over all risk management plan.

If done well a return to work program can benefit both the employer and employees.

Returning to work can be a hassle for employees to navigate. Anything an employer can do to make the process easier for their employees will benefit the employee as well as the company in the long term. That process should start before the injury occurs by putting an emphasis on safety in order to prevent the injury from occurring in the first place. Unfortunately, if you are in business long enough an injury to one of your employees will inevitably occur. When it does, helping your employee get the medical care they need and helping them get back on the job promptly can be crucial to the success of your business. Here are 4 ways an effective return to work program can help your business succeed.

Put your return to work policy down in writing: Why putting this program in writing is that the process of putting this policy in writing can help you determine what are the issues that employees actually face when they are dealing with injuries and how to best help them through this process. You should have some key employees from all levels of your business be a part of this process. Maybe even include someone who recently had an injury at work. These in-sites may help you determine some risks your business faces that you may be able to prevent future injuries.

Develop a process for Communication throughout the process: Once you have a return-to-work program in place you need to ensure all of your managers read and understand the policy clearly and concisely. It may be effective to have one person be the point person for the program, but it is equally important to have them train all the other managers and upper level employees about the program. This is important you do not want to be left in a bind if that person is on vacation when an injury occurs or if that employee leaves the organization altogether. Make sure your employees understand how this program impacts the bottom line. Helping them communicate this program down through the ranks via meetings, email and your intranet.

Start the plan immediately upon injury/illness: The moment an injury occurs the return to work program needs to be implemented. This should be outlined clearly in the program. Documenting everything is crucial to protect the business and to ensure the employee gets the proper medical attention and wage reimbursement through your workers’ compensation insurance policy. The quicker you implement this program it will instill confidence in the injured employee that you care about their well-being and will contribute to them wanting to get back to work more quickly.

Close your claims quickly: Once your employee is recovered and back on the job, it is important to close the workers’ compensation claim quickly. Carriers will leave the claim open for a while after the employee returning to work. They do this to make sure the employee does not reinjure themselves upon returning to work and needing additional benefits. Remember that the underwriter may leave this claim open and it can cause your loss cost ratio to be much higher than it actually is. If you are renewing your policy this can negatively impact what you pay for premium. For this reason it is important to periodically check in to make sure the claim is closed as soon as it possibly can.

How Competitive Workers Compensation Rates Develop

Workers compensation rates are developed by claims and premium paid within each industry, per state over a period of multiple years. In most sections of the U.S., each State sets a minimum and maximum rate for each industry code. Within the minimum and maximum rates established by the state competitive insurance companies are able to file their rates for each industry depending on how competitive they want to be. Depending on the characteristics of a particular business, insurance companies could be willing to discount or increase their rates. Each state also sets a minimum and maximum amount of credit or debit an insurance company can use when quoting. When researching rates, lower rates indicate an industry that is less likely to suffer a claim and higher rated industry codes indicate a higher risk of a claim. The lower hazard industries have more options therefore more competition than the higher hazard industries. More competition typically means those industry types are going to pay considerably less than a higher risk industry with only a few options willing to quote.

Identify the areas that cause the greatest concern for workplace injuries. Business owners in all industries can increase their chances of paying the lowest workers compensation rates by implementing proper policy and procedures to prevent claims. Which policy and procedures to implement will not be the same for all industries. A restaurant would have different exposures that could cause a claim than a remodeling contractor. When quoting your business, make sure you highlight the areas that your business has implemented that prevents claims. Brag about the areas that make your business different than other businesses in the same industry. In my opinion, most business owners and agents are focused on which insurance company has the lowest rate. Instead, the business owner and agent needs to tell the story of that business and the components of that business that make it attractive to insure. Just because an insurance company has one of the lowest rates for a particular industry doesn’t mean they are the most competitive option. Insurance companies that are willing to apply credits/discounts based on business practices to prevent claims will typically be the most competitive options. If your agent is not asking about your business practices, they are not properly selling to their underwriters to get the best possible pricing. Below is a short list of ways a business owner can help reduce their workers’ compensation costs. These are the things that insurance company underwriters want to know about in order to properly price their quote.

Business owner is active within the business. When a business owner is active and around employees, typically those employees follow the policies and procedures more carefully.
Proper training of how to handle situations that could cause workers comp claims. If you own a convenience store, how should employees handle a robbery?
Return to Work Program. History shows that the sooner a business owner can return the injured employee to work the less expensive the claim will be. Even if you have to create a light-duty position temporarily.
Establish a safety program and enforce discipline for not following proper procedures. This can positively impact your workers compensation rates.
Conduct safety meetings. Constantly reinforcing helps prevent injuries.
Employee Training for the job they are performing, equipment they are using.
Designate Key Employees to be responsible for holding employees to the standards of your business
Update your equipment when needed, make sure it has the proper guarding to prevent injuries.

Toolbox Talks. What are they and are they helpful?

Toolbox Talks is a term that spawned from the construction industry. It refers to when companies or crews would meet briefly in the morning. These informal safety meetings help keep your company’s safety procedures, rules regarding equipment, personal protective equipment, job assignments and expectations on the forefront of your employees’ minds. This type of meeting can be shorter and used more to reinforce formal safety meetings or training programs.

Find out how Toolbox Talks can help your business at myinsurancequestion.com

These meetings help to prevent employees from cutting corners to get a job done more quickly. A prime example is an employee not taking the time to walk back to the truck to get safety glasses. By constantly reminding your staff about safety you can reinforce the importance of safety in your company culture. This can help you as a business owner save money on insurance premium over the course of many years.

It only takes one big claim or many small claims in one policy period to hurt your businesses reputation with an insurance carrier. When your business is not safe it can drive up premium and thus effect the growth of your company. An even worse result could be having to lay someone off due to the rising cost of insurance. This does not have to be the case and these Toolbox Talks can help to prevent just that.

How can ToolBox Talks help your business save on commercial insurance?

Obviously some accidents happen and they are not avoidable. Carriers do take that into account when looking quoting your business, especially when you have had a claim. If you have procedures like Toolbox Talks or safety meetings on a regular basis the underwriter may view the loss as more of a shock loss or an uncommon accident. If these talks are in place they are much more likely to view your accident as an outlier and less of a sign of more to come.

When planning topics for your Toolbox Talks you may find it is hard to come up with interesting topics. If you are having trouble coming up with topics to cover your insurance agent or carrier can help you with ideas or even provide some material for you to cover. Insurance carriers and agents want you to have a safe and informed workforce. They want this so they can insure your business for a long time to come. No matter the size of your business or how much work has to be done, you will be able to find the importance and benefits of doing these quick meetings. Below you will find a quick outline on how to operate a meeting effectively and efficiently. These quick meetings are more to reinforce what you have discussed previously and to act as a quick reminder to your workforce that you want them to be safe. More importantly, you want the workforce to know that the business culture is one that wants safety on the forefront of the minds of the employees throughout the work day. When safety becomes a habit it benefits not only the business owner but the workforce as well. There is never a better day than today to get started on a structure format to educated and reinforce employee safety. Safety is and always should be a proactive approach instead of a reactive one.

Below is a quick example of a format for Toolbox Talks:

Focus on one subject per talk
Choose a subject that involves your group on hand
Avoid vague statements. Be specific and to the point when delivering the message.
Give an example of what you expect or from a past experience
Leave time for questions or concerns so that everyone leaves on the same page.