Work Place Safety Ignored in a Poor Economy?

How do corporations manage to increase profitability in a soft market?

First and foremost, would a business even be able to survive? Businesses have faced tremendous challenges over the last several years. The hardships incurred were beyond anything experienced by this country since the 1930’s and with no apparent end in site. With limited credit available for businesses to obtain, they were forced to take immediate action in order to survive.  Unfortunately, the immediate action most often resulted in a work force reduction, a reduction in work force safety and risk management programs or in some cases both actions were deemed necessary for survival.

With reduced workforce and decreased safety programs, the American worker faced new and dangerous challenges in the workplace.  OSHA Regulations were blatantly disregarded, workers were trained less and expected to work more.  During the last several years, RIM has investigated numerous, preventable work place accidents as the employee’s well being was not being held as a priority. An increase in employer liability claims as a result of ignoring work place safety is the latest trend. Your RIM Team views this disregard for human safety as unacceptable. RIM understands that no matter what the operational cost, the loss of one human life is one too many.

On another note, insurance companies providing workers compensation also face great challenges. Underwriting losses continue to climb, premium erosion continues, and some insurance companies who invested their premium dollars had minimal return on invested capital of 4.5% or less.

Given all these challenges, many companies choose to make cuts in the departments of loss control and safety. Why? Typically these departments are used as a reactionary measure, such as a type of training after an accident has occurred or as a reason to confirm the desire to cancel an unfavorable Insured.  They have been seen as a complete cost to the Insured in the past rather than a form of cost reduction and business retention.  Most insurance companies just try to write more business.  RIM’s team of experts have found insurance companies who do put loss control and safety programs on a more proactive platform identify risk earlier, and subsequently increase profitability by reducing their overall loss ratio.  Your RIM Team uses a revolutionary front-end system of Loss control that is changing the entire worker’s compensation industry.  By implementing risk levels and alerts, the RIM Team alerts the underwriters of the high risk business in quote status, thereby eliminating poorly written business up front.  RIM also uses its loss control process to help Insurance companies from falling into that industry-wide mistake of renewing poor risks.

Additional RIM Team programs such as the front end risk incentive program, the safety reward program, the employee mentorship program, and the risk platforming program empower you to write better business and retain better business by decreasing loss on the front end.  Be proactive and increase your bottom line with RIM.

Leave a Response