Wouldn’t it be great if you never had to deal with an employee accident or, for that matter, even think about an employee getting injured on the job? If you haven’t been through it, trust me, it’s only a matter of time before you are eventually exposed to an on-the-job injury. Nonfatal workplace injuries and illnesses among private industry employees in 2008 occurred at a rate of 3.9 cases per 100 equivalent full-time workers, according to the Bureau of Labor Statistics. There were 3.7 million nonfatal occupational injury or illness cases in 2008. The good news is both those measurements are on the decline, each falling around 7 percent from 2007 figures. For injuries only, the incidence rate and number of cases both declined about 8 percent. Although specific figures are not available for carwashing, the 3.7 incidence rate in the repair and maintenance category was below the national average. Still, 71.2 percent (2.5 million incidents) of all nonfatal occupational injuries in 2008 occurred in service-providing industries. More than 31,000 of those were specific to automotive repair and maintenance, and nearly half of those involved cases with days away from work, job transfer or restriction. It is imperative that carwash and other car care business owners carry workers’ compensation insurance. Those who don’t are doing their employees and their business a great disservice and unnecessarily putting their company at risk. Accident Prevention Companies that maintain safe working conditions have an advantage when it comes to insurance and can even trigger a byproduct called “Saving Premiums.” In other words, providing a safe working environment for employees will more than likely help you save on workers’ compensation premiums. Maintaining a safe workplace takes some dedication, but it should be a source of pride for you and your employees. Here are some basic strategies you should consider: - Be consistent in having regularly scheduled safety training sessions with your entire staff and make sure all safety mechanisms located on carwash equipment are in working order and haven’t been tampered with.
- Consider awarding various safety bonuses predicated on objectives and goals that can be measured. In addition, let your staff get involved in safety meetings by encouraging them to provide suggestions.
There is real value in giving your carwash staff ownership in implementing strategies to maintain a safe and friendly working environment. Experience Modification Rate Companies with sound safety records will reap the benefits through lower premiums. The reality is that it all boils down to your Experience Modification Rate which is based on your carwash safety record and calculated by the National Council on Compensation Insurance (NCCI) or, in some states, an independent rating agency. A carwash owner with an average experience modifier of 1.0 would pay the manual premium. However, a carwash owner with poor loss experience will have a modifier greater than 1.0 and, therefore, pay more than the manual premium. Conversely, good loss experience resulting in a modifier below 1.0 leads to a lower premium. It is important to note that a history of small re-occurring or frequent claims can affect your premium more than one significant claim. Why? These indicate you have an ongoing problem that needs to be dealt with. Job Classifications As the risk of injury increases based on work position, so do workers’ compensation premiums. Lower-risk jobs, such as clerical positions, have a lower injury rate than more hazardous jobs, like carwash attendants. Keep in mind that the NCCI assigns classifications to every job type. When it comes to specifying job classifications within your carwash, make sure you double-check the classifications assigned to your employees by the insurance carrier. Failing to do so can be quite costly. Be Progressive Don’t sit back and wonder how and if a claim has occurred. Be progressive in managing and investigating workers’ compensation claims. By handling the situation (an injured worker) correctly, the ensuing investigation can ultimately help improve employee morale. Displaying management’s concern for a worker’s well-being will promote safety throughout the workforce. It is imperative that all employees be required to report all work-related accidents and illnesses to management as soon as they occur. Everyone is better off if an injured worker gets medical attention when needed since being proactive will assist the employee recover faster and return to work more quickly. Being proactive also lessens the likelihood that an employee will bring an applicant attorney into the mix. Finally, keep in contact with your injured employee; let him know you are concerned about his health and demonstrate that he is a valuable member of your carwash team. Avoiding any accidents may be nearly impossible, but you can help control the outcome by being involved. Proactively reviewing and managing workers’ compensation costs can save your company considerable dollars that are better off being applied to your bottom line. A former full-service carwash owner, Sam Furno is vice president of the Western Carwash Insurance Agency (WCIA), a division of Wells Fargo and a partner of the Western Carwash Association. He can be reached at 800.388.9274 or sam_furno@wellsfargois.com. Related Articles:
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