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worker's compensation

You can be sure that direct costs, such as medical and indemnity
expenses, are covered by your policy.
 

But what about hidden or indirect costs? When you take a closer look, you’ll find that indirect, or hidden costs can stack up quickly:

• Time lost from work by injured employees

• Time lost by supervisors to investigate accidents

• Economic loss to an injured employee’s family

• Time lost by fellow employees

• Loss of efficiency due to break-up of crew

• Cost of training replacement

• Damage to tools and equipment

• Spoiled work

• Loss of production

• Spoilage – fire, water, chemical, explosives, etc.

• Failure to fill orders, loss of customers

• Loss of employee morale

• Fines by regulatory agencies

You may also incur fines from OSHA, hearing costs, third-party liability and legal actions and increased Workers’ Compensation premiums. In fact, hidden costs can add up to as much as four to seven times the insured cost — and that’s a conservative estimate.

What can you do?
You can take steps to reduce the hidden costs not covered by insurance by implementing an accident prevention and loss control program. An effective safety program can also help lower direct costs, including insurance premiums, compensation and deductibles.

A little training and education can go a long way. Ask a trusted employee to be
responsible for inspecting your premises and reviewing your operations monthly.
Ask each employee to identify and eliminate workplace hazards.
Maintain records to evaluate progress in hazard detection and correction.
Just taking a moment to follow these simple steps can save you time and money
and protect the lives and well-being of your employees.
Contact your local Farmers Loss Control Consultant to help you create a customized accident prevention program and ask about developing a self-inspection program for your business.