Inside this issue:

At What Cost?

Overlooking Worksite

Dangers

1

Helping to Save a

Life with CPR

7

Bending Over Back-

wards to Reduce

Spinal Injuries

8

April-June 2013

Quarterly Newsletter

Age when driving skills

start to decline: 65. Age

when most people stop

driving 85.

FUN FACT

SAVING LIVES. SAVING COMPANIES.

800.641.5990

In today’s workplace, the demands to produce are greater than ever. Increased

competiveness, growth objectives, and our nation’s recent economic crisis all in-

fluence the decisions organizations make in order to achieve success and main-

tainability. Unfortunately, the decisions made under these pressures often create

a workplace riddled with dangers and unsafe behaviors.

Too often, worksites have dangers that workers and supervisors look past for the

sake of process execution and an on time completion. While safety is the responsi-

bility of everyone on the worksite, it is the responsibility of the managers, execu-

tives, and owners as well. Unfortunately, many organizations simply pay lip service

to safety and workplace dangers resulting in a culture that allows for unsafe be-

haviors.

What many companies do not consider, though, is the fact that cost and productiv-

ity are directly associated with a strong hazard recognition and safety program.

Evidence has shown that accident prevention has not only saved millions of lives

by reducing workplace dangers, it also contributes to increased competiveness

and economic growth (International Social Security Association, 2010). This is an

important factor that business leaders should consider when assessing their com-

pany health and safety objectives.

The intention of this article is shed some light on what makes up the true cost of

looking past worksite dangers.

Direct and Indirect Costs

Direct costs are the insured expenses that cover the cost of the medical treatment

and compensation insurance to the injured worker. In 2003, employers spent

$50.8 billion, nearly $1 billion every week, on direct costs for workers hurt on the

job (O'Rourke, 2005).

At What Cost?

Overlooking Worksite Dangers

By: Shane Stuller

Insurance program costs. Hegburg, B., http://www.mashainc.com continued on next page

2

"The indirect

costs can be 4

to 20 times the

direct costs..."

At What Cost?

Continued

Increased Insurance Costs

Ligation and Legal Fees

Lost Production

OSHA Fines

Impact on Experience Modification

Unhappy Customers

Re-Hiring

Re-Training

Overtime

Schedule Delays

Poor Moral

The indirect costs can be 4 to 20 times the direct costs (Hegburg) and the impact of indi-

rect costs can vary considerably. Consequently, the magnitude of the potential of these

expenses and the importance of considering these costs cannot be understated, nor over-

looked.

OSHA’s Safety Pays (See Page 4)

OSHA has developed a program to assist employers in estimating the direct and indirect

costs of work-related injuries and their impact on a business’s profitability. By using profit

margin, average cost of an injury or illness, and an indirect cost multiplier, the program esti-

mates the amount of sales a company would need to generate in order to cover those

costs.

Generating New Business (See Page 5)

Besides evaluating the post-issue cost effects of looking past worksite dangers, companies

should also consider the effects it has on generating new business. Increasingly, owners,

developers, and investors are taking a closer look at who is going to be working on their

projects. Negative events, accidents, and lawsuits can have serious effects on a company’s

reputation. Being a headline on the evening news can cause business interruption, commu-

nity backlash, and of course, loss of customers.

In addition to reputation and perception, there also has to be substantial consideration

given to what is known as Experience Modification Rate (EMR), or MOD. In essence, an

EMR compares a company’s workers’ compensation claims to other employers of similar

size and type of business using an employer’s past experience to project future chances of

risk or loss. Moreover, the rating is a controllable expense. Experience modification rating

gives employers influence over the final insurance premiums they pay. It simply rewards

companies that practice effective safety and risk management techniques over those who

do not.

One instance of this aforementioned reward-penalize approach is during the Contractor

prequalification process. Typically, some of the criterion that goes into prequalification is:

integrity, work experience, qualifications of supervisors, financial conditions, and of course,

safety. The graphics below demonstrate how safety plays a role in the prequalification and

bidding process. Not only can a MOD Rate of 1.00 or more disqualify a contractor from bid-

ding work, but as shown, the rate has an effect on the contractor bid price.

While these costs can include claim costs, medical costs, and lost wages, they are just the

tip of the spear when considering the inclusion of indirect costs. Indirect costs are often

referred to as “hidden costs” that insurance does not cover. The following is just a short list

of the effects that indirect costs can have on an organization:

continued on next page

FUN FACT

Finger holes in bowling

balls have been found to

contain "substantial"

amounts of fecal contami-

nation.

April-June 2013

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800.641.5990

3

http://www.osha.gov/dcsp/smallbusiness/safetypays/estimator.html

continued on next page

At What Cost?

Continued

April-June 2013

SAVING LIVES. SAVING COMPANIES.

800.641.5990

4

How is insurance MOD used in bidding?. Hegburg, B., http://www.mashainc.com

At What Cost?

Continued

Safety impact at bid day. Hegburg, B., http://www.mashainc.com

continued on next page

This example shows

the current MOD

Rates for four contrac-

tors along with the in-

dustry standard of:

1.00.

This illustration compares those same four contractors on a

$10,000,000 project with $3,500,000 in payroll.

April-June 2013

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5

“there are a myriad

of reasons why an

organizations should

look to make a

positive change in the

way they manage

workplace safety.”

Why Change Is Vital

Beyond the financial implications of overlooking safety and workplace dangers, there

are a myriad of reasons why an organizations should look to make a positive change

in the way they manage workplace safety. Below are a few of the benefits from mak-

ing workplace danger recognition and safety management a vital part of your organi-

zation:

Worker Protection

Protect your workers from all safety and health hazards that may exist at your

workplace.

Create a Positive Culture

Create a better working environment free of workplace dangers.

Boost worker morale by involving the workforce in a culture that emphasizes

a safe workplace.

Improve communication among workers and management.

Encourage safety away from work as workers may take safe work practices

with them outside of the workplace.

Build a Reputation

Become a leader in your industry by providing a safe and healthy workplace

for your workers.

Attract skillful workers looking to join an organization that makes providing a

safe and healthy workplace a priority.

Save Money

Lower worker compensation insurance premiums.

Improve worker retention and reduce costly turnover.

Reduce worker days away from work to keep operations and production run-

ning smoothly.

Despite heightening pressures to produce and ever-changing workplace conditions,

organization’s costs are within their control. With a commitment, implementation, and

active involvement to safety from senior management, mid-management, and the

workforce, organizations can ensure workplace dangers do not go overlooked and

avoidable costs do not occur.

At What Cost?

Continued

FUN FACT About 3,000 people (U.S.) are hospitalized every year after

tripping over laundry baskets.

References on page 9

April-June 2013

SAVING LIVES. SAVING COMPANIES.

800.641.5990

6

Helping to Save a Life with CPR

By: Bobby McIlquham

“...about 92

percent of

sudden cardiac

arrest victims die

before reaching

the hospital, but

statistics prove

that if more

people knew

CPR, more lives

could be saved. ”

Every day, Americans wake up to a new, fresh beginning from the challenges they might

expect. But no one expects to wake up and know they might see the person next to them

suddenly experience cardiac arrest. Will you or someone around you know what to do?

Who will you call in the event of an emergency? Are you properly trained to assist in CPR?

According to the American Heart Association, about 92 percent of sudden cardiac arrest

victims die before reaching the hospital, but statistics prove that if more people knew CPR,

more lives could be saved. Immediate CPR can double, or even triple, a victim’s chance of

survival.

Employers and employees need to be aware of signs and symptoms that occur when some-

one begins experiencing a heart attack. Most heart attacks start slow with pain and discom-

fort, resulting in individuals to overlook the situation. With early detection by being checked

out with your physician, serious heart attacks can reduce significantly and reduce future

health problems. Signs and symptoms to look for in an individual who might be experienc-

ing a heart attack are:

Chest pain or discomfort in the center of chest that last more than a few

minutes.

Discomfort in the upper body (Arms, back, neck, jaw or stomach)

Shortness of breath

Other signs such as breaking out in a cold sweat, nausea or lightheadedness.

When an employer or employee begins experiencing these signs, immediate response is

crucial by dialing 911. The sooner a response team is on site to assist, the better chance of

survival that individual has.

If you come on to a scene where an individual suddenly collapses due to a heart attack, it’s

important to act fast to assist to the individual. The American Heart Association’s “5 links in

adult Chain of Survival” are:

Immediate recognition of cardiac arrest and activation of the emergency

response system

Early cardiopulmonary resuscitation (CPR) with an emphasis on chest com-

pressions

Rapid defibrillation

Effective advanced life support

Integrated post- cardiac arrest care

A strong Chain of Survival can improve chances of survival and recovery for victims of heart

attack, stroke and other emergencies. The first step when assisting a victim who is experi-

encing a heart attack is calling 911. If you are trained in CPR/AED, the next step is to

check the airways for obstructions/ objects that might be lodged in the throat. Check for

the rise and fall of the chest to determine if the individual is/ is not breathing and followed

by checking for a pulse. If you experience no signs of breathing, immediate CPR should be

applied.

In the event where someone is experiencing cardiac arrest, applying CPR can greatly in-

crease the chance of survival. Cardiac arrest can happen at any point in time, and with the

proper training of CPR, employers and employees with have the knowledge they need to

help save a life.

FUN FACT Overall your odds of

being struck by lightning

are about 5 times

greater at 9:00 am. than

they are at 3:00 pm.

April-June 2013

SAVING LIVES. SAVING COMPANIES.

800.641.5990

7

“...if these

simple steps are

followed, it may

help prevent

one [back

injury] from

occurring to

begin with.”

Preventing back injuries in the workplace is a consistent safety battle. This is true for

all work environments, whether a desk job, factory line, construction activity, or truck

driving. According to the Bureau of Labor Statistics, more than one million workers

suffer back injuries each year. Nearly one-fourth of all compensation indemnity

claims involve this type of injury, costing the industry billions of dollars in addition to

the physical pain suffered by employees.

Though there has been no proven method to completely eliminate back injuries, there

are many recommendations to aid in prevention. Administrative controls focus on

modifications to the work area, staffing, schedules, or procedures in order to reduce

the employee exposure. Some examples of administrative controls may be:

Train employees to utilize lifting techniques that place minimum stress

on the lower back.

Test the strength of employees so that assignments may be placed ap-

propriately based on capabilities.

Implement a physical conditioning or strengthening program to reduce

the risk of muscle strain.

Take frequent breaks when required to sit, stand, or engage in repetitive

motion for a long period of time.

Often, engineering controls are desired as well. Some examples of ways to reduce the

stress on the back by redesigning a job are:

Adjust the height of the work area to prevent reaching below the knee or

above the shoulder.

If lifting, reduce the size or weight of the object being lifted.

Install mechanical aids such as conveyors or pneumatic lifts to assist in

the material handling process.

Assure that chair is positioned so that the thighs are parallel to the floor

and feet rest flat and firmly on the floor.

A slight lean between 5-15 degrees will help to reduce the stress on the

spine and muscles.

Statistics show that after you have experienced one back injury, you are much more

likely to have a reoccurrence at some point in your lifetime. As previously mentioned,

there has yet to be a proven method discovered to completely fix this on-going battle

with back injuries, but if these simple steps are followed, it may help prevent one from

occurring to begin with.

Bending Over Backwards to Reduce Spinal Injuries

By: Lindsey Yowell

FUN FACT

Komodo Island

(Indonesia) has more

poisonous snakes per

square foot than any oth-

er place on Earth.

FUN FACT

Number of sports-related

eye injures in the U.S.:

40,000 per year.

April-June 2013

SAVING LIVES. SAVING COMPANIES.

800.641.5990

8

Referfences

Hegburg, B., The financial impact of safety. Retrieved from http://www.mashainc.com/

PDF/TheFinancialImpactofConstructionSafety_BobHegberg.pdf ISSA, (April 2004). The impact of the financial crisis on safety and health at work. Re-

trieved from http://www.issa.int/News-Events/News2/The-impact-of-the-financial-crisis-on-safety-and-health-at-work

O'Rourke, M., (November 2005). The impact of workplace injuries. Risk Management.

Retrieved from http://www.rmmag.com/MGTemplate.cfm?Section=MagArchive&NavMenuID=304&template=/Magazine/DisplayMaga-zines.cfm&Archive=1&IssueID=249&AID=2922&Volume=52&ShowArticle=1

United States Department of Labor. OSHA’s safety pays program. Retrieved from

http://www.osha.gov/dcsp/smallbusiness/safetypays/estimator.html

April-June 2013

SAVING LIVES. SAVING COMPANIES.

800.641.5990