Worker’s Comp Payouts Rising Faster Than Inflation

Despite a drop in the number of serious workplace injuries, employers' costs to injured workers and their medical care providers for serious job-related injuries resulting in absences from work of six days or more climbed faster than inflation and soared 12.1% from 1998 to 2002, during that period, reaching $49.6 billion, according to the Liberty Mutual Workplace Safety Index.

The good news from the latest results in the annual survey, which were released toward the end of last year, is that the ranking of the top causes of those injuries remained largely unchanged, providing employers and their safety managers with a clear roadmap for preventing the most expensive injuries.

The top five job-related injuries according to Liberty Mutual, are:

• 
  Overexertion from excessively lifting, pushing, pulling, holding, carrying or throwing an object, at a cost of $13.2 billion
• 
  Falls on the same level, costing $6.2 billion
• 
  Bodily reaction injuries from bending, climbing, slipping or tripping without falling, $5.3 billion
• 
  Falls to a lower level, $4.6 billion
• 
  Being struck by an object such as a tool or a worker falling from above, $2.8 billion

The top causes of injuries identified by the index may not make the front page but they're probably driving your costs.

By implementing a plan to lower incidents workers compensation clients have been able to cut serious repetitive motion claims by 58% in two years. Those plans that have the greatest impact share five key steps.

1. 
   Identify the injuries that drive your workers compensation costs, using the index as a starting point.
2. 
   Prioritize the ones you want to address.
3. 
   Set clear targets for reducing each injury.
4. 
   Put in place the tactics and training that will prevent these injuries.
5. 
   And regularly track performance and update the plan."

The following are among the good starting points for evaluating and preventing the top five causes of workplace injuries:

• Overexertion. Use mechanical lifting aids to reduce the need to bend, reach and twist.
• 
  Falls on the Same Level. Keep floors free of holes, water, grease and other potential fall hazards. Provide adequate lighting for all interior and exterior walking surfaces.
• 
  Bodily Reaction. Guidelines are similar to those for overexertion, falls on the same level and falls to lower level.
• 
  Falls to a Lower Level. Use appropriate ladders capable of comfortably reaching work or storage heights. Regularly inspect and repair all ladders and lifting equipment. Provide handrails and slip-resistant treads for all stairs, and avoid storage of any kind on stair treads and walkways.
• 
  Struck by an Object. Train and supervise lift truck/forklift operators. Stabilize overhead storage. Restrict access underneath work areas. Use equipment and power tools only with the manufacturers' guards in place, and maintain all equipment and tools by following the manufacturers' guidelines.

Reprinted with permission from Nation’s Building News, August 85, 2005

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