A safety mentality that drives your insurance rates down

Just as you can save money by being a rating one driver, business can save money by being a rating one employer.

Victoria’s WorkSafe authority declares that “Victoria is the safest place to work in Australia”.  In 2006/07, Victoria experienced less than 30,000 workplace injury claims for only the second time in history.

At a rate of 11.32 per 1,000 workers compared with 12.19 claims per 1,000 workers the previous year, Victoria’s safety mentality gives Victorian employers a competitive advantage.

Ongoing strong safety performance and sound financial management has allowed the Victorian Government to make four consecutive 10% cuts to average premium rates.  A safety mentality drives insurance rates down!

The cost of workplace injuries goes beyond the actual cost of treating the injury and rehabilitating the worker.  Every injury feeds into a complicated formula that impacts on future insurance premiums.

The actuary calculations look at the propensity for an injury to cost more in the future.  Is it likely to recur or require further treatment in the future?  Are other employees likely to incur a similar injury?

The WorkSafe authority has successfully pushed the message that workplace safety is everyone’s responsibility.  The safety mentality must flow from the top down.  Management must lead by example and enforce safe practices.

But everyone must be on the look out for unsafe work practices.  Report it and do something about it.  Don’t wait for an accident to occur.

Despite the admirable performance in Victoria, the authority still had to pay more than $1.1 billion in total compensation payments for injured workers in 2006/07.  That’s $1.1 billion that would have come from employer insurance premiums.

Employers are required by law to maintain a safe and healthy workplace.  That includes everything from noise level to material handling procedures, stress and pace of work and preventing falls.

Insurance premiums are miniscule compared with penalties for breaches of the legislation.  Employers can be fined nearly $1 million for each breach of the Occupational Health and Safety Act.

How confident are you of your safety compliance?  Could you do more to cut your insurance premium?

Keeping a record of all accidents, injuries and near misses is the first step to greater control.   You must be in position to identify your weakest links in occupational health and safety management.  Appoint an OH&S Co-ordinator and ensure all staff realise their reporting obligations. 

Reporting is not a dirty word – it’s a must.

Independent occupational health and safety auditors can assess your organisation and identify hazards that you might overlook.  They rate your level of risk in terms of statutory compliance, best or good practice, generic risk and Australian Standards.  You might be surprised to find room for improvement.

Evidence of sustainable return to work policies for injured workers can also reduce your insurance premium.  Returning to meaningful work is good for the injured worker as well as relieving the insurance system of ongoing income supplements.

Performing better than your industry classification cohorts will also deliver insurance savings.   A safety mentality creates a loyal workforce, reduces unnecessary injuries and trauma and saves substantial dollars in insurance premiums. 

To find out more go to the OHS Centre.