Warning: Rely Totally Upon Your Workers Compensation Carrier For Safety Support At Your Own Peril
Every year, when you purchase and receive your workers compensation policy, you eventually receive a workers compensation policy. Like most organizations you focus on safety and workers compensation claims and put the policy in the file. In talking with many organizations I find that they expect a lot of safety support from their workers compensation carrier. After all, the workers compensation carrier has promised a high level of service to get your business.
But Read Your Workers Compensation Policy. The Fine Print May Surprise You
Did you know that the services actually provided are not guaranteed and are mainly for the benefit of the workers compensation carrier? Don’t take my word for it. The workers compensation policy says it all. A standard clause in the policy reads:
“We have the right, but are not obligated to inspect your workplace at any time. Our inspections are not safety inspections. They relate only to the insurability of the workplace and the premiums to be charged. We may give you reports on the conditions we find. We may also recommend changes. While they may help reduce losses, we do not undertake to perform the duty of any person to provide for the health or safety of your employees or the public. We do not warrant that your workplaces are safe or healthful or that they comply with laws, regulations, codes or standards. Insurance rate organizations have the same rights we have under this provision.” (Source: Workers Compensation and Employers Liability Insurance Policy, WC 00 00 00 A, page 7 of 8, produced by the NCCI effective April, 1992)
Actually your workers compensation carrier has the right, but is not obligated, to inspect your workplace at anytime. However, many employers take this to mean that such inspections are formal safety inspections and even rely on these inspections to prevent worker injuries. In fact, your workers compensation policy indicates just the opposite. If an insurance company conducts an inspection the following stipulations actually are made:
Your workers compensation is NOT obligated that they will make safety inspections at all.
The inspections provided by your workers compensation carrier are NOT safety inspections. In fact they are only used to determine the insurability of the workplace and the premiums they will charge you (how self-serving it that!);
The insurance company “may” but is not obligated to give you a copy of their report on the conditions they find;
The insurance company “may” share recommendations with you but is not obligated to do so;
The insurance company is clearly indicating they are not performing a duty or service to provide for the safety and health of your employees.
The insurance company in no way warrants that your workplace is in compliance with state or federal laws (i.e., OSHA).
The Dirty Little Secret Is That Workers Compensation Services Are For Their Benefit, Not Yours
It is a mistake to totally rely on your workers compensation carrier to prevent worker injuries. This is further compounded if you change carriers. In the final analysis you will get less than you expect and your total cost of worker injuries will continue to reduce your bottom line profits.
CompEraser comes with on-line, on-demand resources needed to develop and implement an effective safety and health program. These resources include injury prevention, OSHA compliance, safety training, prompt injury response, workers compensation disability management, plus more. These resources are available 24/7 and used irrespective of which workers compensation carrier you select. Its patent-pending technology also provides unique financial reports for monitoring the effectiveness of your safety and health program on an on-going basis. For more information visit our website at www.CompEraser.com.
