Safety Issues Grew as the Company Expanded—Until an Effective Strategy Was Implemented.

Challenge

A growing, multi-location manufacturer with an annual revenue of $400 million began to experience issues with safety and compliance due to its expansion. First, its experience modification (MOD) rating was up to 1.16 and due to losses, the current workers’ compensation carrier was considering a non-renewal of the policy. Second, the dual responsibilities of being both the safety director and HR manager were becoming overwhelming and not allowing the person in charge to manage the loss frequency effectively.

Solution

After conducting a thorough loss and policy review and visiting a location, Hylant’s risk advisor understood the issues contributing to losses and formulated a strategy to reduce them. This strategy encompassed a three-pronged approach: management awareness, targeted loss source reduction and technology support for efficiency.

First, Hylant and the carrier conducted management training to help company leaders understand specific risks. They explained the liabilities and potential consequences the company and individual supervisors had accepted by allowing unsafe acts to occur.

Next, Hylant’s risk advisor established regular meetings to align the safety director, other company leaders and the carrier. This team began targeting specific loss sources and methods/training to reduce those losses. The workers’ compensation underwriters were invited to some of the meetings to understand how the manufacturer was addressing critical risks.

Finally, Hylant provided new tools and support to help make the safety director’s job easier and less time-consuming. Tools included access to the Hylant Risk Management Center, an online platform providing loss control support, training, incident management, and regulatory and claim reports.

Within the first two years of working in partnership with Hylant’s risk advisor and the carrier’s loss control representative, the manufacturer’s experience MOD has improved to .92. Recognizing the company’s risk management efforts, the carrier not only renewed the workers’ compensation policy, but it also lowered the premium.

Today, there is more loss control tracking and accountability. Safety policies are documented and enforced at all facilities. The team continues to meet quarterly, working to solve known issues and prevent new safety compliance issues from developing.