Recently, Travelers Insurance released an “Injury Impact Report” which revealed the most common cause of workplace accidents and injuries. After reviewing workers’ compensation claims from different business sizes and industries, they listed the most prevalent types of injuries and the percentage they represent of total claims between 2010 and 2014. The number of total claims analyzed for the time period was 1.5 million. As expected, the number one type of workplace injury listed in the report was strains/sprains. Here’s top five breakdown:
5. Traumas Occurring Over Time 4% – Trauma occurs when a part of the body is injured by overusing it of straining it.
4. Accidents involving Tools or Equipment 7% – Certainly, those industries that require the use of hazardous tools and equipment will always present a significant risk for injuries involving cuts and contusions.
3. Being Struck by or Colliding with An Object 10% – This type of injury claim typically results at a workplace where there is a considerable use of mobile equipment.
2. Slips, Trips, and Falls 16% – This workplace injury is prevalent in stores, offices, and warehouses where there is likely to be slick flooring.
1. Material Moving and Handling 32% – This cause of injury tops the list because it typically results from lifting, moving, or carrying an item which crosses all industry classifications.
Knowing the most frequent types of injuries should help business owners and managers to develop and implement a targeted workplace safety program to reduce workplace accidents and injuries that result in workers’ compensation claims and ultimately an increase in premiums.
Costs of Claims per Injury Type
Although the cost of workplace accidents doesn’t necessarily impact your experience modification factor (number of claims does), it’s important to understand how each type of claim impacts the insurer. The Travelers Injury Impact Report broke down costs to the insurer on a per-claim basis as follows:
- Fractures $42,400
- Inflammation (traumas) $24,500
- Strain or Sprain $17,000
- Cut or Puncture $8,200
- Contusion $8,000 (severe bruise)
Lost Work Days
It’s important to take into consideration the lost wage reimbursement associated with each workers’ comp injury claim. Most employers focus only on the medical expenses and neglect to consider reimbursement by the insurer for time off. An example of average missed workdays reveal by the report is a follows:
- Sprains and strains – average of 57 missed workdays
- Cuts and Punctures – averaged 24 missed workdays
- Inflammations – 91 missed workdays
- Fractures – 78 missed workdays
Missed workdays also result in loss of production, missed deadlines, and even more claims since remaining employees must increase their workload to make up for injured employees who must stay home to recover.
Protect Your Experience Modification Factor
Know that your Mod factor has a direct impact on your cost of insurance. It makes good sense to establish a workplace safety program and issue ground rules for following it. Even the smallest of businesses, especially sub-contractors, can benefit by reducing or eliminating workplace injuries and accidents by employing a sound strategy for workplace safety.
For more information on workplace accidents, call the insurance professionals at Fairbanks Insurance Brokers at (949) 595-0284 during normal business hours, or contact us through our website 24/7. We’re willing and able to discuss all of your risks and how to financially protect your business with a complete and affordable contractors insurance package.
Here is What We Recommend
General Liability: Contractors General Liability will be the foundation of protection for your business. The coverage will respond if you or your employees are found liable for bodily injury, property damage, or have a products/completed operations complaint. The coverage also covers defense costs for your business to respond to any lawsuits brought by a third party.
Workers’ Comp: Many states will require contractors to provide workers’ compensation coverage for their workers before they can begin a project. Accidents will happen at the job site that can result in an employee becoming injured and missing work. Your workers’ compensation coverage will provide financial assistance for medical expenses and lost wages.
Surety Bonds: It’s very likely that your state will require you to be licensed before you can begin operations. Most states and customers will require contractors to offer a license or surety bond before you are allowed to bid on a job or begin working.
Commercial Auto: Typically, most contractors will have light and heavy vehicles that require commercial auto insurance to make certain their vehicles can be repaired or replaced in the event of an accident, vandalism, or theft.
Tool Coverage: Also known as Inland Marine Insurance, this policy will provide for reimbursement for expenses to repair or replace tools and equipment. Your tools represent an important part of your livelihood, so we always encourage carpentry contractors to consider this valuable coverage.
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