Last year, California enacted some major changes to its workers’ compensation statutes. One of the more significant provisions included increasing the maximum weekly benefit for both temporary and permanent disability to $602 for injuries occurring on or after January 1, 2003, $728 for injuries occurring on or after January 1, 2004 and $840 for injuries on or after January 1, 2005.

Workers compensation costs have skyrocketed in recent years due, in large part, to sharp increases in the cost of insurance. Last year, businesses and government organizations paid more than $15 billion in premiums for insurance. That figure is expected to rise to nearly $20 billion in 2003.

To curb the escalating cost of workplace injury and insurance, the exceptionally prone construction industry must make safety management a priority, both in word and in deed. In doing so, contractors can not only reduce the number of injured worker claims but can also lower their Experience Modification Rating—a statistical comparison made by the Workers Compensation Insurance Rating Bureau which uses recent policy history to compute a businesses’ experience modification and insurance cost. If a company’s prior claims are less than average, their future premiums are adjusted downward. This can save a business up to 50 percent on the cost of its workers compensation insurance.

The cornerstone of every safety management program is an Injury and Illness Prevention Plan, a cooperative employer/employee effort designed to ensure that the workplace is safe for all and that continual health and safety improvements are made. The plan, a California state requirement for businesses with five or more employees, should incorporate the following areas that can easily be recalled by the designation ICEHAFT:

I—Identify an employee as your company’s Safety Director, responsible for monitoring and making recommendations on health and safety issues. By doing this, you will send the message that safety is as important as quality.

C—Communicate safety rules and messages with your employees in a variety of ways. Solicit their suggestions on what they think can be done to prevent accidents and take action on these suggestions.

E—Enforce safety rules with progressive discipline. All employees should be held accountable for their part in workplace safety and health. Along with disciplinary measures, establish an incentive program, such as safety bonuses based on the achievement of pre-determined injury-free milestones.

H—Hazards in the workplace should be controlled and corrected as they become apparent. An initial assessment covering such topics as equipment and chemicals used, work practices and personal protective equipment, and compliance with rules and regulations should be conducted and monitored by routine self-inspections. Once hazards have been identified, feasible controls should be implemented.

A—Accident investigation is critical in preventing and controlling future injury. If left undetermined, the causes of your injuries will continue to add cost to your operations. Take the time to ask basic questions like: What happened and why? What were the underlying causes or contributing factors? What can still be changed or improved upon?

F—Fix workplace hazards as soon as they become apparent to prevent accidents down the road. This will also send workers the message that you care about their safety and are dedicated to maintaining a hazard-free environment.

T—Training programs should be conducted on a regular, ongoing basis. Worker safety and health training allows employees to learn their jobs well, bring new ideas into the workplace, reinforce existing ideas and practices, and put the Injury and Illness Prevention Plan into action. Well-trained employees benefit through fewer work-related injuries and illnesses and reduced stress. The organization benefits through reduced workplace injuries and illnesses, increased productivity, lower costs, and a more cohesive and dependable work force.

By adhering to the ICEHAFT formula, construction owners will be doing their part to protect their employees, while displaying a management level commitment to safety in the workplace—the first step toward lowering those out of control premiums.