Pennsylvania Agriculture Insurance
In-Sync With Your Growing Agribusiness
We all depend on American agriculture's survival and growth, yet few of us understand the unique challenges facing today's farmers. Their love of the land must be matched by their knowledge of advanced techniques and equipment. Their growing investments of capital must be protected. A commitment to provide comprehensive Agriculture Insurance to American farmers is the foundation of Robertson Insurance & Risk Management.
Changing Your Focus To Positively Affect Your Bottom Line
Farming has always been a risky business.
As an agribusiness, how many on-the-job accidents did you have last year, and what was the impact to your Workers Compensation costs? If you want to spend fewer dollars this year, you need to do more than control spending or stop a few accidents - and we can help. Our approach to minimizing workers comp costs focuses on helping you to establish a safety program that is both compliant with Occupational Safety and Health Administration (OSHA) standards and designed to continuously improve, which has a significant, positive impact on your bottom line when you look at the big picture.
In today's business environment, these safety-related costs can be the difference between reporting a profit or a loss. Use these tips to understand how safety programs will directly affect your company's bottom line.
If it is important for your organization to measure safety as it relates to profitability, more accurate tracking should be done. For measuring data, safety costs can be divided into two categories:
1. Direct (hard) costs, which include:
- Safety wages
- Operational costs
- Insurance premiums and/or attorney's fees
- Accidents and incidents
- Fines and/or penalties
2. Indirect (soft) costs, which go beyond those recorded on paper, such as:
- Accident investigation
- Repairing damaged property
- Administrative expenses
- Worker stress in the aftermath of an accident resulting in lost productivity, low employee morale and increased absenteeism
- Training and compensating replacement workers
- Poor reputation, which translates to difficulty attracting skilled workers and lost business share
When calculating soft costs, minor accidents costs are about four times greater than direct costs, and serious accidents are about 10 to 15 times greater, especially if the accident generates OSHA fines or litigation costs. According to IRMI, just the act of measuring costs will drive improvement. In theory, those providing the data become more aware of the costs and begin managing them. This supports the common business belief that what gets measured gets managed. And, as costs go down, what gets rewarded gets repeated.
The Value Of Safety
OSHA studies indicate that for every $1 invested in effective safety programs, you can save $4 to $6 as illnesses, injuries and fatalities decline. With a good safety program in place, your costs will naturally decrease. It is important to determine what costs to measure to establish benchmarks, which can then be used to demonstrate the value of safety over time.
Also, keep in mind that your total cost of safety is just one part of managing your total cost of risk. When safety is managed and monitored, it can also help drive down your total cost of risk. For example, a fall protection program implementation reduced one agribusiness' accident costs by 96 percent - from $4.25 to $0.18 per person/hour.
Considering the statistics, safety experts believe that there is direct correlation between safety and a company's profit. We are committed to helping you establish a strong safety, health and environmental program that protects both your workers and your bottom line. Contact us today at (717)625-3770 to learn more about our valuable services that positively affect your bottom line.
Your Pennsylvania Agriculture Insurance Experts
At Robertson Insurance & Risk Management, we are committed to helping you establish a strong safety program that minimizes workers' compensation exposures. Contact us today at (717)625-3770 to learn more about our OSHA compliance and safety program resources.