GDP Blog

Company fined $300,000 for warehouse violations

Posted by John Powter

Sep 9, 2014 10:32:00 AM


INTRODUCTION:

Last week we wrote about warehouse safety and gave you five ways to reduce your Workers Compensation costs in a warehouse. Yesterday, a company was fined over $300,000 because of failure to report safety violations.  warehouse-810525-edited Even if you don't have a large warehouse facility, it brings up a point.  How can you reduce your workers compensation claims to drive your premium lower and be in compliance with OSHA and your insurance carriers?  Simple answer is to have a plan - keep reading to find out how.

A new customer recently engaged our firm.  When I contacted them to thank them and introduce myself as one of the partners, I asked him what one thing we did well during the sales process.  He said "John we hired you because you gave us a strategic plan that reduced not just the insurance premiums, but our overall costs."  He got it.

 


To drive a reduction in anything you must look at it with this formula:

Units + Cost + Overhead = Price

How can you reduce the number of incidents (units)?
If we do have an incident, are we making sure the price for services we are paying is the lowest (cost)?
Are you able to offer incentives to your employees for days without an accident? Wait we are trying to reduce costs!  John, if I pay them that's going to increase costs!  Right and wrong - if you have an accident consider all the costs involved:
  • Medical Bills

  • Deductibles

  • Lost productivity because the worker is out

  • Training costs of a new employee

  • Increased premiums for the next 4 years

  • What did not get done because the manager was covering that employee 

Would you spend $100 to avoid $10,000?  Of course!  However, in many conversations those that lack an incentive and safety plan are the people that won't spend a $100 now and end up paying $10,000 or more for the next 4 years.   Reactive vs. proactive or unlucky vs. lucky, here is one of the many things we offer our clients:


The Ten Warehouse Safety Programs 

1.  Handling and Storing Chemicals

2.  Lifting with Back Belts 

3.  Working with Ammonia 

4.  Be aware of Amputation Hazards

5.  Loading Dock Safety

6.  Avoiding Slip and Falls

7.  Three- Point Contact at All Times

8.  How to Handle Toxic Chemicals

9.  Using Ladders Safely 

10  Keep Your Hands Safe


We are helping drive the number of units down with setting a strategic plan for preventing incidents.  We also offer consumerism by helping our clients pay the least amount for medical services.  


If you need help with any of these items above, contact GDP Advisors to see how we can reduce your overall costs - including the insurance premiums.

 

 

Topics: Employee Benefits

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