In March 2022, Len Sommers, from Lawley’s Safety & Risk Management Team, presented on the Financial Impact of Safety for Construction Companies. Below is an overview of that presentation. If you or your organization are seeking more information on this topic or to hear the entire presentation, please contact Len Sommers at lsommers@lawleyinsurance.com

 

 

Safety has steadily increased in importance to the construction industry and today it is a critical element for the success of any construction company.

Construction as a whole brings significant risk that requires specific programs to control the hazards and reduce exposure.

These are some of the basic elements of creating a successful safety program, below.

 

 

Labor is one of the largest cost impacts in construction. workers’ compensation costs are a direct expense that does not contribute to your company’s productive output.  Keeping these as low as possible increases your financial competitiveness.

Worker injuries directly impact your Experience Modification Rating that is used in calculating your company’s workers’ compensation rates. See below.

 

 

OSHA citations for safety violations continue to increase and may also impact your financial health.

The impact of accidents can extend well beyond workers’ compensation costs and have ripple effects.

Multiple financial studies have concluded that it is less expensive for companies to prevent losses than ignore the potential risk.

Two fundamental elements found in successful safety programs, below.