It’s no secret that injuries on the job site are a costly mistake. Nonetheless, the Bureau of Labor Statics recorded more than 1.1 million non-fatal construction-related injuries and illnesses in 2012. It’s a powerful incentive to go the extra mile to keep injuries to a minimum and with them, their impact on your bottom line.
Soon we’ll talk in greater detail about the many costs associated with poor safety performance. But first, here are some terms that every GC or sub, or any firm working in construction needs to understand.
Experience Modification Rate (EMR) is a computation determined by the National Council on Compensation Insurance (NCCI) that compares a company’s annual losses in worker compensation insurance claims against its policy premiums over a three-year period, excluding the most current year. It is a lagging indicator of performance.
Total Recordable Incident Rate (TRIR) is an OSHA defined calculation which uses a normalizing factor to support comparison of Injury and Illness performance for businesses in similar industries. It is calculated by taking the total number of OSHA recordable cases occurring in a business and multiplying that number by 200,000 (average number of hours worked for a 100 employee company) and dividing by the total number of employee hours worked for your operation. This is a leading indicator of performance.
OSHA Violation Types
- Other Than Serious Violation – A violation that has a direct relationship to job safety and health, but probably would not cause death or serious physical harm. A proposed penalty of up to $7,000 for each violation is discretionary.
- Serious Violation – A violation where there is substantial probability that death or serious physical harm could result and that the employer knew, or should have known, of the hazard. A mandatory penalty of up to $7,000 for each violation is proposed.
- Willful Violation – A violation that the employer knowingly commits or commits with indifference to the law. The employer either knows that what he or she is doing constitutes a violation, or is aware that a hazardous condition existed and made no reasonable effort to eliminate it.
Certificate of Insurance (COI) – COI validates your company has the proper insurance coverage to protect your workers and your customers.
Now that we’ve established how safety performance is measured, next week we’ll talk about its impact on your bottom line.
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