A comprehensive and effective safety program can be the difference between a long lived and prosperous company and one that goes out of business. A focus on safety does not only make sense from an ethical standpoint, but it may even keep owners and managers out of jail. Title 29 U.S.C. § 666(e) provides criminal penalties for any employer who willfully violates a safety standard prescribed pursuant to the Occupational Safety and Health Act, where that violation causes the death of any employee. Four elements must be proved in order to establish a criminal violation. The government must prove that: (1) the defendant is an employer engaged in a business affecting commerce; (2) the employer violated a “standard, rule or order” promulgated pursuant to 29 U.S.C. § 665, or any regulation prescribed under the Act; (3) the violation was willful, and (4) the violation caused the death of an employee.
In addition to keeping employees safe and avoiding fines, penalties and even jail time, an investment in safety can result in incredible returns for a business. Below are just a few examples of what a robust safety program can provide:
- Insurance underwriters love safety programs! Management’s commitment to safety will often lead underwriters to provide credits to an account in return for writing the business, lowering premiums. If an underwriter believes safety is a priority, they hope to enjoy the benefits of reduced claims and associated costs and will price an account accordingly.
- Injuries drain money from increased insurance costs over time, retained risk including deductible payments, down operation time, the need for replacement staff and overtime, equipment, benefits, and training. A safe workplace improves the operating efficiency of a company.
- A true safety culture can increase morale of employees, decreasing the likelihood of employment litigation and workers’ compensation fraud.
- Low accident rates can lead to employees feeling safe, reducing employee turnover.
An unsafe workplace affects everyone in an organization. Employers, regardless of size or industry type, have a duty to provide for the safety of employees. By doing the right thing and investing in safety, owners will avoid possible prosecution and will also benefit financially.
Risk Manager’s Takeaway:
A comprehensive safety program requires some effort on the part of the employer but the return on investment is often substantial. Focusing on safety really is a “no brainer” for business owners.
