All organizations have a desire to minimize the costs of both retained and insured risk. This paper presents an innovative approach that integrates a worker's compensation cost allocation system with a safety improvement process that focuses on location management structure, key loss drivers, and targeted prevention activities.
A cost of risk allocation (CORA) and safety improvement program (SIP) were developed and implemented at ABC Company four years ago and have been very successful in elevating the organizational conversation on safety and worker's compensation costs, both human and financial. This dual approach has resulted in increased awareness of operation risk control, reduced worker's compensation costs and improved employee safety and health programs.
This paper will describe the basic fundamentals of the cost of risk allocation process and the pilot safety improvement process and results at a selected high loss location.