Did you know that you can earn a significant ROI when your business invests in safety?
No matter what type of business you have, you can invest in safety and reap major benefits down the line. While you can never prevent everything, you can make smart investments into safety that will pay dividends in the future.
Every company would rather buy assets than pay money in insurance premiums. This article will give you three simple steps that ensure your money is being invested where it will reap the greatest rewards.
Safety ROI Equation
- X =Annual Safety Budget
- Y =Workers Comp Premium Savings
5X=Y or 5 times return on Safety Investment
Example: A company invests $5,000 in a Safety Budget. 3 Years later their workers comp premium decreases by $25,000 because of their improved safety record.
Many of our clients have experienced these results simply by implementing these 3 Simple Steps:
3 Simple Steps
- Set an annual safety budget. Your Beehive/Certified Insurance agent has a tool that will help you set up an intentional safety budget in less than an hour. Think about the funds in your safety budget as an investment in your future success.
- Buy the right safety equipment and tools for you. What you invest in will vary depending on your business. One company may invest in personal protective equipment, like hard hats and reflective vests, while another may invest in first aid classes. Your insurance agent can serve as a consultant for you on where to spend your budget wisely.
- Consistent safety communication. Creating a culture of safety starts with consistent communication with your employees to be careful and stay safe on the job. Holding a consistent safety meeting like a Toolbox Talk can be highly effective. One 5-10 minute meeting per week has proven to reap the greatest rewards.
These steps may seem over-simplified but the best actions are the ones where small changes have big impact. These 3 steps have proven themselves time and again to produce the best results.
Remember, It’s challenging to quantify safety by yourself. You never know what you prevented, because you prevented it. Beehive/Certified Insurance has the tools and experience to easily show how much money you are losing because of your safety history. We can analyze your score over multiple years to show how much money you saved by establishing a safety budget, making investments in the safety of your employees and creating good safety habits.
One of our clients recently decreased their workers comp premium from $178,265 in 2019 to $69,906 in 2020 after implementing these 3 simple steps about two years ago. That is an annual savings of $108,359.
These three steps are simple, and anyone can do it. Contact a Beehive/Certified Insurance agent today to get started on your safety budget and investment plan so you can gain the rewards.