The Hidden Danger of Small Claims in Workplace Safety
At Troy Insurance, experts warn that small claims are the sleeper threat to businesses. According to Derek Bruce, co-owner, and Chris Raykovich, advisor, it’s the minor incidents that often go unnoticed until they snowball into major losses. OSHA investigations frequently uncover overlooked safety issues that lead to fines, shutdowns, and increased workers’ compensation premiums.
In Idaho, while claim frequency has decreased and rates have followed suit, experts caution that this trend is fragile. Historical claims continue to impact premiums years later, emphasizing the need for proactive safety programs. Bruce and Raykovich stress the importance of ‘near miss’ reporting and using lagging indicator data to guide early interventions. Their approach combines education, technology, and practical planning to prevent injuries and premium hikes.
“Frequency breeds severity,” Bruce noted. “Businesses with frequent small claims are more likely to face a major one.” Raykovich encourages clients to leverage ‘near miss’ data to prevent actual claims. “By focusing on near misses and implementing controls, businesses can mitigate severity,” he said.
Education plays a crucial role in transforming workplace safety culture. Outdated attitudes often discourage early reporting. Troy Insurance fosters a user-friendly reporting culture by educating clients on managing workers’ compensation costs. “We teach clients how to control workers’ compensation costs, giving them a sense of control,” Raykovich explained.
Troy Insurance provides practical tools, including return-to-work plans and digital platforms for tracking safety training and incidents. “We offer clients tools to track training and certifications, helping them maintain a proactive safety culture,” Bruce said.
The long-term impact of lagging indicators is significant. Claims from years ago can continue to affect a business’s experience modification rate (eMod), influencing premiums. “Something that happened three years ago is still affecting businesses today,” Raykovich said.
As the market shifts and underwriters scrutinize client controls more closely, proactive safety programs are becoming essential. “Schedule rating is a tool underwriters use to incentivize employers to implement safety controls,” Raykovich noted. The challenge lies in convincing businesses to act before incidents occur.
“Oftentimes, employers with no recent incidents are reluctant to discuss safety programs,” David Troy, owner of Troy Insurance Agency, said. “Our challenge is getting their attention.” In a competitive workers’ compensation market, proactive safety measures are no longer optional but table stakes for businesses aiming to control costs and maintain operational continuity.
