Workplace Safety Incentives Since 1991
Safety Pays customers generally average at least a 50% reduction in losses during just the first year of program use. As applied to your company, let's consider the following hypothetical figures so that you can see what your return on investment would be using Safety Pays:
Based on the scenario provided above, if through the implementation of Safety Pays, you are able to cut your dollar losses in half, lowering your loss ratio (percentage of premium which has been paid out in loss) then you've reduced your actual dollar costs by $25,000.
How does these reduced dollar losses apply to your company? For decades, insurance industry has established a ratio of 3-1 as the amount of premium which will need to be charged (over a period of 2-3 years) in order to avoid negative underwriting exposure. Therefore, as translated to long-term premium dollar savings, reducing a company's loss ratio by $1 will in turn, translate to $3 in long-term premium savings.
So, if Safety Pays successfully cuts your annual claims dollar losses by $25,000, the net long-term savings to you is $75,000 in reduced premium. That's a $75,000 return on an initial program investment of less than $1000 (based on the purchase price of Safety Pays -- even including the full Spanish Translation Upgrade! But let's assume you also include as much as $5,000 in incentive dollar reward costs, your Company is still getting the benefit of a 15 to 1 return on investment.
But let's be even more conservative. Instead of a 3 to 1 rate of savings (claims loss dollars vs. long term premium savings), let's apply a rate of only 1 to 1. Thus for $25,000 in reduced losses, your company sees premium dollars reduced by $25,000. That's still a 500% return on your investment; a 5 to 1 ROI! Try to beat that in today's economy.
Utilizing the Safety Pays program and its integrated system of employee motivation, virtually any company can achieve at least a projected 50% drop in its workers' comp exposure for an initial cost which is a mere fraction of the company's annual workers' compensation premium.
The results will provide not only a dramatic increase in employee morale, productivity and management/ workforce communication, but will impact the company's bottom line by tens of thousands of dollars a year based on workers' comp premium reduction alone.