General Inquiries

Safety Companies

  • 1.  Safety Companies

    Posted 27 days ago
    ​Hello,

    We recently received an outrageous bill from a construction safety company that we use. This company provides safety personnel, safety training, and certifications for our employees. While safety is our number 1 priority, I would like to understand whether or not we are being charged competitive pricing.

    Does anyone have any recommendations of safety companies that they use for these types of services in the Houston area, and of course companies you are happy with?

    Thanks in advance!

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    Allison Bissonette
    Assistant Controller
    Steel Masters LP
    Houston TX
    (713) 464-8652
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  • 2.  RE: Safety Companies

    Posted 18 days ago
    ​Allison,

    The cost of your safety consultant should be included in the calculation of your total cost of risk. The total cost of risk equals the sum of; insurance premiums, retained losses (passive and active), risk management departmental costs (internal), consulting fees (external), and indirect costs of loss (at least a ratio of 1:1). Her is an example; your safety program includes the cost of safety consultants whose efforts result in a reduction of workers compensation claims which result in lower premiums and lower indirect costs of loss. The end result is a lower total cost of risk. So while the cost of the consultant alone was an increase over the last years budget the result is a lower TCOR and an increase of profit to the bottom line.

    It is difficult to assess your situation without more knowledge of your overall program. That having been said you should consider whether the use of technology can lower your costs. An example is the automation of your employee education using a learning management system, and a cloud based system for OSHA record keeping.

    Jon Erickson, CRM, CIC, MLIS, CWCA

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    Jon Erickson CRM, CIC, CWCA, MLIS, CIRS
    Producer
    Insure Forward
    Fargo ND
    (701) 893-2750
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