FOCUS ON WORKPLACE SAFETY

Over the past five years, Utah businesses have experienced record-low
workers' compensation insurance premiums. But 2002 will take a different turn.

While Utah's rates remain lower than most in the country, Utah companies
will pay an average of 20 to 25 percent more for coverage.

Even with the premium increase, however, most Utah businesses will be
paying what could be considered "discount" premiums - less than what many
paid in 1996. And while some factors contributing to the premium increase
are out of anyone's control, including the events of Sept. 11, Utah
companies themselves play a large part in controlling the cost of their
premiums.

Research indicates that because of past record-low premiums and the recent
past's booming economy, many businesses lost their commitment to workplace
safety, resulting in a rise in both the frequency and severity of accidents.

Last year, workers compensation insurance companies in Utah recorded a
dramatic increase in the severity of on-the-job injuries. And this increase
is the primary reason why workers compensation insurance premiums will
increase this year.

But there is some good news. Companies with a strong commitment to safety
and a good safety record will still pay more, but those that have lost
their focus on workplace safety will see dramatic increases.

Companies striving to keep their workers compensation insurance premiums at
a minimum must focus on two key areas: reducing the number of accidents and
managing costs for those accidents that do happen, including aggressive
return-to-work programs.

As the largest underwriter of workers compensation insurance in Utah,
Workers Compensation Fund (WCF) wants to help Utah companies recommit to
making workplace safety a priority. Many businesses have made great efforts
to emphasize safety over the years, but now is the time to update and
re-emphasize established programs.

Here are a few things businesses can do now to recommit to workplace safety:

1. Develop and enforce a safety program specific to your company. Every
company - whether in a hazardous industry or not - should have a workplace
safety program in place. According to the National Safety Council, the
average cost of one lost-time accident ranges from $12,000 to $16,000.
Every employee, even seasoned and skilled workers, should review the
correct procedures to ensure a safe workplace for all. For small-business
owners, a serious accident could cripple - if not devastate - their company.

2. Test employees for substance abuse. Nationally, drug and alcohol abuse
costs businesses $100 billion annually in medical expenses, lost time and
productivity, stolen property, insurance premiums and employee assistance
programs. Employers should have a zero-tolerance drug and alcohol policy in
effect and test their employees randomly, especially if their business
involves any sort of dangerous work.

3. Be precise and efficient when reporting and managing claims. Accidents
should not be taken lightly. Injured employees and their supervisors should
fill out the required reports as soon as possible after the accident to
help determine the cause.

By quickly reporting the injury to their insurance company via phone,
Internet or mail, businesses take a proactive approach in managing claims.
And in turn, the company can help the injured worker begin the recovery
process, both physically and financially.

4. Institute programs allowing recovering workers to return to light- duty
assignments. Employees and businesses benefit when an employee returns
earlier than expected if they can be accommodated within the doctor's
recommended capabilities.

If we are to properly protect our work force and keep overall workers
compensation premiums at reasonable levels for Utah employers, everyone
must make workplace safety a priority.