You are the safety manager for a company that produces widgets in the state of Kentucky. Your business has a solid reputation and is growing and looking to expand to Texas and Georgia in the next few years. The Senior Leadership Team (SLT) wants a better understanding of what insurance coverage they need to have for workers’ compensation moving forward in these three states.
You have partnered with the workers’ compensation manager, and you want to give the SLT a feel for how much money they have spent the past few years and what they should consider for future workers’ compensation insurance coverage. Using information you have learned thus far in the course, make a proposal to the SLT on items they should consider, based on fairly hard facts. Do this by using the OSHA “Safety Pays” Program found here: https://www.osha.gov/dcsp/smallbusiness/safetypays/index.html
Last year, your company had 12 sprains, four cases of carpal tunnel syndrome, one crushing incident, and the loss of vision for three employees. Your company also has a 6.7% profit margin. Your company pays the first $100,000 aggregate for each category of injuries, and then the insurance company pays the rest.
Use the data displayed above, create slides that discuss the following:
- Discuss how many compensable injuries happened last year. Explain how many incidents and how much and what could happen if the workforce doubled.
- Estimate the total direct costs, indirect costs, and the amount of sales of widgets that are needed to cover the total cost of all the company accidents.
- Provide guidance on which states should be considered 3A states and 3C states in the workers’ compensation insurance policy.
- Identify if these projected three states would practice extraterritorial and reciprocity with the main state, and explain to the SLT the impact of these statutory guidelines.
- Determine if the employer would need any other extra insurance (insurance that would cover a workplace accident not covered by workers’ compensation) or if they should they just pay out of pocket.
Your PowerPoint presentation must be a minimum of eight slides, not counting the title slide or references slides. You must use a minimum of two resources (including the OSHA Safety Pays website) for your presentation. You should include a combination of text and diagrams and pictures if they add value. All in-text citations and references should be displayed in appropriate APA style.