Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Ohioans are Working Safer, BWC Says"
COLUMBUS, Ohio -- Workplace injuries have been reduced by 30% since fiscal year 1997, according to the results of a recent study conducted by the Ohio Bureau of Workers' Compensation. In fiscal year 2004, there were 184,810 Ohioans injured at work. That number compares favorably to eight years earlier, when more than 263,179 employees were hurt in on-the-job accidents."Working safely and preventing accidents helps to advance Ohio's business climate by keeping productivity high and greatly reducing workers' compensation expenses," said Gov. Bob Taft. "But more importantly, it shows we're making progress in our efforts to care for the lives of Ohio workers."James Conrad, BWC administrator and chief executive officer, attributes the decrease to a combination of BWC safety programs and a greater awareness effort on the part of Ohio employers to prevent injuries. Overall, more than 200,000 businesses across the state had no claims filed during the fiscal year 2004, which runs from July 1, 2003, through June 30, 2004, he said."Preventing injuries is important to businesses that want to reduce workers' comp expenses," Conrad said. "Fewer injuries not only lead to lower premiums, but also marginalize other costs such as overtime and training that can't necessarily be measured but certainly hurt a company's bottom line."The study also examined allowed claim trends over an eight-year period in Ohio to determine which counties had the fewest claims among all of its businesses. Franklin County had the lowest claim rate at 1.4 per $1 million of employer payroll, followed by Delaware County at 1.5. Athens and Hamilton Counties were next 1.6, while Greene and Defiance came in at 1.7.Statewide, the average was two per $1 million of payroll.Overall, 75 of 88 counties saw the number of injuries decline between fiscal year 1997 and 2004. Lawrence County experienced the most significant improvement with a 49% decrease. Monroe (47 %), Clinton (41%), Hardin (41%) and Putnam (39%) followed, the report found.Businesses incur a variety of expenses that result from workers' compensation claims. In addition to direct costs, such as increased premiums, companies face indirect costs which are nearly four times as expensive. Some of these costs include hiring and training replacements, paying overtime, experiencing decreased productivity or losing business altogether, Conrad noted.With today's average claim costs around $30,000, it becomes more difficult to recoup lost revenue, he added. For example, a business with a profit margin of 5% would need sales of $600,000 to cover the direct costs of an injury and sales of $2.4 million dollars to cover the indirect costs of an injury, he said.Visit the Ohio Bureau of Workers' Compensation: www.ohiobwc.com"