“We have the right, but are not obligated to inspect your workplace at any time. Our inspections are not safety inspections. They relate only to the insurability of the workplace and the premiums to be charged. We may give you reports on the conditions we find. We may also recommend changes. While they may help reduce losses, we do not undertake to perform the duty of any person to provide for the health or safety of your employees or the public. We do not warrant that your workplaces are safe or healthful or that they comply with laws, regulations, codes or standards. Insurance rate organizations have the same rights we have under this provision.”

In simple terms:

• Your insurance company is NOT obligated to make a safety inspection at all;
• The insurance company inspections are NOT safety inspections. In fact they are only used to determine the insurability of the workplace and the premiums charged for the exposures found;
• Your insurance company is NOT obligated to give the insured a copy of their report on the conditions found;\
• Your insurance company is NOT obligated to share recommendations with you;
• Your insurance company is NOT performing a duty or service to provide for the safety and health of your employees;
• Your insurance company does NOT warrant that you are in compliance with OSHA.

Your Insurance Carrier Does Provide Valuable Services, But You Must Take Control

In addition to assuming the risk of workers compensation and adjusting worker injury claims, depending on the insurance carrier valuable services may be provided. For example, many carriers will provide at no cost on-site noise assessments and safety training resources. But most are not equipped to provide their services on a proactive basis. You must call them to request the service. Also, they will pay only for the insured portion of the injury. Their insurance policy will not reimburse you for the many “hidden costs” that hit your bottom line hard.

Recognizing that the total cost of worker injuries is YOUR cost, you must take total control over your safety and claim management program to minimize these costs (learn more).

The Flaw In Solely Relying On Your Insurance Carrier For Safety Services

Your Challenge

While your safety director has overall responsibility for your organization’s injury prevention program,  usually he or she simply cannot do the job alone. The job of designing, communicating and enforcing your company’s safety and health policy, identifying and correcting unsafe hazards and conditions in the workplace, training employees, instilling safety awareness, and responding to accidents in a prompt manner—and do all this in accordance with state and federal laws – is an increasingly complex task. Unfortunately many organizations make the mistake of relying heavily on  loss prevention services provided by their insurance company.

Did You Know...

Your workers compensation policy makes it clear that the primary focus of your insurance company’s inspection is to determine insurability and premiums to be charged. Section A of “Conditions” reads as follows: