By Travis Halsted, Loss Control Consultant

While visiting any of our valued policyholders, I am witness to some incredible machinery that complete even more amazing processes. While so much attention is paid to the machinery and the guarding that is required, there are tools that are often overlooked. Within each work area there is often a work bench that is filled with screwdrivers, clamps, pliers, files, and wrenches. In other facilities, a maintenance area may hold axes, hammers, mauls, circular saws, powder actuated tools and pneumatic grinders. With each of these tools there are rules regarding maintenance and testing.

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By Ruth Kiefer, Loss Control Manager, MSc, ARM

Last year was a record year in the State of Michigan for high fall injuries and fatalities related to those falls. Our policyholders were fortunate enough not to sustain any of the noted fatalities, but we did however, have some severe high fall injuries along with other worker injuries related to slip, trip, and fall hazards. In a collaborative effort to combat these types of injuries, the federal government and our state MIOSHA are making efforts to reduce the amount of injuries and fatalities related to high falls along with addressing slip, trip and fall injuries from poorly maintained production floors.

To accomplish this push in safety MIOSHA will be adopting major changes to their walking-working surfaces and fall protection general industry standards. The new ruling, will also be referred to as Subpart D, and will follow the federal OHSA’s updates to this standard.

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By Donna Motley, Vice President of Claims

I think, as an insurance company, we are automatically given a bad reputation. Most people, at one time or another over the course of years, have had an experience with their insurance carrier, either vehicle or home owners. I am no exception. I would agree with most people that when dealing with a home or auto insurance carrier, there is a huge emphasis placed on damages that equates with “money”. While it is the carrier’s responsibility to make the insured whole, the dollar and cents are watched closely. And I do realize there is a lot of fraud in auto and home owners insurance make this scrutiny necessary.

In Workers’ Compensation, our responsibility is to make the “injured worker” whole. With all the possible variables surrounding a work related injury, how do you place a dollar value on that? There is a book sometimes utilized in the Workers’ Compensation industry entitled “Official Disability Guidelines” – or the ODG. Easily accessible on the Internet, the ODG categorizes by injury and provides the average number of days away from work for that injury, the estimated Indemnity and Medical costs associated with that injury, billing procedure codes, best practices for a return to work (with or without surgery) and suggested restrictions for returning to work based on job duties of the injured worker. In a perfect world, right?

While interesting reading, we at MTMIC do not utilize the ODG. Similarly, medical (treatment) decisions are not based on the “cost” of a procedure. Yes, when a claim is established in our system we have to establish a dollar figure that should cover full treatment until the injured worker is recovered and returned to work. This “reserve” is medical based description of the injury, extent of the injury, taking in to consideration the age of the injured worker, possible co-morbidities and physical skills required to return to work. It is not the decision of the Claims Department for an employee to have a CT Scan vs. MRI – that is the decision of the treating physician. We can make suggestions and ask questions, ask for an explanation and decide to dispute the requested test, but the dispute is based on medical evidence and not dollars spent or to be spent. We do make sure testing or physical therapy is not being performed because “they can”. Before authorization is extended, there has to be a medical basis and is warranted.

I can’t tell you how many times injured workers have accused us of making a decision “just to save money”. Or that we only allow injured workers to treat with a “Workers’ Compensation” doctor. It is true that we will not allow treatment with certain doctors, our decisions are not based on money, they are based on medical outcomes. We handle a lot of claims in our office and are able to witness physicians’ results. We want the best doctor for the injury. No one benefits, physically or monetarily, if the treating physician is not skilled in their practice – not the employee, employer or insurance carrier.

Adjusters are human too! Among our Claims Department staff and family members, we have experienced broken bones, trigger finger, tendinitis and carpal tunnel syndrome. And who did we seek to treat – the same physicians that we utilize for our claimants. If we are personally satisfied with the physician’s results, why wouldn’t an injured worker be satisfied? We tend to utilize physicians that are no nonsense so maybe the injured worker just doesn’t like what the doctor has to say. We are not cold or heartless, our goal is to have the injured worker recover, while at the same time keeping an eye out for fraud!

Harvey and Irma

Harvey and Irma continue to be front page news. Headlines in the paper “Insurance Premiums could Climb beyond Disaster Areas” and “Companies Look to Recoup Billions Paid in Hurricane Harvey and Irma”. This may be a good time for an insurance executive class 101. Reinsurance is insurance bought by insurance companies. A primary purpose of reinsurance is to cover catastrophic events not anticipated in day-to-day insurance operations. At MTM, we know that bad things can happen in our shops. A serious employee injury is something we deal with on a daily basis. But what if there was a shop explosion that seriously injured 10 or 20 employees or a vehicle accident with 5 employees affected. This could dramatically change our loss ratio for the year and the surplus cushion of the company for years to come. So, like most other insurance companies, MTM buys reinsurance.

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All too often we read of crane and rigging accidents that cause death and extensive damage. Crane operators following basic safe hoisting can prevent most crane and rigging accidents. The most important step in any rigging operation is determining the weight of the load to be hoisted. This information can be obtained from shipping papers, design plans, catalogue data, manufacturer’s specifications, and other dependable sources. When such information is not available, it is necessary to calculate the load weight. There are a number of steel weight calculator available online that will help you determine the weight of your load.

Operators must also know the rated capacity of the crane. This is the maximum amount of weight a crane can safely lift. The rated capacity should be marked directly on the beam of the crane. Even though the equipment is suitable for the weight of the load, operators need to consider the following:

• Will the angle of the rigging devise take away any of the cranes capacity?
• Operator rigged the load to the center of gravity of the crane and lift line?
• Are there any sharp surfaces or corners in the rigging that could cause a rigging devise such as a sling to tear? Should padding be used to protect the sling?
• Will the load be under control along the entire path of the lift?
• Should a tag line be used to guide the load?
• Are there any obstructions along the lift path that must be cleared? Can they be moved out of the way?
• Will the suspended load be clear of all personnel?

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By Donna Motley, Vice President of Claims

As your Workers’ Compensation carrier, we provide a service. Hopefully, part of that service is to make your job a little easier. In today’s world, everyone is busy. We can help take some tasks off your shoulders. After a work related injury, we can contact the doctor’s office or medical facility and provide the insurance and/or claim information. Any authorization to treat, refer for testing or to another physician, should be provided by our department pursuant to the Workers’ Compensation Act and Michigan Health Care Services Rules. We can contact the injured worker and relay necessary information; and answer the employee’s questions as to “how does this (the compensation process) work”?

In order for us to help “you”, we need you to help “us”. The first and best way to aid in the Workers’ Compensation process is to promptly report the injury to us. The second best way, is to make sure we have complete and detailed information. While I realize sometimes the Employer’s Basic Report of Injury (Form 100) has to be completed in haste, the more information provided, the least likely we are to call or e-mail you with questions or requests for additional information. Please realize, when detailing “how” an injury occurred, what may make perfect sense to you may raise additional questions in our minds. We are not necessarily familiar with your facility, the employee’s work duties, work process, the machines on site or how they operate.

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By Travis Halsted, Loss Control Consultant

Whether it be a foundry, fabrication facility, snack food warehouse, welding facility or one of the many other industries that MTMIC works with, compressed gas cylinders can be found in the majority of them. Compressed gas cylinders serve a plethora of purposes, but also provide just as many hazards. From oxygen displacement and toxic effects of some gases, to physical hazards such as a ruptured cylinder and explosions, any failure of a cylinder can be catastrophic. It is paramount to understand the pressure that these cylinders are under. If a cylinder has a sudden release of any of the gases, it can become a dangerous missile-like projectile. There have been documented cases of compressed gas cylinders, under the sudden release condition, to have breached a cinder block wall. In other events, vehicles have been destroyed by explosions when the cylinder wasn’t properly secured during transport or if the valve was inadvertently opened. An essential part of working with gas cylinders is to ensure that you have a clear understanding of what gas or gases you are working with. Gases include, but are not limited to; flammable gases, oxygen and oxidizing gases, acid and alkaline gases, toxic gases, cryogenic gases and inert gases. Each of these gases have their own benefits and hazards.

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By Chris Demeter, Senior Loss Control Consultant

The term “robot” readily evokes a mental image to most people. Depending on your age, it could be R2D2 from the Star Wars movies, the Mars Land Rover, or you may have iRobot Roomba vacuum cleaner. In 1954, George Devol developed the first programmable Robot. It weighed two tons and was controlled by a program on a magnetic drum. Nowadays, the number and type of robots are changing rapidly.

Industrial robots are designed to move materials, as well as perform a variety of programmed tasks in manufacturing and production settings. They are often used to perform duties that are dangerous or unsuitable for human workers, such as repetitious work that causes boredom and could lead to injuries because of the inattentiveness of the worker.

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By Travis Halsted, Loss Control Consultant

As companies attempt to reduce costs, one particular item that I have been seeing a great deal of is companies having their own drivers. These drivers provide companies with the ability to pick up and deliver their product, get product from one location to the next, or to send products to secondary operations. While convenient, it is vital to point out that the simple roadway hazards that most commuting drivers only face for a short period of time in a day, are constant hazards that professional drivers face all day.

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Donna Motley, Vice President of Claims 

Owning and operating a business is multi-faceted. Having Workers’ Compensation insurance, required by law, is one of those many facets. Hopefully, most employers rarely have to utilize their Workers’ Compensation insurance. BUT, should an employee be injured in the course of employment, you, as the employer need to be prepared.

So how far does the employer’s responsibility reach? The employer is responsible for providing a safe working environment, for training employees in the proper way to perform their job, for proper machine and facility maintenance and for properly handling a work related injury, should one occur. An employee injury is costly in many ways. An injured employee is affected professionally and socially. The employer’s production and work product is affected. A work injury has a financial impact on everyone involved. The employer has a vested interest in making the employee be the best he/she can be, as the employer will reap the rewards.

Don’t ignore the signs. If a Supervisor walks past a work station and notices an employee stretching their back, rubbing their shoulder or playing “windmill” with their arms, that should be the employers first clue that something may not be right. Ignoring “signs” rarely benefits the employer. It is doubtful the situation will resolve itself or just “go away”. On the contrary, what usually happens is the employee will start treating with their primary care physician for the medical condition. Then when it starts to cost the employee a lot of money, or the condition does not resolve, or someone tells them they should file a Workers’ Compensation claim, the employee will bring the situation to the attention of the employer. By this time, treatment has been rendered and we would have to obtain all those medical records; suspicion overshadows the entire claim because it is being reported so late and after the employee has received treatment; and we will not allow treatment until the matter has been investigated. This delay in treatment will in turn delay the employee’s recovery and impact work product and production.

While we are not suggesting that a Supervisor “suggest” to an employee that the employee has a work injury, a simple “Is everything o.k.? I noticed you rubbing your shoulder” can go a long way. At that point the employee may admit that he has an injury that occurred outside of work (make note in the personnel file if that is the case); the employee may alert the employer to a machine set up or situation that could maybe be changed to be more ergonomic; and the employee may come away feeling their employer “cares”.

If the employee advises that something he did at work has caused an injury, the employee should be immediately sent to the clinic. Remember, it is not up to the employee to decide whether or not they “want” to go to the clinic if they have reported a work injury. Whether the employee alleges nothing is wrong, an injury occurred outside of work (i.e. they just slept wrong) or there was a work incident, the Supervisor should follow up with the employee later that day, the next day and the next week, and ask if everything is o.k. or if they are having any other issues. Again, ignoring these situations do not make them go away – instead, they tend to “fester”.

As an employer, you should review all employee injuries, your injury logs and/or loss runs to determine how many and what kind of injuries are occurring and where they occur. Then review to see if there are any changes that could be made so injuries do not continue. Your Loss Control Consultant can be a tremendous help in this regard. Remember, we are a team, all working toward the same goal – a safe and productive work environment! We all benefit!

By Chris Demeter, Senior Loss Control Consultant

Have you ever experienced an eye injury at work or maybe at home while using that new weed whacker? The National Institute for Occupational Safety and Health (NIOSH) reports that every day about 2,000 U.S. workers sustain job-related eye injuries that require medical treatment. Using the right eye protection can lessen the severity or even prevent many of these eye injuries.

Chemicals or foreign objects in the eye and cuts or scrapes on the cornea are common eye injuries that occur at work and even at home. Other common eye injuries come from splashes with grease and oil, burns from steam, ultraviolet or infrared radiation exposure, and flying wood or metal chips.

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By Travis Halsted, Loss Control Consultant

A vast majority of facilities that I visit each year have a welding operation present. Whether it be a large welding area with a plethora of welding cells or a smaller one table welding work station, there are a great deal of potential hazards present whenever welding operations are being completed. This is evident by the $119,803 MTMIC has spent on claims since 2009 that were traced back to welding operations. Of the 82 injuries reported, the injuries range from burns, strains, foreign bodies, inflammation, lacerations, and punctures. As there are a great deal of factors that go into these injuries, one particular item can often be found to be a root cause. In many cases, the lack of proper personal protective equipment was found to play a large role.

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How Does Your Loss Experience Compare?

I am often asked this question by our shop owners, plant manager, or CFO. Some of the shop owners/managers have an inkling of whether they’re better than average, average, or have loss challenges. However, their specific knowledge of other shops is usually vague at best.

I often start my response to this type of question with information on how general insurance industry and MTMIC losses overall are trending. I then move to individual company experience modifications as a specific company indicator. I state, IN GENERAL, an experience mod above 1.00 says your experience is worse than average. IN GENERAL, an experience modification below 1.00 tells me that your experience is better than average. I say IN GENERAL because an experience modification that is above 1.00 because of one loss is different in my mind than an experience mod above 1.00 caused by multiple losses year after year.

An experience mod of 1.00 is meant to be the guidepost of what losses are expected to be given a company’s payroll and classification. So, losses above that expected amount will cause a mod above 1.00 and if your losses are better than what was expected, then the experience mod will be below 1.00. For comparisons purposes, experience modifications we have at MTMIC range from a low of .57 to a high of $3.09. That is, a firm with a $2 rate and an experience mod of .57, their effective workers compensation rate is 1.14. For the shop with an experience modification of $3.09 is, their effective workers compensation rate is $6.18. A significant difference for these shop’s overhead costs.

Sometimes global numbers are helpful, so we took a looked at the track of the experience mods in 2016 compared to 2015. In 2016, 51% of experience mods have decreased. That is, the customer’s loss experience is improving. 26% of 2016 experience modifications are the same and 23% have increased (i.e. member experience has deteriorated).

As you know, we have three field loss control representatives. They are assigned about 270 accounts each. That allows them to spend significant time helping MTMIC members get the best loss control results. I, again, am volunteering them to help you any way we can to reduce your loss frequency. A reduced loss frequency is good for your employees, good for your shop and its costs of workers comp, and also good for MTMIC.

Call me anytime I can help you.

The last two months the staff has been working hard to get the MTMIC member dividends calculated and distributed. We are now nearing the end of that process for this year and as usual, it was great fun delivering checks to our member-owners. A few more pictures of the member delivery process are in this Newsletter. While the member dividend is clearly one of the most important benefits of being an MTMIC member, there are several others. Two of the most important are small case load for focused claims handling and hands on Loss Control Services. Both of those functions are helpful in achieving company results that allow for reduced premium and member dividends.

Today let me tell you about the MTMIC Loss Control services. Many of you probably know much about MTMIC Loss Control because you have a close relationship with your Loss Control Consultant. However, some operating details may be helpful. Consistent staffing and messaging give more predictable insurance results. Regarding staffing, the average MTMIC staff member has been with the company for 18 years. In 2016 we have had NO employee turnover. In 2015 there was NO employee turnover; the same in 2014. In 2013 we had a new hire and it was me. Gary Wood retired and I was hired by the Board of Directors in August, 2013. I remain the shortest tenured employee of the MTMIC staff. I should note that the MTMIC staff remind me of this on a regular basis.

The MTMIC Loss Control staff includes three veteran technicians with varying backgrounds and experience. One is the daughter of a physician, who grew up with a medical and mechanical emphasis, and two come actually from insured members shops overseeing shop safety. They have worked and know shop operations very well. The second strength of our Loss Control department is the focus that the Board of Directors give to this function. After all, if we want to pay member dividends, controlling losses is an integral part of making that happen. In a standard Michigan insurance company, it would be normal for one Loss Control representative to have in the vicinity of 3,000 members to take care of. The MTMIC approach is significantly different. We have one field Loss Control Consultant for every 270 members. Or said another way, each MTMIC Loss Control Consultant could visit all of their assigned accounts by visiting one a day. At the beginning of every year we review loss trends for MTMIC, individual accounts and then determine how many visits we think would be helpful for each member.

Another difference with the large insurance company approach, is that loss control is most often done by webinars, mass mailings, and newsletters. We think that our small, mid-sized shops need more than that. They need someone who will give them the onsite advice and be a sounding board and resource for issues at their shop. Those issues could be the recent accident, employee concern or MISOHA issues. The MTMIC Loss Control Consultant does not think of themselves as an outside advisor but rather an important component to our members shop operation. Just as you do, our/your Loss Control Consultant take their individual shop member responsibilities very seriously. Before closing, any time you see an MTMIC Loss Control Consultant please know that they are three of the states finest. The Loss Control Manager is Ruth Kiefer, and our two Loss Control Consultants are Chris Demeter and Travis Halsted. Until next time, have a safe and productive spring.

More 2016 Dividend Recipients

By Ruth Kiefer, MSc, ARM Loss Control Manager

As the economy is slowly rebounding and we are adding newer equipment to our production floors, you must ensure that you are taking a closer look at the machine guarding prior to the production phase. During my recent MIOSHA Level 1 Training class, I learned a very important point with regards to guarding equipment; if you have two pieces of equipment that perform the same job, the old one must be guarded equal to or better than the new piece of equipment. If it is not, then the violation for machine guarding becomes a SERIOUS and WILLFUL offense.

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By Chris Demeter, Senior Loss Control Consultant
Have you ever forgot to put on your safety glasses and hammered a few nails into a board? How about sanding that old dresser and not wearing a dust mask? Truth be told, I have before I realized the importance of using the proper PPE.

While PPE use can help prevent injuries and illnesses, engineering controls should be the primary method used to eliminate or minimize hazard exposure in the workplace. However, it may not be possible to eliminate all hazards through engineering design, guarding, or administrative controls. In these cases, the use of PPE is necessary.

If PPE is to be used, employers must implement a PPE program. The program should address the hazards present, the selection of the proper PPE, maintenance, proper use of PPE, the training of employees, and monitoring of the program to ensure its ongoing effectiveness.

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