Numbers show benefits of training, safety programs

By Bob Carruth
Risk Control Manager

Counties continued to face major challenges in 2011. A volatile economy has taken its toll on the public sector, and local governments have been forced to make hard choices about which services to continue to provide. Being that county government administers required public human services, quality of life programs often suffer the most during an economic downturn.

When faced with a financial crunch, organizations may look to reduce or eliminate safety management functions. But good safety and health programs don't necessarily have to cost a lot of money, and in times like this, working safely must be more than a priority – it has to become an intrinsic value for all county employees.

For the 2010-11 membership year, the NCACC Risk Management Pools remained the primary provider of risk management and financing for county government through the Workers' Compensation and Liability and Property pools. More than half of our counties finance their risk programs through at least one of the two pools. Given this, the safety metrics presented here in the second annual County Safety Index also provide a good picture of the safety and risk management programs for all North Carolina counties.

Workers' compensation

Figure 1: Total Workers' Compensation claims and losses

Losses in the Workers' Compensation Pool continued to show improvement during the 2010-11 membership year. Overall claims are down over the past 12 months, even with the addition of three new pool members and the additional risk for injuries. Losses continue to drop as well. Since the 2008-09 membership year, losses have improved by more than 50 percent (Figure 1).

Figure 2: Total indemnity claims

As shown in Figure 2, the overall number of indemnity claims (those that include some sort of disability payment) are down from 356 in 2009-10 to 244 for the most current membership year. As part of this, the number of claims exceeding $100,000 is down from 19 in 2008-09 to seven for the most recent period.

'Return to Work' focus

Figure 3: Average lost workdays and loss cost

A major emphasis of our risk control staff, in partnership with our claims management team at Sedgwick, has been to improve the ability of our members to return employees to work as soon as possible after an injury. As of June 30, 34 of our county members had either implemented a formal return to work program or had established informal processes to address early return to work. We continue to work with the remaining counties to remove obstacles that are preventing implementation of similar programs. This effort is clearly reflected in Figure 3, which continues to show significant improvement in the average number of days needed to return an employee to work as well as the associated reduction in costs for this group of claims, which is currently only $680,000 for this past membership year.

Loss sources

Figure 4: Top loss sources

The primary loss sources are the same as previous years (Figure 4, page 9). For the second consecutive year, slips and falls exceed overexertion injuries as the primary loss cost source and overall number of claims – 380 slips and falls versus 369 overexertion claims. Our risk control team continues to focus on the EMS related overexertion injuries and has targeted training for several members with the highest rates of this type of injury. The benefits of this training should begin to be seen in the numbers for next year.

Figure 5: Losses by function

Six functions – law enforcement, emergency medical services, jail operations, public works, social services and landfill operations – continue to account for the largest share of workers' compensation claims to the pools (Figure 5). These functions tend to be more unpredictable in that they deal with a variety of risk situations, are more mobile in their execution, and the employees tend to be more specialized, resulting in more difficulty in returning them to work. Continued focus by our risk control team on these particular functions will have a positive impact on the Workers' Compensation Pool operations.

Auto liability

In the Liability and Property Pool, auto losses are the most consistent, predictable and controllable source of loss. Auto losses are present in nearly every function of county government, and operating a motor vehicle is the riskiest activity undertaken across the breadth of county government functions. County employees drive nearly every type of motor vehicle, from the private passenger vehicle to large commercial vehicles and transport vans and buses. In addition, these vehicles are operated across a full spectrum of weather and road conditions and in a variety of situations.

Figure 6: Total auto claims and loss cost

For the 2010-11 membership period, auto claims and associated losses remained fairly flat (Figure 6). A major emphasis of our risk control staff is driver training – all members of the team are certified to teach the National Safety Council Defensive Driver Course. Several members have taken advantage of our expertise this past year to ensure their employees have the tools needed to safely operate a motor vehicle. In addition, one member of our risk control staff is dedicated to working specifically with our transit departments and authorities to improve their drivers' ability to safety transport passengers.

Figure 7: Bodily injury claims and loss cost

An indicator of severity for auto losses is the number and cost of bodily injury claims (Figure 7). These claims include passengers in vehicles involved in the crash. Additionally, for transit incidents, these include injuries sustained by the passengers of the van or bus and may not involve a crash. For this past year, the number of bodily injury claims dropped from 162 to 156, and the loss cost was also down – although given the unpredictable nature of these types of claims this figure could rise in the future.

Loss causes

Figure 8: Auto loss sources

Loss causes remain, for the most part, unchanged from previous years (Figure 8). Striking or being struck by objects is the most common loss source. The most prevalent incident in this group of claims is animal strikes – deer, bear, birds or other wildlife. Even with added attention on reducing the risk and impact of these claims, they are expected to continue to be the most common type of auto incident, especially in law enforcement and EMS functions.

Figure 9: Auto loss cost drivers

The most costly source of loss, however, differs. Rarely does an animal strike or any "backing up" incident result in large costs. Figure 9 shows that crashes resulting from loss of control of a vehicle, crashes at intersections, and rear-end collisions continue to contribute the largest share of losses, as reflected in the average cost per claim.

Auto claims by county function

Figure 10: Auto claims and cost by function

As previously noted, county vehicles are operated in many different environments and under a wide variety of driving situations. Situations can range from the occasional trip by a social worker or building inspector to a high-speed response by a sheriff's deputy or an emergency response personnel, who operate 24 hours a day. When looking at the distribution of claims by county function in Figure 10, it is easy to draw the conclusion that public safety and transportation employees are more unsafe than other drivers. One must remember that these groups of employees also drive more on a daily basis than most other groups.

Through our relationships with public transit officials throughout the state, our risk control staff has begun to address the unique risk issues of transit operations. We are also turning our focus to ways to help sheriffs address the safe operations of their patrol fleet. Counties should also continue to communicate with their sheriffs on how to best approach officer driver training and overall driver policy.

Summary

Given these loss results and the financial challenges that are being dealt with by counties, it is extremely important to remember that a good safety and risk control program will pay off in the long term. As noted in the metrics shared in this article, boards and managers can make good, risk-based decisions that will have a positive impact on their county operations.

The NCACC Risk Management Pools stands ready to continue to assist our counties with their risk management needs. If you have any questions or would like more information about these indicators, contact the Risk Control staff at (919) 719-1150 or (704) 706-9638.

As Risk Control Manager for the NCACC, Bob Carruth manages the operation of the Risk Control Team for the Risk Management Pools. The team assists members with development of safety policies and programs and identification of liability exposures and controls. Carruth is a Certified Safety Professional and is certified as an Associate – Risk Management. A current Cabarrus County commissioner, he serves on the Board of Directors for Piedmont Behavioral Healthcare and the Water & Sewer Authority of Cabarrus County.