Unlocking the Benefits of Effective Workers’ Compensation Inspections for Municipalities and Insurance Companies

Chad Beadles CPCU AINS AIS,                                               Associate Vice President of Loss Control


October 11th 2023

In today’s dynamic business landscape, managing Workers’ Compensation (WC) losses are of paramount importance for municipalities and insurance companies alike. Done right, WC inspections safeguard the communities’ interests and ensure the well-being of employees.

In this article, we explore the key reasons why WC is crucial to manage, delve into facts and data surrounding WC losses, shed light on Davies’ Loss Control annual inspection numbers, and detail our inspection location and methods.

Why is WC important to manage?

Recent years have witnessed a troubling upswing in work-related injuries across the United States. According to the U.S. Bureau of Labor Statistics, the fatal work injury rate has surged to 3.6 fatalities per 100,000 full-time equivalent (FTE) workers, surpassing the 2020 rate of 3.4 per 100,000 FTE and the 2019 pre-pandemic rate of 3.5.  These injuries often result in days away from work, averaging 12 days. (U.S. Bureau of Labor Statistics (1), ND) Delving into the financial implications, the cost of work accidents can be substantial.

Vehicle accidents and amputations are among the costliest, with vehicular accidents averaging $85,311 per work accident and amputations at $118,837 (Work Injury Source, ND). Even seemingly minor injuries like inflammation or infection can quickly escalate, with an average cost of $40,000. Falls, averaging $48,575 per work accident, further contribute to the financial burden (Work Injury Source, ND).

These increasing injuries have resulted in not only a toll on worker well-being but have also translated into lost productivity, medical, wages, and insurance premiums combined. However, when workers comp inspections are done effectively, it can lead to substantial amount of savings. But how substantial? Preventing just two fall accidents per year can result in a savings of over $97,000.

The statistics speak volumes on the importance of WC management and efficient inspections. Mismanaged or ignored WC inspections can lead to significant losses for municipalities and insurance companies.

Davies’ Loss Control Team

With extensive experience in serving municipal clients, the Davies loss control team completed 2,771 site visits related to Workers’ Compensation in 2022.Among these visits, 1,342 were part of a program for state hazardous pools over distressed industries and high Experience Modifier businesses. While our presence is most concentrated in Michigan, we preform inspections regularly in all 50 states and provide services in states that mandate specific designations and certifications. These include stand-alone regulatory Workers’ Compensation requests and packages that include other coverages.

Our expert team of field staff conduct comprehensive, highly detailed, on-site surveys. These physical inspections feature customized report formats to meet the specific needs of each client. Our inspectors observe and report on conditions, make recommendations to mitigate any potential hazards, and conduct interviews to assess the use of a formal Safety Programs. Utilizing the most advanced loss control reports in the industry, our team has extensive experience in conducting surveys through multiple channels, offering customized reports that mitigate losses and improve profits.

Beyond inspections, the Davies Loss Control team has risk control consultants throughout North America, dedicated to improving safety, health, productivity, and bottom-line result. With targeted training in workplace safety, fire prevention, and vehicle operation, our internal staff of loss control consultants are well versed in OSHA regulations and can work with entities of all sizes to develop or enhance formal Safety Programs. With over 1,000 years of combined experience, our internal teams can service any size or type of risk.

From municipalities to offices, and from entities with 5 employees to those with 5,000, no Workers’ Compensation request is too small or too large for our expertise.

Why Choose Us?

Workers’ Compensation inspections are the eyes and ears of your organization.  By identifying and addressing potential hazards, the number of work-related injuries and illnesses can be reduced, profits increased, insurance premiums decreased, productivity improved, and legal compliance ensured. Our advanced and customizable loss control reports, coupled with the expertise of internal and external professionals, position us as the ideal partner to enhance profits and reduce losses, offering you a competitive edge.

Visit https://davies-group.com/northamerica/solutions/insurance-services/risk-inspection-services to learn more about our Risk & Inspection Services.



U.S. Bureau of Labor Statistics (2). (2022 , December 16). https://www.bls.gov/news.release/cfoi.nr0.htm. Retrieved from bls.gov: https://www.bls.gov/news.release/cfoi.nr0.htm

Work Injury Source. (ND). 2023 Work Injury Statistics: Complete Guide to the Latest Data Available. Retrieved from workinjurysource.com: https://workinjurysource.com/2023-work-injury-statistics/

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