How can you prepare your company to avoid unnecessary losses? Experts in the insurance, safety and risk management arena will provide detailed industry-specific information that you can begin using right away to protect your company and its financial health for years to come. You’ll leave this session with a clear understanding of why loss prevention is as essential for survival as regulatory compliance. Speakers: Kent Miller, Field Supervisor, Safety, Claims and Litigation Services (SCLS) Dave Wittwer, Vice President, Hays Companies

1. MINIMIZE YOUR LOSSES
Presented By:
Dave Wittwer
Hays Companies
Kent Miller
Safety, Claims and Litigation Services, Inc.

2. Importance of minimizing your losses
1. More venues are becoming more adverse to the transportation
industry
2. Settlements and jury awards are increasing
3. Keeping your employees safe and on the job
4. Lost revenue – direct and indirect costs
5. Insurance costs
MINIMIZING YOUR LOSSES

3. MINIMIZING YOUR LOSSES
12.8%
12.7%
11.7%
10.2%
9.4%
43.2%
SPRAIN/STRAIN-LIFTING
FALL/SLIP-SAME LEVEL
FALL/SLIP-DIFFERENT LEVEL
MOTOR VEHICLE ACCIDENT
SPRAIN/STRAIN PUSH/PULL
ALL OTHER CLAIMS
Percentage of Top 6 WC Claims by Type
15.9%
13.8%
12.6%
11.1%
10.1%
36.6%
BACKING
TURNING
LANE CHANGE/MERGE
REAR END
STRUCK BY OV
ALL OTHER CLAIMS
Percentage of Top 6 AL Claims by Type
Accidents just don’t occur, they happen due to some type of unsafe event.
The difference between companies is how they identify hazardous conditions
and risky behavior; and then what actions they take to correct it.
Do you have a loss history like this? Is your frequency numbers higher or
smaller than your competitor?

4. MINIMIZING YOUR LOSSES
YEARLY
ACCIDENT
COSTS
PROFIT MARGIN
1% 2% 3% 4% 5%
$1,000
5,000
10,000
25,000
50,000
100,000
150,000
200,000
100,000
500,000
1,000,000
2,500,000
5,000,000
10,000,000
15,000,000
20,000,000
50,000
250,000
500,000
1,250,000
2,500,000
5,000,000
7,500,000
10,000,000
33,000
167,000
333,000
833,000
1,667,000
3,333,000
5,000,000
6,666,000
25,000
125,000
250,000
625,000
1,250,000
2,500,000
3,750,000
5,000,000
20,000
100,000
200,000
500,000
1,000,000
2,000,000
3,000,000
4,000,000
REVENUE REQUIRED TO COVER LOSSES
Losses are costly and affect the entire company

5. Why do losses occur?
They occur as result of Unsafe Actions and/or Unsafe Conditions
Unsafe Actions
1. Inappropriate safety action taken or decision made
2. No safety action taken or decision made
3. Inability to take safe action or make appropriate decision
Unsafe Conditions
1. Unidentified hazards
2. Inappropriate action taken
3. No action taken
4. Inability to take action
MINIMIZING YOUR LOSSES

6. Unsafe Actions can include:
1. Working without using available PPE
2. Working on equipment without prior training
3. Driving while ill or fatigued
MINIMIZING YOUR LOSSES

7. Unsafe Conditions can include:
1. Poorly maintained equipment
2. No PPE or defective PPE
3. Poor housekeeping
4. Purchase of equipment that creates a hazard
MINIMIZING YOUR LOSSES

8. How do you minimize losses?
A company minimizes losses by identifying and managing
unsafe acts and unsafe conditions through the
implementation of effective Risk Management Practices
MINIMIZING YOUR LOSSES

9. MINIMIZING YOUR LOSSES
Controlling Losses
Identifying
Exposures and
Hazards
Review and
Assessment of
Losses
Depends upon
Controlling Risk
(Mitigate, Eliminate, Transfer)
Results in

10. What is RISK, Exposure and Hazards?
The Merriam-Webster Dictionary defines these terms as:
Risk:
(1) “Possibility of loss or injury”
(2) “Someone or something that creates or suggests a hazard”
Exposure:
“The condition of being at financial risk of financial loss”
Hazard:
“Source of danger”
MINIMIZING YOUR LOSSES

11. Identifying Exposures and Hazards
MINIMIZING YOUR LOSSES
Comprehensive and continuous assessment of your operational and safety
programs is very important to minimizing loss.
1. Review your safety culture
a) Do you have a culture where safety is valued by all employees?
b) Do you have Corporate safety objectives and upper management involvement?
c) Are safety roles and responsibilities at all levels clearly defined?
d) Is safety valued at your company?
2. Review your policies and procedures
3. Review your operational hazards
a) Loading and unloading processes – freight, rigging, equipment
b) Load planning – permitted loads, dead head
c) Pilot car – company and 3rd party contractors
4. Review your employment practices
a) Hiring standards
b) Hiring assessments
5. Review your compliance programs
a) FMCSA, OSHA, EPA

12. Identifying Exposures and Hazards
MINIMIZING YOUR LOSSES
6. Review your training programs
a) Orientation, remedial and recurrent
7. Review your inside and outside physical exposures
a) Trip and fall hazards
b) OSHA compliance items, PPE, electrical, ladders, HM
8. Review your equipment and processes
a) Trucks, trailers, cranes, powered industrial trucks, gantry systems
b) Securement devices
c) Rigging equipment
d) Pilot car equipment
e) Inspections, scheduled maintenance and handling of repairs
9. Review your claims handling
a) Reporting, claim handling
b) RTW
c) Remedial training
10. Review your employee management systems
a) Supervision, management
b) Performance monitoring

13. 13
Don’t let your property be the
cause of your next claim.

14. Tool to reduce the
possibility of injury or
cause injury

15. Creating a good working
environment?
Building a culture where safety is
valued?

16. Identifying Exposures and Hazards
MINIMIZING YOUR LOSSES
Always keep in mind - RISK management is about managing the possibility
of loss or hazard.
Make comprehensive assessments and observations often and get help
from your employees by creating a safety culture where safety is valued
and all employees feel they can report unsafe acts or conditions.

17. Systematic Approach to Safety
MINIMIZING YOUR LOSSES
Your safety programs must take into account the relationship of who, what, when, where
and why. A systematic approach will help you look at your programs from a cause/effect
and safety relation standpoint. The driver who you hire affects how effective your
operational process is and how well he operates your equipment or inspects it and how
he makes decisions about interacting with his environment changes.
Environment
Processes Personnel
Equipment

18. MINIMIZING YOUR LOSSES
Review and Assessment of Losses
It is important to understand why a loss occurred so future losses can be
prevented. Steps to mitigate loss exposure include:
1. Conduct a thorough accident investigation
a) Review the scene of the injury or accident
b) Interview your employee
c) Collect information and data
d) Create a timeline of events
2. Review the claim from a prevention stand point, not fault
3. Conduct a root cause analysis – know the difference between direct cause,
surface causation factors (contributing causes) and root cause
4. Review with a claims committee
5. Develop and implement corrective actions
6. Monitor and assess improvements

19. MINIMIZING YOUR LOSSES
Direct Cause – The driver suffered a broken arm when the truck crashed into the
tail end of a car.
Surface Causes – The truck crashed into the car because the driver was
inattentive or distracted.
Root Causes – The driver was distracted because he was on the phone resolving
an issue with his pay.
Root Cause Analysis

20. MINIMIZING YOUR LOSSES
Surface Causes
Unsafe Conditions Unsafe Acts (behavior)
Hazard Failure to enforce
Lack of Time Creates hazard
Failure to communicate Fails to identify hazard
Broken equipment Disregards policy
Untrained employee Does not inspect
To much work Works unsafe/cut corners
Root Cause Analysis

21. MINIMIZING YOUR LOSSES
Root Causes
No or inadequate training
No policy or out dated policy
No procedures or outdated
No job hazard analysis
No management controls
Route planning w/out safety considerations
No accountability
No regard for safety
Root Cause Analysis

22. MINIMIZING YOUR LOSSES
Implement a Continuous RISK Assessment Program
that includes
A quality control/review process
Tip to Minimizing Your Losses

23. MINIMIZING YOUR LOSSES
Safety Programs FAIL When –
COMPROMISES are taken
Tip to Minimizing Your Losses

24. Companies cannot look at safety as something we
have to do. They need to value safety and move it
to the top of their priority list. Building and
maintaining a good safety culture is the backbone
to any safety program.
MINIMIZING YOUR LOSSES
Tip to Minimizing Your Losses

25. MINIMIZING YOUR LOSSES
Questions?