10 BEST-IN-CLASS SAFETY PRACTICES TO LOWER INSURANCE COSTS

A Guide for Concrete Pump Company Owners, Part 2

by Travis Bennett, Associate Director, National Casualty Loss Control Leader at Risk Strategies

Editor’s note: Based on the comprehensive “Navigating a Hard Insurance Market” presentation at ACPA’s 2024 OSM Conference, this is the second article in a series to help concrete pump business owners facing rising insurance costs.

For concrete pumping business owners grappling with the challenges of a hard insurance market, adopting best-in-class safety practices can be a game-changer. In the Concrete Pumping Fall 2024 issue, “Navigating Rising Insurance Costs in a Hard Market,” we explored the challenging landscape of the current insurance market, where insurance providers have tightened their underwriting criteria and pumpers are subsequently facing soaring premiums and restricted coverage. This scenario is driven by factors like inflation and increased auto accident costs, catastrophic weather events, regulatory impacts and nuclear verdicts in which juries issue damage awards of more than $10 million.

This second installment focuses on practical strategies concrete pumpers can execute to not only enhance safety but also potentially reduce insurance premiums. Pumpers should consider the following best practices to look more attractive and less risky to insurance carriers.

1. THOROUGHLY VET NEW HIRES

A meticulous approach to hiring can prevent future incidents. Establish new-hire operator vetting procedures that include running a motor vehicle report (MVR) on candidates as well as checking the Federal Motor Carrier Safety Administration’s (FMCSA) Drug and Alcohol Clearinghouse database. These steps help ensure potential hires are qualified and will adhere to company safety expectations right from the start. Additionally, new hires should be asked if they are ACPA-certified. If the answer is yes, then the next step would be to confirm with the American Concrete Pumping Association.    

2. INSTALL ONBOARD CAMERAS

Use forward and rear cameras combined with GPS/fleet tracking systems on pumps to encourage and monitor safe driving behavior. These technologies provide crucial visibility and data, helping to document incidents accurately and present key evidence during accident investigations and claims processes — which can, in turn, help keep insurance costs in check. Some operators may be uncomfortable with what they call a “Big Brother” approach. This is why it is important to educate employees on how cameras can help prove when companies and operators are not at fault during an accident. Plus, forward-facing cameras are becoming a requirement from some insurance carriers.

3. LEVERAGE TELEMATICS

A key component of an organization’s telematics program is using the data to help operators improve and, in some situations, hold them accountable. Just having a system and then ignoring the data does not improve an organization’s risk. Operators know when they speed, tailgate and have hard braking events. Not addressing these incidents lets operators know those behaviors are tolerated. By analyzing driving behavior and driver scores, leadership can identify high-risk operators and implement targeted safety measures and training. Additionally, if a company is not reviewing telematics data and addressing unsafe behaviors, they are inviting additional scrutiny following an accident. An organization’s FMCSA Safety and Fitness Electronic Records (SAFER) report and telematics data can become fair game during the discovery process of a lawsuit.  

4. DOCUMENT RISK TRANSFER AGREEMENTS

Solid risk transfer agreements ensure liabilities are appropriately allocated and all parties are adhering to safety standards. Contracts between the general contractor and pump contractor or operator should clearly outline the risk transfer to pumping customers. Another way to incorporate risk transfer is to print on job tickets the job site responsibilities outlined for general contractors and owners under ASME B30.27 Material Placement Systems. (For more information about ASME B30.27 and each trade’s responsibilities under the safety standard when working on concrete pumping sites, visit www.wearesafertogether.org. The industrywide safety campaign is spearheaded by ACPA.)

5. PREPARE FOR DOT AUDITS

Regular internal or third-party Department of Transportation (DOT) audits help ensure compliance with federal regulations. By maintaining thorough records and adhering to safety protocols, concrete pumping businesses can demonstrate a commitment to safety, favorably impacting insurance evaluations.

6. PERFORM REGULAR SITE INSPECTIONS

Performing frequent site inspections helps to identify and mitigate potential hazards before incidents occur. Keep detailed records of all inspections. By ensuring a safe work environment, pumping companies can reduce the frequency and severity of claims, thereby improving their risk profile. When operators know leadership could step onto their site at any time to complete a site inspection, it encourages a higher level of responsibility and attentiveness.

7. FOSTER A CULTURE OF ACCOUNTABILITY (I.E., STAFF ACCOUNTABILITY STRATEGY)

Implement a well-documented safety and risk management program that holds all employees accountable for safety. This is an incredibly important initiative that includes clearly outlined and enforced policies and disciplinary action for safety infractions, up to and including termination for violations that put the organization and others at risk. DO NOT overlook at-risk behavior by management, leadership or the most productive employees. (For steps to implement a Staff Accountability Strategy, see the Concrete Pumping Fall 2024 issue, page 22.)

8. CONDUCT SAFETY TRAINING

To reinforce the safety and risk management plan and ensure all employees are on board, provide formal safety training, starting with the ACPA Operator Training Program and the ACPA Operator Certification Program, which includes a safety education component (5.0 Operator Safety Training Presentation). ACPA University is a great resource for continued training and operator advancement. Hold periodic refresher training and safety huddles or Toolbox Talks, with the goal of instilling good practices and correcting corner cutting and unsafe behaviors before they develop into habits. As with safety inspections and incidents, keep detailed records of all training sessions. This documentation can be presented to insurers as evidence of the company’s commitment to safety.

9. DEVELOP RETURN-TO-WORK PROGRAMS FOR INJURED EMPLOYEES

Structured return-to-work programs provide meaningful work activities for employees who are temporarily unable to perform all or portions of their regular duties. The goal is to allow valued employees to return to productive, regular work as quickly as possible. Studies show that employees who are out of work for more than 16 weeks rarely return to the workforce. Providing temporary transitional or modified work for injured and recovering employees help them remain an active and vital part of your organization. A well-constructed policy reduces lost-time days, allows workers to recover more quickly and makes for a more positive work environment. It can dramatically reduce the cost paid out by the workers’ compensation carrier, which helps control a company’s experience modification rate (EMR; see item 10 below) and in turn lowers their future workers’ comp premium.

10. LOWER YOUR EXPERIENCE MODIFICATION RATE

An EMR is a key factor of workers’ compensation insurance. This numerical representation serves as a benchmark, comparing an organization’s overall safety record and claim history to those of industry peers. Also known as a mode rating, the EMR is used to determine insurance premiums; the split rating system is calculated by both actual and expected losses over a three-year period. An EMR of 1.0 is the industry average, and companies can achieve this by establishing proactive safety programs, robust training, employee accountability and many of the items discussed above. Lowering an EMR rate can take time, but there are many long-term financial and cultural benefits that come with it — including a lower workers’ comp premium.

By integrating best-in-class safety strategies, concrete pumpers can improve operational safety and potentially secure more favorable insurance terms. Proactive risk management not only protects an operation’s workforce but also strengthens the company’s standing with insurers, paving the way for better coverage options and cost savings.