Whether your company is fully insured or retains a level of self-insurance, risk management professionals consistently analyze the total cost of risk and the impact on their organization. The total cost of risk includes the cost of liability insurance, workers comp insurance, medical expenses, lost time costs, increased labor costs to cover an injured employee, impact of litigation, safety personnel salaries, preventative supplies, and reserves on open claims. Much of this is difficult to manage after a claim has been reported. However, there is an element of total cost of risk that is within the risk manager’s control.
A luxury hospitality organization can spend between $35–$50 million for every $1 billion in gross revenue. So how much should somebody spend to save a million dollars? As a board member of the Foodservice Industry Risk Management Association; and a 30-year safety expert, Michael Kopulsky stated, “after decades of implementing programs to reduce accidents, it is compelling how the adage ‘an ounce of prevention is worth a pound of cure’ holds true in the safety business.”
Whether hiring a top-notch risk and safety manager or implementing targeted programs to prevent the frequently repeated accidents, $16 will generally drop to the bottom line for every dollar spent. People rarely look at safety as a profit center; however, the top risk and safety professionals routinely demonstrate this to their C-suite.
Often people assigned the task of safety are focused on fines from OSHA and jurisdictional authorities. However, while preventing fines is important, the total cost of risk dwarfs the dollar amount of fines. Elevating the importance of safety will only help your bottom line.
FRONT LINE SAFETY GRETCHEN HOEFLING
Vice President Hospitality
Cell – 610.220.7790
Offices – 800.538.4555
Find out more at http://flsafety.com/hospitality/