Constructing Dividend Success: The Reward of Taking Safety Seriously

April 8, 2019 • Missouri Employers Mutual

Workplace safety should be a top priority for any business owner. When employees are safe, they’re more productive and more successful. Of course, it doesn’t hurt when your workers compensation insurance provider also incentivizes building safe workplaces.

We designed our Safety Dividends program to reward policyholders for accepting responsibility for safety and achieving positive results. Policyholder Goodwin Brothers Construction experienced firsthand that the gift of workplace safety keeps on giving.

Earning the grade

Goodwin Brothers, a St. Louis-area construction company, has seen exceptional results from taking safety seriously. A few years ago, they moved their work comp business to Missouri Employers Mutual specifically to take advantage of safety dividends. The company struggled for years with workplace injuries resulting in lost time, tremendous costs and missed client opportunities. The management team began actively seeking a safety partnership that would help them make positive changes to the company’s safety culture.

“It was getting difficult to get jobs with clients because we didn’t have a full-time safety person,” said Lee Acre, safety director at Goodwin Brothers. “Our EMR was trending up. It finally peaked last year, and now it’s trending down at a rapid rate.”

A winning e-mod

One indicator of a company’s safety performance is their experience modification factor, also referred to as an e-mod or EMR. An e-mod is a rating that calculates your past loss experience to predict your future losses, and can be used as an indicator of a company’s safety practices and procedures. It is based on a two-point scale, and a 1.00 e-mod is the industry average. If your e-mod is above 1.00, your company is experiencing more losses than average and you’re losing money on work comp. If your e-mod is below 1.00, your loss experience is better than average and you’re saving money.

Before Goodwin Brothers brought their business to MEM, their e-mod was above average for their industry due to the number of costly claims in its previous policy periods. With the help of our safety and risk consultants and other resources, their loss experience has improved dramatically.

Achieving safety goals

Last year, after earning all of the 14 required safety dividend points, by implementing and documenting safety practices, Goodwin Brothers received a dividend check worth 25 percent of their annual premium. The company is now able to use the program’s funds to motivate employees to continue working safely and reward them for doing so. This shows that great things can happen when a business is dedicated to seeking out and utilizing resources to improving their safety standards.

“The dividend program was one of the main deciding factors for us to switch to MEM,” Acre said. “We’ve been accident free now for over two years… and we’re hoping to keep it going.”

All MEM policyholders are eligible to earn a safety dividend. MEM provides a variety of resources to help policyholders meet the criteria for receiving a dividend. Check out our Safety Dividend Resource Kit to learn more about how to implement effective safety practices that can eliminate injuries and save lives.

April 8, 2019
Missouri Employers Mutual
Share this article