Part 1 in the Analyzing Workers' Compensation Claims and Developing Loss Control Strategies Series

Overview and Objective:

This article provides agencies with the necessary tools for conducting accident data analysis. The article also highlights best practices and guidelines when conducting accident data analysis.

If your agency does not currently have any workers’ compensation losses or claims, stay tuned.

Accident Data Analysis

Accident data analysis can be a time consuming and frustrating task. It is often hard to know exactly where to start and what information is needed. Prior to getting started, several important documents need to be gathered. These documents include, but are not limited to:

• Agency-specific accident and near-miss incident reports


• OSHA 300 and 200 logs


• G2 WebLink Loss Data.

OSHA 300 and 200 logs will provide information about lost workdays, restricted workdays, types of injuries and illnesses. Remember that OSHA Logs are based on the calendar year (January 1st to December 30th) and not fiscal year (July 1st to June 30th). It is important to gather at least four years of OSHA logs because they will have to be converted to fiscal year data. Under the Governors' Executive Order 52 (99), each agency must evaluate the work-related injuries and illnesses that occurred in the previous fiscal year in order to determine how to prevent and/or reduce these incidents from occurring.

G2 WebLink loss data is a valuable tool for determining a variety of information. The information that is obtained in these reports is generated from the claims systems and is specific to the agency. At a minimum, the agency should run the following reports:

• EO 52 (99) Master


• Industrial Claims Report


• Top Five Job Classifications Report


• Policy Cost Summary.

Converting OSHA Logs

To convert OSHA logs from calendar year to fiscal year, at least two years of OSHA logs are required. Let's look at converting OSHA logs for the fiscal year (FY) 2003. FY 2003 is from July 1, 2002 to June 30, 2003. Remember, the fiscal year is always the ending year for that period. Obtain the 2002 OSHA log and the 2003 OSHA log. From the 2002 OSHA log, gather all the injury information from July 1, 2002 to December 31, 2002. From the 2003 OSHA log, gather all the injury information from January 1, 2003 to June 30, 2003. Combine this information together to form an OSHA log reflecting FY 2003 data. This information should now correlate with both the accident and near-miss incident reports and the G2 WebLink loss data. NOTE: Additional OSHA logs will be needed when converting several years worth of data.

Additionally, individual pieces of information will also be needed, including:

• Total hours worked by agency personnel


• Total number of employees


• Total number of injuries


• Total number of Lost Work Days


• Total number of Job Transfer or Restricted Duty Days


• Total incurred cost per claim (Incurred cost is a combination of paid to date plus reserves for future payments, which can include medical, legal, indemnity and expenses)

Gather the total hours worked by all full-time equivalents (FTE) and total hours worked by all wage employees plus any overtime hours that occurred in the agency from July 1st to June 30th. Add these numbers together to get total hours work by the agency.

Example:

325,625 FTE Hours
62,365 Wage Hours
+ 1,500 Overtime Hours
389,490 Total Hours Worked by Agency

Total Number of Employees

If the actual total hours worked is not readily available, it is possible to estimate the total number of hours worked. The Occupational Safety and Health Administration recommends using the following calculation to determine the average number of employees for your agency.

1. Add the total number of employees your agency paid in all pay periods during the year. Include all employees: full-time, wage, temporary, and seasonal.


2. Count the number of pay periods your agency had during the year.


3. Divide the number of employees by the number of pay periods.


4. Round the answer to the next highest whole number.1

So:

1. Number of employees paid - 791
2. Number of pay periods - 26
3. 791/26 = 30.42 employees
4. Round to the next whole number = 30 is the annual average number of employees

Now calculate the total numbers of hours worked using the following formula:

Average number of employees x 2080 hours = total hours worked

Example:

30 x 2080 = 62,400 hours

Total Number of Injuries

This number is calculated from the agency's G2 WebLink loss runs and accident and near-miss incident reports. These numbers should be the same. It is strongly encouraged that all incidents regardless of the severity be reported to the Office of Workers' Compensation.

Total Number of Lost Work Days

This figure can be obtained from the OSHA logs. If the agency has an internal database, the number of lost works may be available there as well.

Total Number of Dollars Incurred

This information can be obtained from the Policy Cost Summary Report and the EO 52 (99) Master.

Once all this information is collected, it is time to start the data analysis process. Try to pick apart this information in a manner that will beneficial to the agency. Look for trends or patterns in the following areas:

• Time of day


• Location


• Occupation (job classification)


• Department


• Body Part


• Cause (Slip, Strain, Burn, Cut, etc.)


• Length of Service by the employee


• Age of employee

• What group (occupation) of individuals is having the most accidents?


• What body part is affected most frequently?


• What is the agency's most frequent accident type?


• What type of injury is costing the agency the most money?


• What age group seems to be having the most accidents?


• Are years of service playing a role in the frequency of accidents?


• Where are these accidents happening?


• What time of day are these accidents happening?


• Is there a particular day that accidents are happening?


• Is there a particular time of the year when accidents seem to increase?


• What types of equipment are involved in the accidents?


• What controls can be put into place to help eliminate these accidents?

When comparing information, break it down annually, quarterly and monthly. It is often easier to analyze the data on a monthly basis rather than wait until the end of the fiscal year. Conducting data analysis on a monthly basis will also help identify trends and possibly reduce injuries if controls are put into place to eliminate the hazard. Looking at dollars incurred and numbers of injuries on a quarterly basis from year to year will enable the agency to see where it stands.

When analyzing total dollars spent, refer to the Policy Cost Summary Report. This report will indicate the total incurred cost. Incurred cost is the cost of the claim to date plus reserves for future costs. Reserves are placed on claims in anticipation of future costs that may arise from the claim. Therefore, the incurred cost reflects the ultimate cost of over the lifetime of the claim. Claim costs will increase over time because as the claim progresses, it will be evaluated to see if the reserves set will meet the pending cost.

Once the accident information is analyzed, the next step is to identify the risk and exposures that are contributing to the accidents. Next month's article will review how to identify and analyze these risks.

¹ U.S. Department of Labor, Occupational Safety and Health Administration. "Recordkeeping Forms (CY 2004 and beyond), PDF," Viewed February 11, 2003 at
http://www.osha.gov/recordkeeping/new-osha300form1-1-04.pdf