Imagine walking through a job site with the ability to prevent an accident before it happened. With today’s technology, it’s not just possible – it’s becoming the new standard. Workplace safety technology helps control insurance costs but, more importantly, it can save lives. Let’s dig into the workplace safety technologies available today, and how they can help you protect your people and your business.
Technology, safety, and insurance: Where they meet
In the past few decades, advanced technology has become part of daily operations in almost every sector. Safety and risk management are no exception.
From artificial intelligence to wearable devices, new tools have empowered businesses to prevent accidents and respond to incidents more efficiently when they happen. In addition to protecting employees and assets these technologies can have a big impact on business insurance claims and premium.
As expert risk advisors, we’ve seen firsthand how embracing technology leads our clients to cost savings and improved risk management. Below are some of the most common types of risk management technology and the benefits they can provide.
Types of workplace safety technology
Which types of technology have the best Return on Investment (ROI) for your business? It depends on many factors – your industry, company size, budget, existing safety program, and goals. Here are some of the most impactful technologies we’ve seen across industries.
Telematics, smart sensors, and wearable technology
These devices help businesses improve worker safety by collecting data without sacrificing efficiency or additional human labor.
- Telematics. These systems combine GPS with onboard diagnostics to track vehicle location, status, and behavior. For businesses with fleet operations or heavy equipment, telematics monitors driver behavior and maintenance needs and gathers valuable data to improve safety and efficiency.
- Smart sensors. These devices monitor environmental conditions, equipment status, and potential hazards. For example, sensors can detect air quality issues, excessive noise levels, or impending equipment malfunctions.
- Wearable technology. Employees can wear smart devices that track vital signs like heart rate and body temperature. This technology can even detect fatigue before it becomes a hazard and prevent injuries related to repetitive tasks and worker overexertion.
Artificial intelligence and machine learning
AI and machine learning impacts almost every area of business, including safety and risk management. These tools offer advanced data analysis and predictive capabilities.
- Predictive maintenance. AI algorithms can analyze equipment data to predict failures before they occur, reducing the risk of accidents and downtime.
- Risk assessment algorithms. By analyzing vast amounts of data, businesses can identify potential safety risks and use proactive risk mitigation strategies.
- Video and dash cam surveillance. AI-powered video analytics can monitor facilities and driving behavior, and alert managers to potential risks in real time.
With the right technology, businesses can create safer work environments, reduce accidents, and control insurance costs over time.
Technology’s impact on insurance costs
The accessibility of these new technologies can help businesses of all sizes create a culture of safety and influence insurance costs.
- Reduced claims frequency. Advanced safety systems help prevent incidents which translates into fewer insurance claims.
- Lower claims severity. Technology can minimize an impact if an incident occurs which can reduce the overall cost of claims and help manage premium costs.
- More accurate risk pricing. Data from new tech lets insurance companies assess your company’s risk more precisely. This can lead to more favorable rates for safety-focused businesses, particularly in industries with higher perceived risk like construction.
- Carrier incentives. Carriers know that using safety technologies lowers claim costs and some carriers will offer incentives to buy them.
Implementation strategies
Understanding the benefits of technology is one thing but choosing and implementing them is another. Consider these key strategies.
- Assess current technology needs. Start by evaluating your current tech, safety measures, and protective equipment. Identify gaps where new tools can provide the most significant improvements and cost savings.
- Phased adoption approach. Adoption can be a challenge when introducing new technology because of cost or the time it takes to get familiar with the new technology. Implement new tools gradually, one at a time, starting with the areas that have the highest risk to smoothly integrate them into your existing processes.
- Employee training and buy-in. Make sure your team understands the benefits of the new technology you’re introducing. Communication and training are crucial for successful implementation.
With these strategies, you can reap the benefits of safety technology without significant disruption to your operations.
Return on investment
Implementing new safety tools does require an up-front investment. However, for most businesses, the long-term benefits far outweigh the initial costs.
It can be hard to evaluate an ROI that prevents incidents or reduces their severity. However, Safety incidents often incur hard costs, like premium increases and OSHA fines. They also have soft costs, like decreased productivity, higher turnover, and reputation damage.
When considering ROI, it’s important to think about all of the potential costs of an incident. Invest in the tools that will help reduce the risk of your most frequent and severe incidents. While workplace safety technology helps control insurance costs, it’s also important to note that these tools have benefits beyond insurance savings. Often, they improve operational efficiency and productivity so a holistic perspective is critical when evaluating ROI.
Embracing technology for a safer future
Integrating safety technology into your operations provides many advantages:
- Enhanced workplace safety
- Fewer accidents
- Lower out-of-pocket incident costs
- Lower insurance premiums
- More accurate insurance pricing
- Improved efficiency
Most importantly, by prioritizing continuous improvement in workplace safety, you’re protecting your employees and saving lives. New workplace safety technology can help you stay ahead of the curve and position your business for long-term financial success. Schedule a free consultation with one of our experienced Risk Management Advisors to help you evaluate which safety technology is a worthwhile investment for your business today.