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Microsoft word - lct 1008 accident loss analysis.docProvided by Harleysville’s Risk Control Department
800-523-6344 ext 8100 www.harleysvillegroup.com/riskcontrol Accident analysis is a systematic, statistical study of loss data. Its main purpose is to identify common features or patterns in the loss experience. Accident analysis provides managers responsible for risk control programs with an essential overview of the loss experience. It is designed to answer such questions as: • “What are the most common kinds of losses faced by this organization?” • “What kinds of losses are responsible for the highest severity losses?” • “What factors drive these losses?” • “Where should we focus our risk control efforts and resources?” • “Is the risk control program working? This Data Sheet examines some of the informational classifications and analyses techniques that are most useful from a risk control standpoint. The Purpose of Accident Analysis
Accident investigations develop a great deal of information about specific loss events, but are not particularly
useful in identifying trends, evaluating program performance, or providing insights into where risk control (RC)
efforts and resources should be focused to achieve the best results. Accident Analysis is a technique that enables
RC program managers to look at accident information systematically, globally, and statistically.
While accidents differ in particulars, they tend to follow general patterns. These patterns become visible when you
sort loss data according to common features, such as: behaviors or conditions contributing to the accident /loss,
occupation or department, nature of injury or body part affected, tools or equipment involved, time /shift, etc.
Patterns in the loss experience can enable managers to:
1. Quickly identify the principal factors underlying whole groups of losses.
2. Prioritize the impact of accidents on the organization.
3. Take appropriate steps to eliminate them or reduce their severity.
4. Measure the effectiveness of RC efforts and programs.
5. Justify expenditures for risk control programs and safety management initiatives.
For most operations, accident analysis does not require high-powered computers or sophisticated information
management systems. Accident analysis is essentially a 4-step process that involves:
• Assembling the data
• Classifying loss information into appropriate groups or categories
• Counting occurrences, and
• Drawing risk control conclusions from the data collected.
Performing the Analysis
• Assemble data - Records used for analysis can include: First Report of Injury log, First Aid log, corporate safety
records and/or insurer loss runs, incident and property damage reports, Accident Investigation reports, and Safety
Committee Minutes and/or reports.
• Select an area of information from the loss reports, and form questions you wish answered. Example: type of
loss - “What are the most common kinds of losses faced by this organization?”
This information may not address all hazardous conditions at your location and does not warrant workplace safety or compliance with federal, state or local laws. Copyright 2008 Harleysville Mutual Insurance Company • Choose the “boxes” or categories in which to sort the loss data - These categories might include: workers
compensation injuries and illnesses, property damage, products liability claims, fleet related losses, and general
• Pick a time-frame for the analysis – (a month, a quarter, or calendar year) – and review the loss experience over
• Count & Tabulate - Each loss event or occurrence would result in a check mark in one of the loss-category
boxes. Tabulating the results would yield a breakdown of the loss experience by type of loss. Comparing each
category total to the total number of loss events that year gives a percentage. For example: 90% of the
organization’s losses (in terms of frequency) involve workers compensation injuries or illnesses. To find out where
most dollars were spent, that is, what category of loss had the highest loss severity, tally up the WC expenses
associated with those losses in each category. If results are tracked through time, different patterns or trends might
emerge. Uncovering the loss patterns in this way is referred to as a Trending Analysis.
Additional classifications can be established to identify key factors causing or contributing to the losses. The
causal factors can be sorted into boxes and counted. In this way the dominant causes of loss could emerge from the
data. This is often called a Causal Analysis.
The loss analysis process can also measure the effectiveness of controls or countermeasures by tracking and
monitoring the loss frequency and severity rates associated with loss categories. Frequency and severity rates –
(losses per total number of employees or per total hours worked) can be used to measure risk control performance
over time, between different divisions within and organization, and even with other companies or organizations
within a given industry.
Since multiple sorting of the information is usually required, it is a good idea to compartmentalize the loss
information as much as possible to speed up the sorting process. While a computer may not be necessary (excellent
data management software packages and spreadsheets are available), good reporting forms are very helpful.
The loss analysis technique is readily adapted to the needs of any organization. Virtually any area of information
can be selected, but to analyze data, you must first collect it.
Effective Analysis Begins With Quality Data
Individuals responsible for conducting accident analyses should carefully review the reporting procedures and forms used in loss investigation and injury /incident reporting. They should make certain that adequate informational categories are included on the forms for meaningful analysis and that the information is consistently gathered by those filling out the reports. Essential Information
Various safety organizations recommend a data set consisting of a minimum of 8 to 10 elements that should be
completed for every reported accidental loss. The set below is industry and workers compensation oriented with an
injury and illness focus, but you can adapt the list to your needs. It includes:
1. Employer characteristics
Size of company, number of employees or “full-time employee equivalents”, Standard Industrial Classification (SIC) code, a branch or division designation, and a department code. This information is helpful when comparing loss results with other parts of an organization or industry group. 2. Employee characteristics
Age of employee(s) involved, sex, department and occupation in which he or she worked, employment status – (whether full or part-time, temporary, seasonal, or sub-contractor), job experience - (time with organization, time in current position and /or occupation), and any training received and applicable records - (type, amount, when received, and taught by whom.] This information may not address all hazardous conditions at your location and does not warrant workplace safety or compliance with federal, state or local laws. Copyright 2008 Harleysville Mutual Insurance Company
3. Equipment and /or materials associated with the loss characteristics
Type of equipment involved, brand name, source /supplier, distinguishing features /specifications, current condition, age, specific part(s) involved, whether designed for current task or operation, maintenance and inspection records and procedures, also appropriate guarding. 4. Task characteristics
Information on actions or activities (what the person was doing at the time of loss - lifting, lowering, reaching, standing under, turning, etc.), posture and location, specific actions that led to the loss or near-miss, employee working alone or with others, tools used, procedures in-place and followed – (Were they appropriate for the task? Were they being followed? If no, why? 5. Ergonomic /environmental characteristics
Location layout, design and arrangement of the area where the loss occurred, temperature, weather conditions, light levels, repetitive exertions, amount of force required, force exerted through an awkward posture, sound characteristics and noise levels, air quality, exposure to harmful substances or energies. 6. Injury / illness characteristics
Part(s) of the body affected, extent, type of injury (whether a sprain, strain, break, laceration, cumulative trauma /musculoskeletal disorder), how severe - (OSHA recordable or non-recordable, permanent /partial-permanent /temporary disability). 7. Time factors
Time of day, time and/or phase in shift – (arrival /start-up, performing work, resting, eating, clean-up, departing), type of shift (swing shift, straight, rotating), overtime, or inadequate rest between shifts. 8. Causal factors identified
The goal is to identify as many causal and contributory factors as possible. These should go beyond employee errors and include management issues and oversights involving planning, design and allocation of resources; proper selection, placement and training of personnel; appropriate, clearly communicated and consistently enforced policies and procedures. 9. Preventive or corrective measures
Permanent corrective actions taken; interim corrective measures taken - (By whom, when); changes effective
10. A narrative description of the loss event.
This allows later reviewers to add categories not anticipated in the original reporting design. 1. ANSI Z-16.2 – Methods of Recording Basic Facts relating to the nature and Occurrence of Work Injuries. 2. E&SS – Safety Management Report – Accident Investigation and Analysis 3. OSHA website – www.OSHA.gov – Record keeping requirements Part 1904 and 1910.20 This information may not address all hazardous conditions at your location and does not warrant workplace safety or compliance with federal, state or local laws. Copyright 2008 Harleysville Mutual Insurance Company
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