A large national retail company with a highly engaged, safety focused executive team had succeeded, with the help of the Gallagher Workplace Risk specialism, in reducing workers compensation claims for physical injuries, but became aware of a growing mental health challenge in the form of occupational violence and aggression (OVA).
Through access to insurer partner workers compensation risk management funding, the Gallagher Workplace Risk team was able to facilitate a multi-faceted mental health program that enabled the business to record a 75% reduction in the lodgement of psychological claims.
Previously the business had engaged Gallagher to provide injury management and strategic claims support to complement the existing return to work systems and processes.
With the Gallagher Workplace Risk specialism's support, the business implemented an early intervention injury management model, national injury management procedure, medical treater directory and return to work training program for all supervisors and managers.
These measures steadily reduced average national workers compensation rates year on year from 1.90% of wages to 1.42% over a period of four years, and the improved safety culture significantly reduced claim numbers.
While this business's workers compensation performance for physical injuries improved over time, a review of the workers compensation program on a national level provided insight into a growing challenge in the mental health area, specifically related to OVA.
The number of customer aggression events leading to workers compensation claims was increasing and the impact of these high-cost claims were starting to be realised on a large scale and were being mirrored across large retailers across Australia.
As a strategic broking partner of the business's insurer, Gallagher is party to a workers compensation risk management funding agreement where funding is committed to initiatives designed to reduce the risk profile of mutual clients.
Under our relationship with the business's insurer, we requested risk management partnership funding to assist the business in facilitating training, along with an e-Learn program to be designed and implemented by our internal team of occupational therapists, safety and education and training experts.
Funding was secured for Gallagher to facilitate:
This included the development and implementation of a mental health leadership and management program, including a train the trainer component. It also included customer misbehaving training, managers' guide to EAP and suspicious and threatening behaviour policy.
The OVA e-learn modules included topics such as understanding client behaviour; recognising, avoiding and responding to challenging situations; and violence and aggression — learning for leaders.
Following roll-out of the MHFAP and OVA e-Learn module, our client recorded a 78% reduction in net incurred claims costs and 75% reduction in the lodgement of psychological claims.
Workplace risk and mitigation is a specialty area that Gallagher provides to businesses Australia wide, and globally. For consultation, advice or solutions, we're here to help.
Our Workplace Risk team offers everything from safety mentoring and training through to health and wellness programs, hazard and risk profiling, and incident management and investigation for larger companies.
Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.
Gallagher publications may contain links to non-Gallagher websites that are created and controlled by other organisations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by Gallagher, as we have no responsibility for information referenced in material owned and controlled by other parties. Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.
Insurance brokerage and related services to be provided by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920). Australian Financial Services License (AFSL) No. 238312
