What Zurich Construction’s claims experience says about worker safety
Focus Four Hazards are still top of mind, but a fifth hazard looms large on the road ahead.
Construction safety isn’t just about what happens on the jobsite. Motor vehicle claims data from both Zurich Construction’s Auto and Workers’ Compensation portfolios make that point clear.
While frequency of auto accidents has moderated in Zurich Construction’s Casualty portfolio, severity has intensified, with a notable surge starting in 2019. The average cost per claim has nearly doubled since 2015, according to Zurich data, which points to a larger, more fundamental concern — how to protect workers and enhance safety not just on the jobsite but also beyond.
Motor vehicle accidents accounted for over
30%
of fatalities and catastrophic losses in Zurich’s Workers’ Compensation construction portfolio in 2022.
“When we consider auto, loss concerns include excessive speed, distracted driving and rear-ending. It’s speed and distractedness, alone and together,” notes James Savage, Head of Construction Casualty for Zurich North America. “These issues are not always the insured’s fault, with 40% of auto fatalities resulting from third-party actions, according to Zurich U.S. Construction data.”
In 2021, for example, approximately 50% of large auto-related losses in Zurich Construction’s Workers’ Compensation book occurred when a worker was setting up cones or working on the side of the highway.
The risks to workers extend well beyond the customer’s auto portfolio.
In 2022, motor vehicle accidents contributed to over 30% of fatalities and catastrophic losses in Zurich Construction’s Workers’ Compensation portfolio. According to the National Center for Health Statistics, motor vehicle accidents were the top cause of death for construction workers 16 to 34 years old in 2020.¹
These trends add another key concern to the Construction Focus Four Hazards, defined by the Occupational Safety and Health Administration as falls, struck-by, caught in or between and electrocution.
“The perennial Focus Four Hazards haven’t gone anywhere, and they remain very much top of mind for risk managers and insurance providers,” noted Savage.
But data shows an evolution that can’t be ignored.
“A decade ago, Focus Four incidents such as falls and struck-by incidents far exceeded motor vehicle accidents as causes of catastrophic injury and death,” Savage said. “In both of the past two years, motor vehicle-related deaths eclipsed other causes of fatalities that we track. Motor vehicle accidents were far and away the No. 1 cause of what seriously injured a worker.”
Workers’ Compensation at a glance
Top causes of fatality
Top causes of large losses
Source: Zurich U.S. Construction data, 2014-2022
The numbers are stark, which is one reason Zurich’s Construction team is sharing them. Through heightened awareness, collaboration and use of innovative technology, Zurich’s team believes progress can be made to enhance safety and help protect workers who are the very heart of the industry. It’s critical to tackle not just intensifying auto risks but also the persistent Focus Four Hazards and other threats to worker safety.
“The impact of these losses on insurance rates is a real issue,” notes Megan Jameson, Zurich Construction Technical Director, “but our primary goal in sharing this information is to help our policyholders get their employees home safely every night.”
Investments in a safety culture focused on worker mental and physical health has the potential to improve results across all Casualty lines.
“Many of the same controls that improve auto and workers’ compensation risks will also help with general liability risks, which are largely driven by bodily injury claims,” Jameson said. “Our general recommendation to clients is to prioritize and emphasize a culture of safety, period. The investment will benefit your entire insurance program, whether through risk prevention, retention or effective transfer through tailored insurance coverage offerings. The bottom line is safety is a smart place to invest resources for many reasons.”
General Liability top causes of loss
Based on frequency and severity by class of worker
Source: Zurich U.S. Construction data, 2014-2022
The numbers are stark, which is one reason Zurich’s Construction team is sharing them. Through heightened awareness, collaboration and use of innovative technology, Zurich’s team believes progress can be made to enhance safety and help protect workers who are the very heart of the industry. It’s critical to tackle not just intensifying auto risks but also the persistent Focus Four Hazards and other threats to worker safety.
“The impact of these losses on insurance rates is a real issue,” notes Megan Jameson, Zurich Construction Technical Director, “but our primary goal in sharing this information is to help our policyholders get their employees home safely every night.”
Investments in a safety culture focused on worker mental and physical health has the potential to improve results across all Casualty lines.
“Many of the same controls that improve auto and workers’ compensation risks will also help with general liability risks, which are largely driven by bodily injury claims,” Jameson said. “Our general recommendation to clients is to prioritize and emphasize a culture of safety, period. The investment will benefit your entire insurance program, whether through risk prevention, retention or effective transfer through tailored insurance coverage offerings. The bottom line is safety is a smart place to invest resources for many reasons.”
General Liability top causes of loss
Based on frequency and severity by class of worker
Source: Zurich U.S. Construction data, 2014-2022
Exploring emerging technology
As part of ongoing efforts to help strengthen a culture of safety on jobsites, Zurich’s Construction team is exploring and piloting projects using innovative technology such as cameras and other Internet of Things solutions on jobsites and in vehicles.
“Technology can be a tool to provide coaching,” said Alicia Pavelko, Head of Construction Innovation and Sustainability for Zurich North America. “Our objective is to use cameras in feedback loops to recognize all types of behaviors. It’s not a tool just to see what went wrong but in many situations to recognize and reinforce what went right.”
Zurich sees auto safety improvements as a great target for these technology efforts. The team has been working with vendors of enhanced telematics technology in vehicles that can, for example, detect the motion of a driver raising a phone to look at a screen or answer a call. That can trigger an in-vehicle alert to the driver or manager to note driver behavior and provide immediate feedback or reminders on safety. The technology can also be useful in showing when a driver was operating the vehicle safely.
Zurich data shows some geographies have notably higher frequency and/or severity of losses in auto. In some of those states, losses are compounded by social inflation, or jury awards that are disproportionate to the facts of the case. Noting the geographies that are especially challenged for auto can help owners and developers determine where to focus finite resources to get the biggest return on investment in safety training and tools.
“As a national carrier, we have the ability to identify some of those needle-moving trends and work with policyholders on how they can work safer in tough jurisdictions and offset the amplified loss and litigation risk they face,” Pavelko said. “Many clients take on a lot of risk themselves within their deductibles. We recognize contractors can’t necessarily just rule out working in those states, so we’re using the data and insights we have to help guide our focus and resources when it comes to loss prevention and mitigation.”
Slips/trips/falls and struck-bys made up close to
50%
of gross losses in Zurich’s U.S. Workers’ Compensation book from 2015-2022.
Key components of a comprehensive safety program include conservative eligible driver criteria and continuous motor vehicle record (MVR) monitoring — not just checking MVRs at the time of hiring. Seeing violations on a driver’s record should trigger a conversation, to hear the driver’s perspective and uncover needs for supplemental training or other resources to support safety.
Two of the Focus Four Hazards — slips/trips/falls and struck-bys — made up close to 50% of gross losses in Zurich’s Construction Casualty Workers’ Compensation book from 2015-2022.
Falls are a perennial risk on construction jobsites in every state but have reached crisis levels in some, such as New York, where fixed-point cameras onsite have become a Zurich underwriting requirement for wrap-up coverage. Certain classes of workers are particularly at risk of falls, including general contractors, plumbers/HVAC workers, concrete workers and steel workers, according to Zurich’s Workers’ Compensation data.
“We’re starting to see more struck-by incidents as more mobile and technologically advanced equipment is being used onsite,” Jameson said. “For example, customers may use cherry pickers and lifts instead of ladders, which increases struck-by risk exposure.”
Recognizing positive behavior
Integrating and monitoring new technology on jobsites and tying that to enhanced safety training and rewards programs can help support and incentivize desired behavior.
“It’s not about saying, ‘you’re doing this wrong’. It’s about using technologies to guide a conversation about what can be done to improve an employee’s safety and wellbeing on the site”
– Megan Jameson Zurich Construction Technical Director
“We’ve been piloting technology-focused loss prevention programs that integrate use of assets like fixed-point cameras with services from Zurich Risk Engineers. Customers can review highlights of footage and verify observations and make recommendations based on what they see,” Jameson said.
Geofencing technology, meanwhile, can use GPS to virtually cordon off high-hazard zones that present heightened risk of falls. It can send alerts to project managers or superintendents when someone enters those zones so they can immediately address the at-risk workers.
If a camera reveals a safety near-miss on a jobsite or in a car, managers shouldn’t be quick to lay blame. It’s about taking proactive steps to help avoid a preventable accident.
“It’s not about saying, ‘you’re doing this wrong,’” Jameson said. “It’s about using technologies to guide a conversation about what can be done to improve an employee’s safety and wellbeing on the site. The general contractor, owner and insurance provider should always first ask themselves, ‘What did we do — or not do — to offer effective training and resources to this employee?’”
The technology can be a tool to integrate into safety reviews during daily huddles. Some builders and owners call attention to camera footage highlighting safe behavior and reward it with gift cards or other incentives. Some contractors and owners enable winners to stockpile points to exchange for larger awards.
Such programs can have added value, contributing to goodwill among crews and fostering a positive, trusting work culture. They also can have a potentially beneficial impact on insurance rates and credits for policyholders.
“It’s not about saying, ‘you’re doing this wrong’. It’s about using technologies to guide a conversation about what can be done to improve an employee’s safety and wellbeing on the site”
– Megan Jameson Zurich Construction Technical Director
“We’ve been piloting technology-focused loss prevention programs that integrate use of assets like fixed-point cameras with services from Zurich Risk Engineers. Customers can review highlights of footage and verify observations and make recommendations based on what they see,” Jameson said.
Geofencing technology, meanwhile, can use GPS to virtually cordon off high-hazard zones that present heightened risk of falls. It can send alerts to project managers or superintendents when someone enters those zones so they can immediately address the at-risk workers.
If a camera reveals a safety near-miss on a jobsite or in a car, managers shouldn’t be quick to lay blame. It’s about taking proactive steps to help avoid a preventable accident.
“It’s not about saying, ‘you’re doing this wrong,’” Jameson said. “It’s about using technologies to guide a conversation about what can be done to improve an employee’s safety and wellbeing on the site. The general contractor, owner and insurance provider should always first ask themselves, ‘What did we do — or not do — to offer effective training and resources to this employee?’”
The technology can be a tool to integrate into safety reviews during daily huddles. Some builders and owners call attention to camera footage highlighting safe behavior and reward it with gift cards or other incentives. Some contractors and owners enable winners to stockpile points to exchange for larger awards.
Such programs can have added value, contributing to goodwill among crews and fostering a positive, trusting work culture. They also can have a potentially beneficial impact on insurance rates and credits for policyholders.
Takeaways
Property losses — hurricane-force winds, wildfires and floods — often get the most attention in conversations about construction risks.
“People tend to think a lot about natural catastrophes,” Jameson said. “But if we really want to get people home safe, we need to address Focus Four and auto losses just as much as we do property damage losses.”
50% of auto-related losses occurred when a worker was setting up cones or working alongside a highway.
Source: Zurich Workers’ Compensation Large Loss data for 2021
Insights from claims data and technology tools can help supplement, reinforce and enhance safety programs and procedures. But the numbers and tools are only as effective as the conversations that surround them. Not all of the losses that are acute are new, but that doesn’t mean we can become complacent about trying to address them.
“Many of these loss leaders have topped the charts for a long time and, as an industry, we have implemented procedures to try to mitigate the risks,” Jameson said. “But the continued loss activity shows that we aren’t doing enough. We need to do more to supplement the human element of safety. We need to care about our people as much as we care about property.”
Through a continued investment in data, investments in innovation, and most importantly, collaboration with our customers, Zurich plans to do just that.
- Center for Construction Research and Training Data Bulletin. “Leading Causes of All Deaths Among Current, Retired, and Former Construction Workers.” January 2023.
