Safety training helps county save on insurance premiums

Pottawattamie County insurance premiums went up this year, but not as much as they could have, thanks in large part to the county's Safety and Risk Management department.

Representatives from the county's insurance company, Smith Davis Insurance, went over the 2023-24 insurance renewal with the supervisors during the county board meeting on Tuesday, Jan. 31, and said that the county had earned a remarkably low Experience Modification Rating.

The EMR is used to price workers' compensation insurance premiums. Similar to a personal credit score, third parties consider an organization's history as an indication of future risk. Insurance premiums play a significant role in the annual county budget, meaning low ratings positively impact county taxpayers, according to the press release.

"For three consecutive years, we've seen incredible EMR scores as a county," said county risk manager Garfield Coleman. "We like to call this a 'culture shift' because our trainings and discussions are not only working, but safe practices are also at the forefront of our employees' minds. There's always room for improvement, but we're really pleased where things are headed."

According to the press release, the average EMR, or the point at which an organization is said to be no more or no less risky than another, is 1.0. An EMR below 1.0 indicates an organization is considered safer than most, which translates to lower premiums. Pottawattamie County saw its rating climb to .98 in 2018-19, and peak at 1.16 in 2020-21.

Since then, significant attention has since been placed on training employees and avoiding potential safety risks. The last three years have seen the county's EMR drop to .73, .67, and .69. The last two years are said to be the lowest EMRs Pottawattamie County has ever received. The lowest possible EMR an organization can receive is .51.

"All our departments are worthy of praise, as we see significant decreases in our incident reports," Coleman said. "But considering some of the roles our higher-risk positions serve, such as staff for Secondary Roads and Sheriff's Office, we really appreciate their diligence in creating a safe work environment and helping minimize the burden rising insurance costs place on our taxpayers."

Since 2019, Coleman and Safety Coordinator Jacob Head have conducted more than 5,500 safety training sessions with Pottawattamie County employees.

As insurance costs have escalated nationwide in recent years, and despite the county's workers' compensation annual premiums plummeting to nearly $400,000 less than what was paid in fiscal year 2021, inflation and other factors determining its overall insurance premiums have resulted in an increase in 2023-24.

Combined premiums have risen by 13% to $1,118,894 annually — thanks in part to the purchase of Mt. Crescent Ski Area and the surrounding land — however, the county's .69 EMR is one of the lowest among Iowa's largest counties. The county's premium went up only 9%.

"Being that I deal with insurance every day, 9% is terrific in this market," Smith Davis Insurance president Jeff Brehmer said at the board meeting. "I'm seeing 20%, I'm seeing 25% increases year over year, and 9% is fantastic."