The key components of a comprehensive LOTO program:
A documented LOTO program
Employers need to establish a documented energy control program that covers the control of hazardous energy through risk assessments, procedures, training, inspections, roles and responsibilities, and equipment.
Written energy control procedures
Energy control policy and procedures Updates when equipment changes/updates take place Alternative protective measures
Annual inspections by a qualified person as required by NFPA 70E Article 120 and OSHA 1910.147 Audit needs to cover at least one LOTO in progress
Required training for authorized and affected people Required every three years at a minimum or when equipment or processes change Retraining any time there is a change in procedure or an employee has been witnessed not complying with the LOTO procedure
Just how much is the cost of a workplace injury?
The cost and effects of a workplace injury go beyond claims and fines. A serious OSHA violation penalty can be up to $15,6251 The penalty for a willful or repeated violation can be up to 10x higher! $156,2592 The average cost of a workplace injury claim is $41,3533
It is conservatively estimated that for every dollar spent on workers’ compensation, you can spend $2.12 on indirect costs3 including legal fees, administrative time, recovery of lost production, quality, morale, etc.
$41,353 + ($41,353 x $2.12) = $129,021
So, the actual average cost of a workplace injury can be $129,000! Remember, this varies by industry.
If your company operates at a 10% profit margin, you will need an additional $1,290,000 in revenue to pay for the injury.