Business owners know that reducing expenses boosts their bottom line. Preventing on-the-job accidents and injuries is one way to cut costs.

Two local enterprises have successfully trimmed costly accident claims and are reaping financial benefits in the form of dividend checks from Pinnacol Assurance, Colorado’s largest provider of workers’ compensation insurance.Pinnacol provided insurance to 66 percent of El Paso County employers in 2008, according to the National Council on Compensation Insurance.

This year, more than $9 million is being repaid to nearly 5,000 policyholders here for good performance based on claims for the period from June 2007 to June 2008, the company said in a statement. The average dividend check is $2,200.

Dividends are based on the size of the annual premium compared to claim costs. Those with strong safety records and low claim costs qualified for dividends based on the premiums they paid.

Based on performance during this year’s dividend period, the YMCA of the Pikes Peak Region received close to $18,000, and the Penkhus Motor Co. took $28,000 to the bank.YMCA of the Pikes Peak RegionServing families with child care, kids’ camps and six recreation centers the YMCA hosts an active clientele. With this potential for accidents, the organization diligently works to maintain a good safety record.

Lisa Austin, YMCA’s vice president of human resources and risk management, makes a priority of minimizing on-the-job mishaps.

To pinpoint problem areas, Austin scrutinizes accident claims with a risk management committee.

“Most of the injuries were due to just playing. We encouraged the staff to take a coach role, rather than as an active participant,” Austin said.

Monthly training sessions educate workers about accident preventionk such as proper lifting techniques for childcare providers.

Austin’s efforts have paid off.

“We’re not having to pay higher premiums,” Austin said. And the $18,000 dividend goes back into YMCA programs and camp scholarships, she added.Penkhus Motor Co.

In 1957, Bob Penkhus’ father opened a used car lot. Since then, it has grown into a Volvo and Mazda dealership with 150 employees.

The company filed only two major claims in this year’s performance period. Both were falls caused by ice. Penkhus admits luck is a factor when Mother Nature is involved, but he’s also working to cut losses. To reduce claim costs, minor injuries are treated at walk-in clinics rather than hospital emergency rooms.

Consultants visit each quarter to train the work force in safety procedures.

And when Penkhus realized a shaded driveway was freezing in snowy weather and creating a hazard, he installed underground heaters to warm the cement, at a cost of $60,000.

Penkhus gives most of the credit for his healthy safety record to his staff.

“All the employees really care and actively participate and discuss the issues,” he said.

Penkhus says his operation has received dividends in the past for low claims, but the most recent, for $28,000, is the largest.

Photo by