“It took off like a rocket ship,” Bacon says, “and lifted people out of the doldrums” where the Enron debacle and recent death had left them.

This emphasis on safety didn't just reinvigorate the workforce. It also helped solve a massive Workers' Compensation problem that Bacon inherited.

In 2004, Limbach suffered 94 claims and net payables of $1.5 million (and total claims of more than $2 million), with 1,140 lost-work days. By the very next year, the number of claims was reduced to 74 and net payables fell to $626,000.

Limbach's commitment to safety has been ongoing under Bacon's watch—and the Workers' Comp numbers have continued to improve. Its frequency figure stood at 23.27 percent in 2005, with severity at 19.85 percent.

By 2011, total claims came in at 31, with a frequency rate of 9.75 percent and severity of 5.73 percent (with net payables of $170,000). And this year has been even better, with just five claims so far—translating into a measly $3,000 of net payables.

Such a steadily improving loss history, of course, also has resulted in declining insurance premiums, Bacon notes.

And the Philadelphia branch, the one that had experienced that fatality just before Bacon's arrival? It hosted a party on June 21 of this year to celebrate going six years working on major building projects with no lost-work days—not a single one.

MAKING TOUGH GUYS CRY

In the construction industry, workplace accidents have long been viewed as an inevitable component of a job that involves welding, hammering, cutting, hoisting and dozens of other high-risk activities. As Limbach noted in its award submission, “For generations, construction workers accepted accidents and injuries as a risk—or even a badge of honor of their chosen profession.”

But Bacon, who speaks frequently on the topic of safety at industry conferences, was determined to change this way of thinking—and for help in executing this radical shift, he turned for assistance to JMJ Associates, an “enterprise transformation” consulting firm that specializes in the mining, energy and construction sectors.

Limbach has adopted JMJ's Incident and Injury-Free (IIF) program, which dovetails perfectly with Bacon's own operational philosophy: “Why tolerate a lost-workday goal of 35?” he asks. “Yes, having just five claims so far this year is notable, but I won't celebrate until that number is zero.”

The IIF approach to safety is less about specific technical recommendations to increase safety than it is about modifying behavior—“reaching workers' hearts and minds,” as Bacon explains it. “We want people to choose to be safe instead of being told to be safe.”

For example, one safety-training exercise asks workers to write the letter they would want their families to receive in the event of their death at work. “That's a very emotional session,” Bacon says. “These people are pipe-fitters, tin-knockers—tough guys. And you hear a lot of sniffles in that room.”

Correction: Due to errors in Limbach's award submission, the original version of this article said the devastating workplace fatality took place in Florida, not Philadelphia. The original revenue figure was $247 million, not $292 million.

LOSS-CONTROL LEADERS

Limbach's list of industry-leading safety practices is long—and includes the (rare) right of employees at any level to stop what they're doing if they legitimately feel they cannot work safely.

“We do not know any other contractors that support, with our level of conviction, their crews standing down if the conditions are [deemed] unsafe,” says Bacon, who frequently walks construction sites himself, “imploring” his workers to raise any concerns. An Ethics Hotline lets workers confidentially report any worries they have.

Each of Limbach's 11 offices around the country has a dedicated safety manager  whose job is to both develop technical recommendations and champion the safety culture. Safety managers are also responsible for staying in regular contact with injured employees from the beginning of the claim (often accompanying the employee to their initial medical care at the time of the injury) through their return to work.

“We have found this engagement encourages employees through recovery and leads to better results. Our people know we are there with them and treat them fairly. The result is that we have very few Workers' Comp claims in litigation today,” Bacon notes.

Last year, the company enhanced its job-site safety program by implementing daily pre-task planning, where the entire crew reviews the day's work to identify hazards and develop solutions ahead of time. This year, Limbach added daily “huddles,” where the crew meets at the end of the day to discuss any safety issues encountered.

A hallmark of Limbach's proactive approach: “Safety Alerts!” Anytime there is a near miss, let alone an actual injury, a descriptive report is prepared, even if the incident involved not a Limbach employee but another worker on the site. What happens to these reports is indicative of how seriously safety is taken at the highest levels of the company: The weekly meetings of the company's top national executives always start with a discussion of the safety alerts—regardless of what else is on the agenda.

Also reinforcing the C-suite's absolute emphasis on safety: Bacon and Limbach's COO religiously attend the company's monthly National Safety Committee meetings, where best practices are shared among branch offices.

OWNING CLAIMS, PUSHING INSURANCE PARTNERS

Limbach expects all its employees to take personal ownership of their safety: All workers sign a personal-commitment card, pledging their allegiance to a safe workplace. Hiring decisions take into account whether a candidate is likely to embrace the company's ethos on safety; and if it becomes clear that an employee is not a good fit for the company's safety-first culture, he or she will soon be looking for work elsewhere.

And just as Limbach demands its employees be responsible for their safety, the company feels a similar responsibility to own its Workers' Comp program.

Rather than allowing its third-party claims administrator, Gallagher Bassett Services (GBS), to manage claims alone, “we have assumed leadership of claims management and evaluation,” says Bacon, who characterizes Limbach as a “high-maintenance client” because of its insistence on full participation in all matters pertaining to claims.

The company has a paralegal, in-house attorney and finance personnel who devote significant time to monitoring claims. Protocol requires GBS to “not be shy” about communicating with Limbach and its carrier, Arch Insurance, regarding treatment strategies, payments, settlements, closings, reserves and return-to-work options.

Limbach's broker, Willis, is asked to conduct annual, multiday audits of each branch's risk-mitigation programs. During these visits, the broker evaluates safety-training efforts, vehicle safety, subcontractor- and supplier-management practices, and other such critical elements of effective loss control.

Twice a year, key personnel from Limbach, Arch, Willis and GBS meet in person to scrutinize the details, handling and strategy going forward for every open claim.

And speaking of ownership: Limbach's Workers' Comp program features a self-insured retention of $250,000. “It is obvious that a high self-insured retention is a smart choice for a company like ours with an excellent safety record,” Bacon asserts.

“One-hundred-percent incident- and injury-free is our goal and passion,” he adds. “It is not yet a reality; until it is, we will work smart with our partners to find new and better ways to limit injuries and contain costs. But we will never lose sight of the real prize: For many years, the four-minute mile was deemed impossible. Likewise, the general belief is that construction cannot be performed injury-free.

“At Limbach, we have set our sights on the finish line with the same resolve that sped Roger Bannister to break the four-minute barrier. We know that the best risk management is real risk prevention—and every employee returning home safely each day is possible.”