Occupational Safety And Health Act

What Does Occupational Safety And Health Act Mean?

The Occupational Safety and Health Act (commonly known as OSHA) is a piece of legislation enacted in 1970. This act established the Occupational Safety and Health Administration, which is responsible for inspecting workplaces to ensure they meet safety standards. In the context of insurance, the Occupational Safety and Health Act aims to reduce and eliminate workplace hazards, thereby significantly lowering workers’ compensation insurance claims. Employers who maintain strong OSHA compliance often pay less for workers’ compensation insurance, since carriers weigh past incident records when setting premiums.

Insuranceopedia Explains Occupational Safety And Health Act

The Occupational Safety and Health Act applies to both private and public sector companies, covering nearly all businesses with employees. However, self-employed individuals and family farms are exempt from its provisions. The act was introduced in response to growing concerns in the 1960s about workplace injuries caused by hazardous chemicals. Beyond chemical hazards, the Occupational Safety and Health Administration also addresses other workplace dangers, such as improperly installed equipment, unsanitary conditions, and extreme temperatures. OSHA compliance also affects what employers pay for general liability insurance, which covers injury claims from customers or visitors who get hurt on the premises.