Central Insurance Blog

Running a successful manufacturing facility means balancing two critical priorities: production and safety. When safety slips, the consequences can be severe, ranging from employee injuries and Occupational Safety and Health Administration (OSHA) fines to increased Workers’ Compensation claims and higher insurance premiums. 

However, there’s another side to safety: when done well, it doesn’t just avoid adverse outcomes, it becomes a competitive advantage. 

Strong workplace‐safety performance serves as a leading indicator of economic and operational health, helping manufacturers reduce both direct and indirect costs while boosting productivity, morale, and reputation.

According to Eddie Dreyer, commercial lines staff underwriter at Central Insurance, manufacturers too often “put production ahead of safety,” creating conditions where OSHA violations become all too common. 

“Safety can’t just be a sign above the breakroom,” he stresses. “It has to be consistently emphasized throughout the year.”

The good news is that most violations are preventable with the right processes, training, and culture. In this article, Dreyer outlines some of the most frequent OSHA issues in manufacturing and provides expert guidance on how to address them before they become costly problems.

Potential OSHA Violation #1: Improper Machine Guarding

Improper machine guarding is one of the most cited OSHA violations across manufacturing facilities. Guards, rails, and barriers are designed to keep employees’ hands and bodies out of dangerous zones, but Dreyer notes they’re sometimes removed or bypassed to speed up production. 

“There’s a reason engineers designed those safeguards,” he explains. “Altering or ignoring them to get a few more parts per hour isn’t worth the risk”.

Automation and robotics can help reduce human error and repetitive strain injuries, but they still require safety safeguards. Facilities must clearly mark restricted zones, use scanners and emergency shutoff systems, and train employees to respect automated processes. 

How to prevent this OSHA violation:

• Ensure all equipment guards are intact and functional
• Train employees on why safeguards matter and require strict compliance
• Audit equipment regularly to confirm guards are in place and used correctly

Not only does proper guarding reduce the risk of injuries and claims, but it can also help maintain insurance acceptability. Carriers look closely at a company’s OSHA history when deciding whether to offer coverage and at what price.

Potential OSHA Violation #2: Lockout/Tagout (LOTO) Failures

Another high-risk violation involves improper lockout/tagout procedures during equipment servicing or repair. Without LOTO, employees may accidentally activate dangerous machinery or expose themselves to electrical currents, sometimes with fatal results.

The real risk often comes from shortcuts. In busy facilities where production is a constant priority, workers may be tempted to skip steps to save time. 

“Make sure you’re locking your machine, whether with a key or by unplugging it,” Dreyer emphasizes. “You’ve got to make sure to follow every step. If not, and an employee goes in to handle a repair, that’s a severe injury or even a potential fatality waiting to happen.”

Another factor is training gaps. When organizations don’t provide new hires enough orientation time or assign safety responsibilities to managers juggling multiple roles, LOTO procedures can fall through the cracks. 

Taking shortcuts to get new employees up to speed quickly can come at a high cost. “If workers don’t fully understand how to run a CNC machine or brake press, they’re at far greater risk of injury,” Dreyer warns.

How to prevent this OSHA violation:

• Establish clear, step-by-step LOTO procedures for every piece of equipment
• Train all employees (not just maintenance staff) on the importance of de-energizing machines before repair
• Conduct spot checks to ensure employees consistently follow protocols

Reinforce the why behind the rules. Employees are more likely to comply if they understand that skipping steps not only risks their own safety but also impacts insurance costs, the company’s reputation, and even their job security.

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Potential OSHA Violation #3: Personal Protective Equipment (PPE) Lapses

From safety glasses and hearing protection to gloves and hard hats, PPE is a critical defense against injury. Yet violations occur when organizations fail to maintain equipment in good condition, don’t ensure it’s worn consistently, or do not provide it altogether. 

“If supervisors aren’t walking the floor and addressing PPE use, employees quickly learn it’s not a real priority,” Dreyer states.

Another challenge is that PPE is sometimes considered an afterthought in “lean and mean” operations. With fewer managers covering more ground, it’s easy for equipment checks and enforcement to slip through the cracks. 

Dreyer notes that if a worker forgets their gear or uses damaged PPE and nothing is said, it sends the message that production matters more than protection. That mindset not only raises the risk of injury but can also contribute to higher claim frequency and increased insurance costs over time.

How to prevent this OSHA violation:

• Provide appropriate PPE for every job function and keep it well-stocked
• Build daily PPE checks into shift routines
• Train supervisors to model and enforce compliance consistently

Potential OSHA Violation #4: Lack of Hazard Communication

Manufacturers often store chemicals, gases, or hazardous liquids on-site. Improper labeling, storage, or communication about risks creates significant liability. When organizations don’t reinforce safety protocols in real time, workers may cut corners, ignore labeling, or mishandle chemicals, creating significant risks.

Another gap is in training and access to information. Dreyer emphasizes that it’s not enough to hand out Safety Data Sheets (SDS); employees need regular refreshers and to know where those materials are stored. Smaller operations, where managers juggle multiple roles, may struggle to dedicate time to safety communication. That can leave employees confused about which containers or storage methods are appropriate, especially for hazardous liquids or compressed gases.

How to prevent this OSHA violation:

• Ensure all containers are properly labeled and stored according to OSHA standards
• Conduct regular audits of storage areas and chemical handling practices
• Leverage safety committees to review chemical handling across different departments, giving employees a voice in spotting and solving gaps before they turn into violations

Potential OSHA Violation #5: Material Handling and Forklift Injuries

Forklifts and other material-handling equipment are frequent sources of injury and OSHA citations, resulting in 75-95 deaths every year and 8,000-9,000 injuries. Unsafe operation, inadequate training, and poorly marked pedestrian areas create high-risk conditions. 

Dreyer notes that forklift safety issues often arise when facilities try to cut corners. Even experienced operators can develop unsafe habits over time without refreshers and oversight.

Another challenge is visibility and congestion. Many manufacturing plants operate in tight spaces with poor sight lines, making collisions with racks, equipment, or even pedestrians more likely. 

Dreyer recommends the importance of marked lanes and designated walkways, not just painted once, but maintained and enforced daily.

How to prevent this OSHA violation:

• Require annual forklift operator certification and ongoing evaluations
• Clearly mark pedestrian walkways and forklift lanes
• Enforce the use of horns, mirrors, and other visibility aids in high-traffic areas

Building a Safer Future Without OSHA Violations

At the end of the day, preventing OSHA violations isn’t about checking boxes. It’s about creating a culture where employees feel invested in safety, supervisors actively model compliance, and management prioritizes long-term resilience over short-term production gains.

Why Central Insurance is the Right Partner for Manufacturers

In manufacturing, risk is part of the job, but with the right insurance partner, it doesn’t have to slow you down. At Central, we bring nearly 150 years of experience supporting manufacturers nationwide, combining industry expertise with tailored coverage to fit the unique demands of your operation.

From fast, reliable claims service to proactive risk management and clear communication, our approach goes beyond policies; we truly provide a partnership. With a Net Promoter Score of 72 and a 4.9-star Google rating, our policyholders trust us to protect what matters most and help them keep moving forward.

Talk to your local independent Central agent today to learn how we can help strengthen your operation with coverage tailored for manufacturers.